PITTSBURGH - PPG Industries Inc. (NYSE:PPG) has announced plans to invest $300 million in its North American manufacturing operations, aiming to bolster production of automotive coatings to meet rising industry demand. This investment will be distributed over four years starting in 2024.
The centerpiece of the investment is the construction of a new 250,000-square-foot manufacturing facility in Loudon County, Tennessee. This plant, PPG's first in the U.S. in over 15 years, is set to generate over 11 million gallons of paint and coatings annually and will provide around 130 full-time jobs once fully operational.
Slated to begin construction in August 2024, the plant is expected to be completed in 2026. While initially focusing on automotive coatings, the facility may later serve additional industrial sectors.
The investment will also improve operations at existing PPG sites in Cleveland, Ohio, and San Juan Del Rio, Mexico. Upgrades will include new equipment and processes aimed at enhancing manufacturing efficiency, such as improved processing times and the expansion of sustainable solutions like waterborne coatings.
Tim Knavish, PPG's chairman and CEO, emphasized the company's commitment to innovation and customer service, stating that the new facility and site enhancements will enable PPG to deliver high-quality products more efficiently. Alisha Bellezza, PPG's senior vice president of automotive coatings, highlighted the strategic location of the Tennessee plant, noting its proximity to automotive manufacturers and the supply chain benefits it will provide.
Tennessee Governor Bill Lee welcomed PPG's investment, citing it as a testament to the state's ability to attract global companies and create opportunities for Tennesseans.
The company, with a history of over 140 years, operates in more than 70 countries and reported net sales of $18.2 billion in 2023. PPG serves a diverse range of markets, including construction, consumer products, industrial, transportation, and aftermarkets.
The information is based on a press release statement from PPG.
InvestingPro Insights
PPG Industries Inc. (NYSE:PPG) has made headlines with its substantial investment in North American operations, reflecting a strong commitment to growth in the automotive coatings sector. To provide a deeper financial context for this strategic move, here are some key metrics and insights from InvestingPro:
InvestingPro Data:
- Market Cap (Adjusted): $31.48B USD
- P/E Ratio (Adjusted) last twelve months as of Q1 2024: 20.19
- Dividend Yield as of mid-April 2024: 1.94 %
InvestingPro Tips for PPG Industries highlight the company's financial stability and investor appeal:
1. PPG has a notable track record of dividend reliability, having raised its dividend for 53 consecutive years, signaling a strong commitment to returning value to shareholders.
2. Despite some analysts revising their earnings expectations downwards for the upcoming period, the company has been profitable over the last twelve months and is predicted to remain profitable this year.
For readers looking to delve further into PPG's financial health and future prospects, InvestingPro offers additional insights and tips. With a total of 8 InvestingPro Tips available for PPG, investors can gain a comprehensive understanding of the company’s financial nuances. To access these valuable insights and benefit from the full range of financial analytics, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/PPG.
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