Sector News

PPG to cut 1,100 jobs by second quarter 2019

April 30, 2018
Chemical Value Chain

PPG Industries has announced a restructuring program that includes the elimination of 1,100 positions at the company, or 2.3% of the company’s global workforce. The cuts are in response to a loss in business at the company’s US architectural coatings business as well as sustained, elevated raw material inflation, PPG said in a regulatory filing.

A pretax restructuring charge of $80 million to $85 million will be recorded in the second quarter 2018 financial results, of which about $75 million to $80 million represents employee severance and other cash costs. The remainder represents the write-down of certain assets and other non-cash costs.

In addition, other cash costs of up to $35 million to $40 million are expected, consisting of incremental restructuring-related cash costs for certain items that are required to be expensed on an as-incurred basis of approximately $15 million and approximately $20 million to $25 million for items which are expected to be capitalized, PPG says. The company expects the cash payback of the restructuring program to be less than two years.

“These business-restructuring actions, while always difficult decisions, are needed to ensure that our cost structure is appropriate for business conditions and that our operations remain globally competitive,” a PPG spokesperson tells CW. He added that no additional details are available at this time.

In February, PPG suffered a setback when Lowe’s said it will stop selling PPG’s Olympic brand paints and stains later this year. Lowe’s signed a deal for Sherwin-Williams to become its exclusive US supplier for interior and exterior house paints. PPG said in February that sales at Lowe’s stores in the United States represent less than $300 million of its annual sales and that it would aggressively and appropriately adjust its cost structure to adapt to the change.

By Natasha Alperowicz

Source: Chemical Week

Related News

March 6, 2021

New catalyst makes styrene manufacturing cheaper, greener

Chemical Value Chain

Chemical engineering researchers have developed a new catalyst that significantly increases yield in styrene manufacturing, while simultaneously reducing energy use and greenhouse gas emissions.

March 6, 2021

Haldor Topsoe to build large-scale SOEC electrolyzer manufacturing facility

Chemical Value Chain

With efficiencies above 90%, Topsoe’s proprietary SOEC electrolyzers offer superior performance in electrolysis of water into hydrogen, when compared to today’s standard alkaline or PEM electrolyzers.

March 6, 2021

Chevron Phillips names new CEO 

Chemical Value Chain

Chevron Phillips Chemical announced that Bruce Chinn, currently president, Chevron Chemicals, will become chief executive officer. B.J. Hebert, currently executive vice president and chief operating officer, will become president and chief operating officer.

Send this to a friend