Pittsburgh, Pennsylvania – PPG, a supplier of paints and other automotive products, has announced it will close more plants and terminate more jobs as part of a global restructuring plan.
The company cited global economic conditions, low demand, and acceleration of cost savings from the SigmaKalon business it acquired in 2008 as reasons for the move. The planned actions are expected to save approximately US$60 million in 2009, growing to an annual rate of about $140 million thereafter.
Initially, the company will close a paint manufacturing operation in France, several smaller production, laboratory, warehouse and distribution facilities across PPG’s businesses and regions, and eliminate approximately 2,500 jobs globally. The largest portion of the cost reduction will be in the company’s automotive OEM coatings and industrial coatings business units, which have been particularly hard hit by severe declines in demand.
Last September, PPG announced a restructuring plan that included closing several facilities, including a coating manufacturing plant in Clarkson, Ontario, and a glass manufacturing facility in Owen Sound, Ontario.