YEAR ESTABLISHED: 1883
REVENUE: $14.3 billion
(2015: $14.24 billion)
Aerospace coatings; Architectural coatings; Automotive OEM coatings; Automotive refinish coatings; Coatings service ; Industrial coatings; Packaging coatings; Protective and Marine coatings; Specialty coatings and materials
Michael H. McGarry, president and CEO; Viktor R. Sekmakas, executive VP; Glenn Bost, senior VP and general counsel; Vincent J. Morales, senior VP and CFO; Bryan N. Iams, VP corporate and government affairs; David S. Bem, VP science and technology and CTO; Jean-Marie Greindl, senior VP, Architectural Coatings, and president, PPG EMEA; Timothy M. Knavish, senior VP, Automotive Coatings; Ram Vadlamannati, senior VP, Protective and Marine Coatings and Corporate Development; Michael Horton, president, PPG Asia Pacific, and VP, Protective and Marine Coatings, Asia Pacific; Marcos Achar Levy, VP, Architectural Coatings, Latin America, and CEO, PPG Comex; Shelley J. Bausch, VP, Global Industrial Coatings; David J. Cole, VP, Architectural Coatings, U.S. and Canada; Barry N. Gillespie, VP, Aerospace Products; Anup Jain, VP, Specialty Coatings and Materials; Jeffrey J. Oravitz, VP, PPG Coatings Services, and president, MetoKote; John R. Outcalt, VP, Global Automotive Refinish; Kenneth J. West, VP, Global Packaging Coatings; Gregory B. Benckart, VP, Automotive Refinish, Americas; Kevin D. Braun, VP, Industrial Coatings, Americas; Gary R. Danowski, VP, Automotive Coatings Operations, Automotive Parts and Accessories-Decorative and Commercial Vehicles; Diane Kappas, VP, Protective and Marine Coatings, Americas; Rajesh Lall, VP, Operations, Industrial Coatings, Packaging Coatings and PPG Asia Pacific; Adriana Macouzet, VP, PPG Latin America, and GM, Protective and Marine Coatings, Latin America; Matt C. Marek, VP, Automotive Coatings, Americas; David P. Morris, GM and VP, Americas, Aerospace; Thomas E. Maziarz, VP, Stores and Dealers, Architectural Coatings, North America; Vincent Robin, VP, Automotive Coatings, Asia Pacific; Jane N. Valenta, VP, Global Technical Architectural Coatings; Timothy Welsh, VP, Australia and New Zealand, and GM, Architectural Coatings, Australia and New Zealand; Pauline Yuen, VP, Refinish Coatings, Asia Pacific; Radhika Batra, VP, Global Supply Management; Christopher R. Caruso, VP, Information Technology; Jeffrey C. Davies, VP, Corporate Development; Anne M. Foulkes, VP, Associate General Counsel and Secretary; Mark C. Kelly, VP and Controller; John A. Jankowski, VP and Treasurer; Johann (John) F. Kolling, VP, Tax Administration; and Hervé Tiberghien, VP, Human Resources.
Sales of PPG Industries’ three coatings business segments – Performance Coatings, Industrial Coatings and Architectural Coatings EMEA – combined for $14.3 billion in 2016.
“PPG had a successful year in 2016, despite a more challenging global economic environment and growing geopolitical uncertainty in many of the regions where we operate,” said Michael McGarry, president and CEO of PPG. “Thanks to our customers and employees, we were able to continue to strengthen our paint and coatings business around the world.”
PPG’s Performance Coatings and Industrial Coatings reportable segments supply coatings and specialty materials for customers in a wide array of end-use markets, including industrial equipment and components, packaging material; aircraft and marine equipment; automotive original equipment; as well as for other industrial and consumer products. In addition to supplying coatings to the automotive OEM market, PPG supplies refinishes to the automotive aftermarket. PPG also serves commercial and residential new build and maintenance markets by supplying coatings to painting and maintenance contractors and directly to consumers for decoration and maintenance.
PPG Withdraws Proposal to Acquire AkzoNobel
PPG has withdrawn its proposal to combine with AkzoNobel.
“We were hopeful throughout this process that AkzoNobel’s Boards would see the merits of our compelling proposal to combine our two great companies and create significant shareholder value and a more sustainable business for the future. We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general,” said McGarry. “We made a final attempt for engagement late last week and through a letter to AkzoNobel. In that letter, we addressed AkzoNobel’s stated commentary around value, certainty, timing and stakeholder considerations, and provided additional and specific commitments and assurances including a significant break-fee and an offer to negotiate a nominal price increase as part of an agreed transaction. However, AkzoNobel’s Boards have consistently refused to engage and did not respond to our call or letter. As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time.”
Key Happenings in 2016
• PPG completed four acquisitions, increasing its geographic and product scope: MetoKote (U.S. coatings services), Univer (Italy architectural coatings), Deutek (Romania architectural coatings, closed in January, 2017) and Futian Xinshi (China automotive refinish, closed in January, 2017).
• The completion of business divestitures, including the flat glass and European fiber glass businesses and PPG’s ownership interest in two Asian fiber glass joint ventures,resulting in approximately $1.1 billion of total cash proceeds.
• The completion of a $20 million investment to build an electrocoat coatings blending center at its resin manufacturing facility in Zhangjiagang, China.
• The completion of a $10 million coatings center of excellence at its Tianjin, China, campus to serve automotive decorative parts manufacturers.
• The completion of an $8 million investment at its global Coatings Innovation Center in Allison Park, Pennsylvania to expand technical capabilities.