(China Daily)
Updated: 2007-11-03 10:17

Leading coatings manufacturer PPG Industries Inc said it will spend US$50 million to expand output to 100,000 tons a year at its Tianjin plant.

The company plans to expand the Tianjin Economic and Technological Development Area (TEDA) facility from 40,000 to 100,000 sqm to meet the nation's growing demand for automotive and industrial coatings.

PPG will spend US$10 million on the new project in the first phase and around US$40 million in the second. Total investment in the facility is expected to reach US$100 million.

Production capacity for automotive and industrial coatings will increase from 60,000 tons to more than 100,000 tons per year when the project is complete.

"Airbus, Motorola and some local automotive companies are PPG's key customers," said Viktor R Sekmakas, vice-president of the Asia-Pacific region for PPG. "The new project will address PPG's urgent need to expand production, better satisfy customer demand and help PPG to maintain its rapid development."

PPG will also set up a research and development center in the second phase at the Tianjin facility, focusing on environmentally friendly products and local services.

"The Tianjin plant will continue to be PPG's largest production facility in the Asia-Pacific region. Its success has given us continued confidence to invest in China as well as in the Asia-Pacific region," said William A Wulfsohn, senior vice-president of PPG.

PPG said it sees the Tianjin facility as a base for further development in the Asia-Pacific region.

"Tianjin is an important engine that has been driving our overall growth in China. Expanding the plant here will help PPG provide value-added services to some of our key customers in Tianjin, such as Airbus," said Sekmakas.

PPG set up its coatings business in China in 1994. The Tianjin facility was its first investment in the nation. In September, PPG had revenue of US$100 million for a single month, 23 percent of which came from the Tianjin area.