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PPG Plans New Architectural Coatings HQ

Wednesday, September 25, 2013

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PPG Industries will consolidate its newly expanded North American architectural coatings operation into a new headquarters in southwestern Pennsylvania and enlarge its coatings R&D operations elswhere.
 
The Pittsburgh-based multinational has announced that it will establish its North American architectural coatings business at a 120,000-square-foot facility in Cranberry Township, PA, consolidating operations from Louisville, KY; Dover, DE; and Strongsville, OH.
PPG Architectural Finishes
Photos: PPG

The new headquarters is driven by PPG's recent billion-dollar acquisition of AkzoNobel's North American Decorative Paints business.

PPG, which now bills itself as the world’s leading coatings and specialty products company, will also expand its current technology center in the Pittsburgh area, adding more than 300 new jobs in the two locations.

'An Important Step'

PPG's technology center in Harmar, PA, which currently includes its glass and fiberglass business and research and development activities, will add R&D for the North American architectural coatings business.

In doing so, it will relocate activities, personnel and equipment from PPG facilities in Springdale, PA, and Strongsville, OH, the company said

“Our plans to establish a central headquarters and R&D center for the company’s North American architectural coatings business in Pennsylvania are an important step in creating our newly expanded coatings business,”  PPG chairman and CEO Charles E. Bunch said in an announcement.

Founded in Pennsylvania (the first P in PPG originally stood for Pittsburgh), PPG has "called Pennsylvania home to its global headquarters for 130 years, and this further strengthens our presence in the state and affected counties," said Bunch.

Charles Bunch PPG World Headquarters

PPG's new architectural coatings headquarters and expanded R&D center "are an important step in creating our newly expanded coatings business,” said CEO Charles Bunch. The company's world headquarters are in Pittsburgh, PA.

"We appreciate the continued support of the governor and county leadership as we move forward with this important decision for our future operations.”

Expansion

The moves follow PPG's $1.05 billion acquisition of AkzoNobel's North American Decorative Coatings business in April.

The acquisition included all AkzoNobel North American architectural coatings manufacturing and distribution facilities, paint stores, product lines and employees related to the production, sale and distribution of architectural coatings in the United States, Canada and the Caribbean.

The deal added about 600 AkzoNobel-owned paint stores to PPG's portfolio, creating a combined network of about 1,000 company-owned stores serving North America; extended PPG's branded paint product offerings to more than 8,000 retail outlets; and expanded the company's presence among independent paint dealers.

Taking over the $1.5 billion business “notably expands our customer reach in all three major North American architectural paint distribution channels,” Bunch said when the deal was announced in December.

The purpose of the new and expanded facilities is to "consolidate AkzoNobel North American headquarters and U.S. lab facilities with PPG’s architectural coatings business in order to improve collaboration between employees and save travel time and expenses," PPG said.

PPG - Harmar, PA

PPG's glass and fiberglass technology center in Harmar, PA, will add research and development activities, personnel and facilities for the North American architectural coatings business.

"PPG’s operations in Canada and Puerto Rico are not affected by this consolidation."

$14M Investment

PPG expects to invest more than $14 million in infrastructure, equipment and employee training during the projects.

The company will also benefit from state investments. PPG received a funding offer from the state's Department of Community and Economic Development that includes a $1,250,000 Pennsylvania First Program grant; $618,000 in Job Creation Tax Credits; and a $42,750 Guaranteed Free Training grant that will be used to train its new workforce.

In addition, the Pennsylvania Industrial Development Authority is offering a $2 million loan to be repaid within 15 years.

“This acquisition underpins Pittsburgh as a place where Fortune 500 companies, such as PPG, are growing," said Allegheny Conference on Community Development CEO Dennis Yablonsky. “We’re pleased that PPG remains committed to southwestern Pennsylvania.”

Founded in 1883, PPG operates in nearly 70 countries around the world.

 

   

Tagged categories: AkzoNobel; Architectural coatings; Coatings technology; Decorative coatings; PPG; Research

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