Resumen de PPG buys Chinese automotive refinishes company
PPG expands in automotive; Special focus on Asia; Access to 200 distributors Pittsburgh, US-based PPG has bought a number of assets from China-based automotive refinish coatings company Futian Xinshi for an undisclosed amount.
PPG will acquire Futian's trademarks, product technology and customer list.
Based in Guangdong province, privately-owned Futian reported sales of around $15m in 2016, which were distributed throughout China via a network of over more than 200 suppliers.
"The acquisition of Futian will further enhance PPG's position in the growing Chinese automotive refinish coatings market," PPG's vice president of global automotive refinish, John Outcalt, said in a statement.
"Futian has a proven track record of growth and profitability by leveraging well-positioned brands, mature technology, low-cost operations and a solid-performing distribution base," he added.
Last week PPG reported a decline in its performance coatings division for Q4 2016, as net sales for fell 4% to $1.98bn, with income also down 4% at $239m y-o-y. Sales volumes were down less than 1% PPG added, although unfavourable foreign exchange rates reduced sales values down by around 3%, or $70m, y-o-y.
Automotive refinish sales grew organically by a low single digit percentage, PPG said, led by high demand in Europe.
PPG is a large consumer of pigment and filler minerals in its coatings products, most notably titanium dioxide (TiO2), in addition to iron oxide and kaolin.
