Page 153 - CW E-Magazine (29-10-2024)

News from Abroad

RIGHT-SIZING STRATEGY
PPG divesting decorative paints business in US and

Canada; announces cost reduction steps

American coatings major, PPG, has our customers,” commented Mr. Tim
announced the sale of its architectural Knavish, PPG’s Chairman and CEO.
coatings business in the US and Canada
to buyout firm American Industrial The company said its cost reduction
Partners for about $550-mn. programme could result in annualised pre-
tax savings of approximately $175-mn
The company will also lay off 1,800 once fully implemented, including savings
employees in the US and Europe and of $60-mn in 2025.
close plants as part of a cost-reduction
programme. The programme focused business houses brands such as Dulux, “We are taking decisive self-help
on reducing structural costs in Europe Glidden, Olympic and Liquid Nails. It actions to reduce our overall cost struc-
and in certain other global businesses, represents only 10% of PPG’s consoli- ture. While these decisions are difficult,
along with other corporate expenses dated revenue and has lagged most other they are necessary to adjust our fixed
follows the company’s recent divest- end-markets in recent years. cost base and to right-size our company
ments. In August, the company said it following the two business divestitures.
would sell its silica products business “From a PPG perspective, this trans- None of these actions will impact our
to Polish chemical company, Qemetica action, along with the pending sale of ongoing investments or focus on organic
for $310-mn. The sale is expected to our silicas products business, demon- growth,” Mr. Knavish pointed out.
close in the last quarter of 2024. strates the active portfolio management
by the company and our Board. These PPG said its architectural coatings
The architectural coatings trans- divestitures further optimise our port- businesses in other regions around the
action, which is expected to close in folio by improving our organic growth world, including in Latin America,
late 2024 or early 2025, is the result of and financial return profiles and will Europe and Asia Pacific, where PPG
PPG’s evaluation of strategic alterna- result in increased capability to channel holds strong positions in a number of
tives for the business, which was first our growth resources to areas where key countries, remain core businesses
announced on February 26, 2024. The we have the strongest right to win with within the company’s portfolio.
BASF upgrades superabsorbent polymers facility

in Texas

BASF’s Petrochemicals division our customers to provide thinner and
has completed its upgrades for more dependable diapers and other
Superabsorbent Polymers (SAP) after a hygiene products to consumers,” said
$19.2-mn investment into its Freeport, Mr. Momin Birjis, BASF SAP Produc-
Texas (US) site. tion Manager at the Freeport site.

The project, which began in 2023, resulting in a lower carbon footprint BASF said the combination of the
involved the installation of new equip- associated with customer deliveries. new equipment and upgraded processes
ment to increase production rates and has led to an improved capability to
the optimisation of existing processes “These production process en- make higher performing SAPs while
at the SAP plant in Freeport. It also hancements will help improve the poly- simultaneously realising up to 20%
improved rail logistics capabilities mer swelling speed and overall absor- higher throughput and further improving
allowing for a reduction in truck traffic, bency properties of our SAPs, allowing overall expected asset reliability.

Chemical Weekly October 29, 2024 153

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