PPG Industries Inc., the world's leading diversified manufacturer, announced five acquisitions in the second quarter in order to raise its market share in key coatings markets.
These moves begin to make an impact on its sustained and rapid growth. According to the recently released second quarter report, PPG realized net income of US$280 million on sales revenue of US$2.8 billion, a year-on-year growth of 21 percent and 6 percent respectively. Its coatings business in Asia grew 21 percent in the second quarter.
PPG's Asia Pacific development strategy and target is to achieve US$2 billion sales within 5 years. To achieve this, it acquired Crown Coatings of Singapore, a leading wood coatings company and moved it to China for production. As for architectural coatings market, it expanded its distribution channels by acquiring certain assets of Shanghai Sunpool, who has been the sole distributor for its interior coatings brand Master's Mark Paints. For fiber glass products, PPG and Nanya Plastics Corporation have built the world's largest fiber glass manufacturing plant in Kunshan, with a potential output capacity of 120,000 metric tons.
"Looking ahead, funding growth initiatives remains a priority for our free cash flow," said Charles E. Bunch, the company's chairman and chief executive officer.
(China.org.cn August 23, 2006)
