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
BASF has signed an agreement to sell its extruded polystyrene (XPS) Styrodur business to Karl Bachl Kunststoffverarbeitung, a fellow German company, as part of its strategy to focus on expandable polystyrene (EPS).
The approximately 50 employees involved in production, marketing, and sales will remain with BASF.
Barentz, a player in the speciality ingredients sector, has appointed Derk Jan Terhorst as group chief executive officer, effective immediately. Terhorst succeeds Terry Hill, who served as Interim CEO since May 2024. With over three years of experience at Barentz as Group CFO, Terhorst brings a robust background in financial management and strategic oversight.
Former Dow president and CEO Paul Oreffice died on Dec. 26 at his home in Paradise Valley, Arizona. He was 97. During Oreffice’s tenure at Dow, he is often credited with transforming the company from an American-focused industrial power into a global leader in chemicals and plastics.
