PPG Industries

PPG Plans to Restructure Wigan Glass Fiber Facility to Better Meet European Market Needs

(Shanghai China -- 10th November 2006)Monday, October 30, 2006, PPG Industries Wigan, England, fiber glass plant is proposing to transform its manufacturing processes and work force to direct its focus on the European market for single-end, direct-draw rovings. The proposed restructuring involves significant streamlining of the facility’s manufacturing processes at the site and, at the same time, a reduction of approximately 100 jobs by the end of March, 2007. The transformation’s objective is to enable the Wigan facility to be more competitive in select European markets, according to Steve Verdin, Wigan plant manager.

“Our entire two-furnace operation will be geared to meeting European customers’ growing needs in the wind energy, long-fiber thermoplastics, and high-pressure pipe industries,” Verdin said. “We intend to invest approximately $5 million in automated, state-of-the-art manufacturing capabilities to provide our customers with high-quality, direct-draw product at competitive prices.”

As part of the Wigan transformation, PPG will be shifting manufacture and supply of chopped-strand fiber glass mat to the PPG Sinoma Jin Jing Fiber Glass Zibo, Ltd., joint venture in Zibo, China. Manufacture of gun rovings has already been transferred to the Zibo site. Chopped-strand fiber glass mat is used to make various thermoset applications for the marine, electrical and construction markets. “PPG will continue to provide our European customers with consistently high-quality, competitively priced products and services from both Wigan and the PPG Sinoma Jin Jing joint venture,” said Hein Gaarenstroom, sales director, fiber glass, Europe. “We will be using our global network of manufacturing assets to service our customers in the most cost-effective way.”

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About PPG:

PPG Industries Inc. was founded in 1883 in Pittsburgh, USA. As a global manufacturing enterprise, it produces and sells coatings, glass, fiber glass, and chemicals and holds a leading position in the above areas. Up to now, PPG has set up more than 100 production facilities that employ approximately 30,800 employees in 21 countries. PPG has been listed on Fortune 500 for 51 years and is the world’s leading transportation coatings manufacturer, as well as the world’s leading manufacturer of industrial, aerospace and packaging coatings. Each year, PPG invests millions of dollars in developing products, processes, and the newest technology to meet the market requirements. PPG is one of the few publicly traded companies to pay its shareholders dividends continually since 1899, and has paid increased shares to shareholders for 35 consecutive years. PPG has not just first class products but also unique cooperate culture which prides its employees. According to Fortune, PPG ranked No. 1 in the “Global Most Admired”, chemical industries in 2004.

PPG is also one of the few global coatings companies that first invested in China in 1980s. In China, PPG produces and sells seven major products, including automotive coatings, industrial coatings, automotive refinishing coatings, packaging coatings, aerospace coatings, architecture coatings, and fiber glass. There are 7 plants in Tianjin, Suzhou, Kunshan and Zibo, and trading companies, offices, labs and training centers in Beijing, Shanghai, Suzhou, Guangzhou, and Shenzhen. So far in China PPG has invested more than USD300 million and has more than 2700 employees; in AP areas, the number of its employees exceeds 6700.

In China, the main customers of PPG Automotive coatings include GM, GE, Benz, Dongfeng Citroen, Dongfeng Peugeot, Chery, and Hainan Mazda. Nearly all auto manufacturers use PPG automotive coatings and technology. PPG Automotive Refinish ranks number one in China auto refinish and passenger car markets. In 2005, 70% of China’s more than 200,000 police wagons were refinished by PPG professional auto paints. As for packaging coatings, PPG provides coatings to such well-known international and domestic companies like Coca Cola, Pepsi, Lulu, Wangwang, etc. PPG provides aerospace coatings to Boeing, Air China, Southern Air, China Eastern, etc. One thing that is especially meaningful is that Air China used PPG coatings for the three 2008 Olympics Planes and China Eastern used the coatings for 2010 World Expo plane. Also, PPG provides industrial coatings to Haier, Nokia, Motorola, Whirlpool, Dell, etc. PPG architectural coatings are widely used in many well-known buildings such as the characters on Tian Anmen Square and the flag post, Beijing Oriental Plaza, Beijing International Exhibition Center, Beijing airport, Shanghai Jinmao Building, Shanghai Pudong International Airport, Shanghai Oriental Pearl Tower, Guangzhou Baiyun International Airport, Tianjin Jinhuang Building and Taida Building etc.

Besides coatings, PPG Fiber Glass also entered china market in 80’s and set up manufacturing sites successively in Taiwan Jiayi, jiangsu Kunshan and Shandong Zibo. In March 2006, the world biggest fiber glass furnace which was built up in Kunshan by 120M investment was put to production, boasting more than 70 thousands tons of output. In 2006, PPG invested jointly with Sinoma in Zibo a fiber glass plant with more than 200 thousands tons of annual output and an R&D center in Suzhou is under plan at the same time so as to support application problems for PPG’s customers in the Asia Pacific areas. PPG Fiber Glass has nine world-wide manufacturing sites, 4 R&D centers and a network of sales and technical support professionals. It manufactures continuous-strand fiber glass products which include chopped strand, direct draw, yarn, assembled roving and rolled goods, etc. These products are used in a wide range of applications such as transportation, energy, construction, electronic and many other industries.

In R&D, PPG invests billions of dollars each year to develop, improve products, process and technologies to adapt to the new markets. 39 percent of the company’s sales are from products that are five or fewer years old. Six times in the past six years PPG has received an R&D 100 Award and was presented annually by R&D Magazine for most significant technology-related new products and processes. All these achievements in R&D include:

–pioneered cationic electrodeposition automotive primers that have virtually eliminated rust

–developed barrier coatings to improve product shelf life and retain carbonation in beverages bottled in plastics

–introduced plastic photochromic eyewear lenses that automatically darken in sunlight

–formulated key pharmaceutical intermediates used for the critical treatment of life-threatening diseases

–introduced revolutionary insulated glass technology for residential doors and windows

–commercialized the world’s first powder clear-coat finish for cars

–developed resin-compatible fiber glass yarn for the electronics industry

For more info. please contact:

PPG Industries Beijing Office

Natasha Si

Unit 2001-2004, North Tower, Beijing

Kerry Centre, 1# Guanghua Road,

Chaoyang District, Beijing, China, 100020

Tel: +86 10 6561 9988 ext. 118

Email: natasha.si@ppg.com

EMG China

Michelle Yu

16H Majesty Building 138 Pu Dong Avenue

Shanghai 200120

Tel: +86 21 5887 8007 ext. 106

Email: myu@emgchina.com

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