12 January, 2024 16:29:06 IST 
PPG, the US-based supplier of paints, coatings, and speciality materials, is exploring divestment of its silica products business. The company said it has engaged Morgan Stanley & Co. LLC as financial advisor to “assist in a review of strategic alternatives” for this business.
PPG’s Chairman and CEO, Mr. Tim Knavish, said, “Given the businesses distinct product portfolio, customer base and operating characteristics, we believe that it may be better suited to operate as a core business within another company or as a standalone entity”.
PPG’s silica products business, which operates within the company’s specialty coatings and materials strategic business unit, manufactures and supplies precipitated silica products to major manufacturers around the world as performance-enhancing additives. In 2023, the silica products business represented between 1-2% of PPG’s total net sales.
PPG expects to complete the review of strategic alternatives by mid-2024. “There is no assurance that the review will result in any transaction or other outcome. PPG does not intend to disclose developments or provide updates on the progress or status of the review unless and until it deems further disclosure is appropriate or required,” a company press said.
The silica products business is led by about 350 employees and manufactures products through dedicated facilities in Lake Charles, Louisiana (USA) and Delfzijl, The Netherlands. In addition, there is small batch processing at a portion of a PPG facility in Barberton, Ohio (USA) and part of a PPG facility in Monroeville, Pennsylvania (USA) that includes a laboratory, pilot plant, and the leadership and administrative team offices for the business.
