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PPG Announces Houston Plant Closure

Tuesday, June 26, 2018

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Pittsburgh-based global coatings manufacturer PPG is planning to close a Houston manufacturing plant, according to documents filed with the Texas Workforce Commission.

The Houston Business Journal reports that in a Worker Adjustment and Retraining Notification Act letter, PPG announced that the closure will impact 52 jobs, and cuts will begin on Nov. 30 at the facility, which will officially close Feb. 28, 2019.

PPG confirmed the closure in a statement to Durability + Design News Monday (June 25).

PPG

Pittsburgh-based global coatings manufacturer PPG is reportedly closing a Houston manufacturing plant, according to the Texas Workforce Commission.

Several management and maintenance employees will remain on staff through April 2019, however. All affected employees will reportedly receive severance pay based upon years of service.

According to the Journal, PPG cited “multiple factors, including overcapacity, slow overall growth and loss of distribution at Lowe’s” as reasons for the closure.

Related Announcements

In March of this year, Lowe’s Companies Inc. announced that it was expanding its partnership with The Sherwin-Williams Company, making Lowe’s the only nationwide home center to offer stain brands such as Minwax, Cabot and Thompson’s Water Seal, in addition to paintbrush brand Purdy and spray paint brand Krylon. The deal also made Sherwin-Williams the only nationwide supplier to Lowe’s.

The following month, however, PPG announced a deal of its own with The Home Depot, which said it would begin offering PPG’s Olympic brand stains in all of its nearly 2,000 stores across the United States. The line includes PPG’s Olympic Maximum, Olympic Elite and Olympic Waterguard. The Home Depot continues to offer Behr consumer paints in addition to PPG products.

Following the respective box store announcements, PPG revealed in early May that it plans to cut more than 1,000 jobs in a “restructuring effort,” citing rising raw material cuts and the company’s ouster from Lowe’s.

Mark Silvey, PPG’s director of corporate communications, told D+D News via email that the Houston closure is part of a bigger plan.

“PPG is closing its Houston, Texas, facility as part of ongoing efforts to optimize its supply chain footprint and better service its customers,” Silvey said. “While decisions such as this are difficult, this action is necessary to ensure that our cost structure is appropriate for business conditions and that our operations remain competitive.”

Earlier this month, PPG announced plans for a new distribution center in Flower Mound, Texas, (about 30 miles outside of Dallas) and in that announcement noted that the company “recently invested approximately $9 million to open 14 stores in the Dallas-Fort Worth area, bringing the total to nearly 40 PPG Paints stores in the region.”

   

Tagged categories: Business matters; Business operations; Jobs; Personnel; PPG

Comment from Tom Schwerdt, (6/26/2018, 8:05 AM)

Is this the former Monarch plant with the lab attached which PPG had purchased years ago? I recall that they did produce architectural coatings there.


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