PPG invests $11 million to double powder coatings capacity in Mexico

Rhea-AI Summary

PPG announced a significant investment of $11 million to double the production capacity at its powder coatings plant in San Juan del Rio, Mexico. This expansion, due for completion by mid-2023, aims to meet growing demand for powder coatings. New manufacturing technology will enhance production efficiency, improve service levels, and enable local manufacturing of innovative products, including ENVIROCRON® High Transfer Efficiency and Envirocron Extreme Protection Edge. This move reflects PPG's commitment to growth in Mexico and the powder coatings market.

Positive

• Investment of $11 million to double production capacity.
• Enhanced manufacturing technology improving efficiency and service levels.
• Capability to locally manufacture innovative powder coatings currently sourced from the U.S.

Negative

• None.

MEXICO CITY--(BUSINESS WIRE)-- PPG (NYSE: PPG) today announced that it will invest $11 million to double the production capacity of its powder coatings plant in San Juan del Rio, Mexico. The expansion project is expected to be completed by mid-2023 and will allow the plant to meet the expected future demand for powder coatings in Mexico.

“With this investment, the plant will have new, state-of-the-art manufacturing technology, enhancing production practices and process flow,” said Guillermo Peña, PPG director, Industrial Coatings, Mexico. “It will further improve the plant's productivity and benefit our customers with improved service levels and faster response.”

The project will involve the installation of new production lines, upgrades to existing equipment and increased application capabilities. The increase in production will also allow PPG to locally manufacture new, innovative powder coatings products that are currently supplied from the U.S., including the following:

• ENVIROCRON® High Transfer Efficiency (HTE) powder coatings for complex, difficult-to-coat surfaces
• Envirocron Extreme Protection Edge powder coatings for improved edge corrosion performance in one coat
• Envirocron HeatSense low-temperature-cure powder coatings for wood-based substrates and metals
• CORAFLON® Platinum powder coating for architectural aluminum extrusions

“This expansion reaffirms PPG's confidence in Mexico and the strategic role of the San Juan del Rio site for the powder coatings business,” said Kevin Braun, PPG vice president, global Industrial Coatings. “Powder coating technology is becoming a more functional and profitable option for many customers due to its superior protection, sustainable qualities, and higher transfer efficiency compared to liquid coating technology.”

Powder coatings are a sustainable product offering with low VOC emissions, enhanced durability, high transfer efficiency and the ability to be reclaimed or reused during application. They are an important part of the company’s commitment to achieve 40% of sales from products and processes that have improved sustainability by 2025.

The expansion plan for PPG’s San Juan del Rio powder plant, which meets the key IATF-16949 quality certification, is the latest in a series of actions that underline PPG’s commitment to investing in further growth for powder coatings. Earlier in 2022, PPG acquired Arsonsisi’s powder coatings manufacturing business, and in 2020, PPG purchased Alpha Coating Technologies, a manufacturer of powder coatings for light industrial applications and heat-sensitive substrates.

PPG: WE PROTECT AND BEAUTIFY THE WORLD®

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty materials that our customers have trusted for nearly 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 75 countries and reported net sales of $16.8 billion in 2021. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

Coraflon, Envirocron, the PPG Logo and We protect and beautify the world are trademarks of PPG Industries Ohio, Inc.

CATEGORY Corporate

View source version on businesswire.com: https://www.businesswire.com/news/home/20220823005208/en/

Media Contact:

Mark Silvey

Corporate Communications

+1-412-434-3046

silvey@ppg.com

Investor Contact:

John Bruno

Investor Relations

+1-412-434-3466

jbruno@ppg.com

investor.ppg.com

Source: PPG

FAQ

What is PPG's recent investment in San Juan del Rio, Mexico?

PPG announced an $11 million investment to double the production capacity of its powder coatings plant in San Juan del Rio, Mexico.

When is PPG's San Juan del Rio plant expansion expected to be completed?

The expansion project at PPG's San Juan del Rio plant is expected to be completed by mid-2023.

What new products will be manufactured at PPG's expanded plant in Mexico?

The expanded plant will manufacture products like ENVIROCRON® High Transfer Efficiency and Envirocron Extreme Protection Edge powder coatings.

What is the significance of PPG's investment in powder coatings?

The investment underscores PPG's confidence in Mexico and aims to enhance its presence in the growing powder coatings market.

What benefits will PPG's plant expansion provide?

The expansion will improve production practices, increase productivity, and enhance service levels for customers.