PPG to build St. Petersburg float plant says city

PPG Industries reportedly plans to build four float plants in Russia for auto and building glass; the first plant, with an annual production capacity of 35,000 tons, will begin operation in December 2…

PPG Industries reportedly plans to build four float plants in Russia for auto and building glass; the first plant, with an annual production capacity of 35,000 tons, will begin operation in December 2007 in St. Petersburg, according to the city authorities. The project will be realized with the participation of the Baltic Glass Company (BGC), an affiliate of Russkaya Sodovaya Kompaniya (RSK). PPG will contribute technology and funds to the project. Investments into the project will total EUR 220 million; profitability is expected within six to eight years. The information was confirmed by BGC although there was no comment from the American office of PPG. Market operators explain PPG“s decision to build its first Russian plant in St. Petersburg on the lack of float glass producers in the region. An unnamed representative of Pilkington explained the choice of the site near St. Petersburg on the fact that Toyota will build a plant there by 2007. According to estimates by the Moscow Institute of Glass, annual demand for glass in the North-West region is about 170,000 tons, while the total Russian market consumes about 900,000 tons. According to Finam estimates, this market is growing by 35% a year because of the growth in vehicle production and greater building volumes.