Glasslinks.com

Glass Business News 

March, 2000

PPG Divests Interests in Chinese Glass Operations

Decision to Concentrate Resources on North American Biz 

    Asahi Glass Co., Tokyo, has acquired PPG Industries' minority interests in three Chinese glass businesses in which the companies partnered with others. A Chinese firm acquired Asahi's and PPG's interests in a fourth.

    Terms of the transactions were not disclosed. PPG's decision to withdraw, announced in late 1997, was attributed to inadequate revenues resulting from China's excessive industrywide glass production capacity.

    The divestments do not affect PPG's other business activities in China, including production and sale of amorphous silicas and automotive, industrial and packaging coatings.

    Executive Vice President Frank A. Archinaco said disposal of PPG's Chinese glass interests, as well as the 1998 sale of European flat and automotive glass operations, "were strategic decisions that enable us to better utilize resources for our vigorous glass business in North America, where we are the industry leader and from which we continue to serve glass customers around the world."

    Through Hong Kong joint venture Pennvasia Ltd., which Archinaco said will be dissolved, Asahi and PPG each owned 30 percent of Dalian Float Glass Co., a primary flat glass producer at Dalian, and Beijing Pennvasia Glass Co., a tempered glass and insulating glass unit maker at Tongxian. Equity transfers involving these firms was completed last month.

    Also through Pennvasia, PPG and Asahi each held 26 percent interests in Qinhuangdao Haiyan Safety Glass Co., a Qinhuangdao automotive glass maker. Approval by Chinese authorities of this equity transfer is expected within a few weeks.

    Pennvasia's 50 percent interest in primary glass manufacturer Guangdong Float Glass Co. (GFG) at Shekou was sold in December to Goodland Enterprises, Inc., a Hong Kong-registered company formed by three of GFG's original Chinese partners.

source: PPG Press Release