PPG Doubling Mexico Powder Coatings Production

MONDAY, AUGUST 29, 2022


Global coatings company PPG announced last week that it plans to invest $11 million to double the production capacity of its powder coatings plant in San Juan del Rio, Mexico. According to the release, the project will involve the installation of new production lines, upgrades to existing equipment and increased application capabilities.

“With this investment, the plant will have new, state-of-the-art manufacturing technology, enhancing production practices and process flow,” said Guillermo Peña, PPG Director, Industrial Coatings, Mexico. “It will further improve the plant's productivity and benefit our customers with improved service levels and faster response.”

Production increases will also reportedly allow the company to locally manufacture new powder coatings that are currently supplied in the U.S., including:

  • ENVIROCRON High Transfer Efficiency (HTE) powder coatings for complex, difficult-to-coat surfaces;
  • Envirocron Extreme Protection Edge powder coatings for improved edge corrosion performance in one coat;
  • Envirocron HeatSense low-temperature-cure powder coatings for wood-based substrates and metals; and
  • CORAFLON Platinum powder coating for architectural aluminum extrusions.

“This expansion reaffirms PPG's confidence in Mexico and the strategic role of the San Juan del Rio site for the powder coatings business,” said Kevin Braun, PPG Vice President, Global Industrial Coatings. “Powder coating technology is becoming a more functional and profitable option for many customers due to its superior protection, sustainable qualities, and higher transfer efficiency compared to liquid coating technology.”

An important part of the company’s commitment to achieve 40% sales from products and processes that have improved sustainability by 2025, the powder coatings offer low VOC emissions, enhanced durability, high transfer efficiency and the ability to be reclaimed or reused during application. 

PPG reports that the plan for the San Juan del Rio powder plant expansion meets the key IATF-16949 quality certification. It is also the latest in a series of actions for the company’s investment to grow its powder coatings, including the acquisitions of powder coating manufacturer businesses Arsonsisi and Alpha Coating Technologies.

The expansion project is expected to be completed by mid-2023.

PPG Powder Coating Acquisitions

In March 2020, PPG announced it had completed its acquisition of powder coatings manufacturer Alpha Coating Technologies, LLC, after revealing it was in progress of acquiring the company the month prior.

Alpha primarily manufactures, develops and promotes the sale of its powder coatings, designed for light industrial applications, medium-density fiberboard and heat-sensitive substrates. However, the company also manufactures powder coatings for metal and other light industrial applications.

Alpha was founded in 2000 and employed approximately 35 people at its operations in West Chicago, Illinois, at the time. Financial terms for the acquisition were not disclosed.

At the beginning of February this year, PPG officially entered into an agreement to acquire the powder coatings business of Arsonsisi. The Milan, Italy-based company is reported to be a leading supplier of specialty powder coatings for the architectural and industrial markets. In 2021, the Arsonsisi powder business had sales of approximately $15 million.

As part of the transaction, PPG will acquire Arsonsisi’s highly automated, small- and large-batch capable powder manufacturing plant in Verbania, Italy.

After the acquisition was completed, which happened during the first quarter of this year, PPG was enabled to expand its powder coatings offering in the Europe, Middle East and Africa (EMEA) region to include metallic bonding. The acquisition also aligns with PPG’s goal to have 40% of its sales by 2025 from sustainably advantaged products.

Financial terms of the acquisition were not disclosed.

   

Tagged categories: Asia Pacific; Business management; Business matters; Business operations; Coating Materials; EMEA (Europe, Middle East and Africa); Expansion; Industrial powder coating; Latin America; Manufacturing Plant; North America; Powder Coatings; Powder coatings; PPG; Program/Project Management; Z-Continents

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