Coatings giant PPG Industries Inc. (NYSE: PPG) will be investing over $27 million to expand its San Juan del Rio, Qro., Mexico, coatings manufacturing plant. The project is expected to complete in 2015 and will mark another step toward enhancing the company's presence in Mexico.
PPG Industries will add four new buildings to the manufacturing complex in Mexico, featuring roughly 100,000 square feet of additional production and laboratory space. The additional facility will be hiring over 115 people, which will translate into a 30% increase in its workforce.
The development plan will incorporate eco-friendly designs that will provide natural light, intelligent lighting systems to maximize energy efficiency and water recycling capabilities.
This additional wing will enable PPG Industries to meet the growing demand for its coatings by automotive Original Equipment Manufacturer (OEMs), protective and marine, packaging and industrial customers in Mexico and local end-use markets.
The enhanced capacity will also increase PPG Industries' capability to serve the country's rapidly growing automotive manufacturing market with the globally accepted waterborne and compact process technologies.
On Mar 13, PPG Industries' protective and marine coatings business unit completed an important coating pipeline project for Africa Pipe Industries. The company supplied internal and external coatings for a 46 kilometer long, 2.1-meter diameter pipeline installed for South African utility, Rand Water.
A few days earlier, PPG Industries completed its earlier-announced acquisition of high-temperature-resistant and insulative coatings supplier Hi-Temp Coatings Technology Co., Inc., for an undisclosed price. The addition of Hi-Temp's products and technologies strengthens PPG Industries' protective and marine coatings business by offering a number of growth opportunities, notably in the petrochemical space.
All these endeavors undertaken by PPG Industries are enabling it move toward its goal of achieving growth by strategically handling its businesses at controlled costs. The company sees favorable market conditions across the aerospace and automotive end-markets in 2014.
PPG Industries currently carries a Zacks Rank #2 (Buy).
Other companies in the chemical industry worth considering include Methanex Corp. (NASDAQ: MEOH), Cytec Industries Inc. (NYSE: CYT) and The Dow Chemical Co. (NYSE: DOW). All three carry the same Zacks Rank as PPG Industries.
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