PITTSBURGH--(BUSINESS WIRE)--PPG Industries (NYSE:PPG) and Henan Billions Chemical Co., Ltd., today held a ceremony to mark the completion of Henan Billions’ titanium dioxide (TiO2) manufacturing and research facility in the Henan Province of China.
Scheduled to begin production in the first quarter 2015, the facility will manufacture significant volumes of TiO2 using a chloride-based process. The 366,000-square-meter plant is expected to produce up to 100,000 metric tons of TiO2 per year, and has capabilities to expand capacity. PPG intends to use TiO2 manufactured at the new facility in the production of paints and other coatings. Additionally, the new site features a 12,000-square-meter enterprise technology center, which will enable close collaboration by the two companies to accelerate development, testing, and qualification of next generation chloride-based TiO2 from the newly commissioned plant.
Attending the ceremony from Henan Billions was Xu Gang, Chairman of the Board; Tan Ruiqing, Deputy Chairman of the Board; and Han Jianhua, General Manager. Attending the ceremony on behalf of PPG was executive vice president, Viktoras Sekmakas; chief technology officer and vice president, coatings research and development, Charles Kahle; and vice president, purchasing and logistics, Stephen Lampe.
“PPG values its partnership with Henan Billions and is pleased with the additional resources the new facility will provide for both companies. The pre-production batches at the facility have scaled up well and we are in the final stages of qualifying commercial quantities of product. With the quality demonstrated to date, PPG plans to significantly increase its purchase of TiO2 from the facility,” said Kahle. “This facility and our partnership with Henan Billions exemplify PPG’s commitment to securing the global supply of titanium dioxide needed to support our business.”
Completion of the facility follows an agreement established in 2012 between PPG and Henan Billions under which PPG licensed certain chloride-based technologies to Henan Billions. PPG also established a long-term supply agreement to purchase TiO2 from Henan Billions.
About Henan Billions Chemicals Co., Ltd.
China-based Henan Billions Chemicals Co., Ltd., produces and sells titanium dioxide and zirconium. The company is located in Jiaozuo City, Henan Province, and had 2011 sales of about $300 million. Its shares are traded on the Shenzhen stock exchange.
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PPG Industries' vision is to continue to be the world’s leading coatings and specialty materials company. Through leadership in innovation, sustainability and color, PPG helps customers in industrial, transportation, consumer products, and construction markets and aftermarkets to enhance more surfaces in more ways than does any other company. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Reported net sales in 2013 were $15.1 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com and follow @PPGIndustries on Twitter.
Statements in this news release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 reflecting the company’s current view with respect to future events or objectives and financial or operational performance or results. The forward-looking statements contained herein include statements relating to future TiO2 production by Henan Billions and the future relationship between PPG Industries and Henan Billions. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including project start-up risks, future changes in supply and technical collaboration arrangements between PPG Industries and Henan Billions, and the other risks and uncertainties discussed in PPG Industries’ periodic reports on Form 10-K and Form 10-Q, and its current reports on Form 8-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of their initial issuance, and PPG Industries does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law.
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