PPG has announced that it has signed an agreement for the sale of its European fiber glass operations to glass manufacturer Nippon Electric Glass Co. Ltd. (NEG).
The transaction is subject to completion of employee consultation processes, receipt of regulatory clearances and other customary closing conditions. PPG and NEG expect to close the transaction in the second half of 2016. Financial terms were not disclosed.
PPG employs approximately 550 people in its European fiber glass operations, which include manufacturing facilities in Hoogezand, Netherlands, and Wigan, England, and a research-and-development facility in Hoogezand. In 2015, sales for PPG’s European fiber glass operations were approximately $150 million. Upon completion of the transaction, PPG will continue to support the manufacturing operations with certain services, including bushing fabrication and engineering support.
PPG’s European fiber glass business manufactures reinforcement materials for thermoset and thermoplastic composite applications. It serves the transportation, energy, infrastructure and consumer markets.
“As part of NEG, these European fiber glass operations will continue to provide innovative solutions in this industry,” said Viktor Sekmakas, PPG executive vice president. “Upon completion of the transaction, NEG will take ownership of a business in which PPG has consistently invested to drive innovation in fiber glass technology, resulting in high-quality products. PPG remains focused on serving the needs of our fiber glass customers throughout this transaction.”
Net cash proceeds from the transaction will be used for general corporate purposes, according to PPG.