PPG Building New TN Manufacturing Plant

THURSDAY, MAY 23, 2024

As part of a $300 million investment in advanced manufacturing in North America, global coatings company PPG plans to build a new paint and coatings manufacturing plant in Loudon County, Tennessee.

The 250,000-square-foot facility will reportedly be PPG’s first new manufacturing plant to be built in the United States in more than 15 years.

About the Investment

According to the company, the plant will initially produce paints and coatings products and solutions for automakers and automotive parts suppliers, but could eventually supply other industrial segments, including transportation, heavy duty equipment, building and construction and consumer products.

Once fully operational, the facility will employ approximately 130 full-time employees and produce more than 11 million gallons of paint and coatings annually.

Additionally, the investment will enhance and expand activities at existing facilities in Cleveland and San Juan Del Rio, Mexico. Funding will reportedly cover new equipment and processes that will increase manufacturing efficiencies to result in improved processing times and expand PPG’s capabilities to meet growing demand for sustainable solutions, such as waterborne coatings.

PPG explains that, while the investment represents a strategic, growth-focused investment, it does not represent a change in the company’s overall capital investment spending levels, which will be consistent with prior years.

“Innovation is at the forefront of PPG’s purpose in protecting and beautifying the world. These investments continue to modernize and digitize our manufacturing capabilities, and demonstrate PPG’s continued focus on quality and service to our customers as the premier single-source coatings supplier for every vehicle surface,” said Tim Knavish, PPG chairman and chief executive officer.

“As we continue to see a resurgence of manufacturing in the U.S., PPG will leverage this new facility and our other site investments to maximize quality, improve operational efficiency, and reduce product complexity within our manufacturing footprint.”

“As the automotive industry continues to transform, we’re excited to expand our manufacturing capabilities to meet the evolving needs of our automotive customers,” said Alisha Bellezza, PPG senior vice president, automotive coatings.

“The strategic location of PPG’s new facility in Tennessee also creates a more efficient and effective supply chain with close proximity to many automotive manufacturing facilities, which will further enhance the service experience for our customers.”

Construction of the facility will begin this year in August, with completion anticipated for 2026, according to PPG.

“Tennessee is leading the nation in attracting top global brands like PPG. I welcome PPG and thank this company for its commitment to creating greater opportunity for the Tennesseans across the Greater Knoxville region,” said Tennessee Governor Bill Lee.

Recent PPG Business News

Last month, PPG reported its 2024 first quarter net sales of about $4.3 billion, a 2% decrease from the year prior and an organic sales decline of 2% year-over-year. Net sales for the quarter were reportedly roughly $4.31 million, a decrease of about 2% compared to 2023.

For the first quarter, reported net income from continuing operations was $400 million, or $1.69 per diluted share, up exponentially from 2023’s first-quarter figure of $264 million, or $1.11 per diluted share.

First-quarter sales for PPG’s Performance Coatings segment totaled about $2.61 billion, down from approximately $2.63 million, or about 1%, compared to 2023. The net sales decrease was reportedly a result of higher selling prices and favorable foreign currency translation were offset by lower sales volumes.

Compared to the prior year’s performance in the same quarter, net sales for PPG’s Industrial Coatings segment were about $1.7 billion, down 3% from 2023. The decrease was reflected in lower selling prices and slightly lower sales volumes. 

According to the press release, PPG anticipates that organic sales growth will be up in the low single digits for the second quarter of 2024, as well as fiscal year 2024.

Back in February, PPG also revealed that it started the process to review strategic alternatives for its architectural coatings business (part of the Performance Coatings segment) in the United States and Canada. Goldman Sachs & Co. LLC has reportedly been engaged as the financial advisor.

The business manufactures and sells interior and exterior paints, stains, caulks, repair products, adhesives and sealants. It also reportedly includes certain light-duty protective coatings products that are primarily sold through company-owned stores and manufactured through a common factory footprint.

In 2023, the architectural coatings business in the U.S. and Canada reportedly represented approximately 10% of PPG’s total net sales. PPG explains that the timing and outcome of the strategic review is “uncertain,” and that there is no assurance that the review will result in any transaction or other outcome.


Tagged categories: Asia Pacific; Automotive coatings; Business management; Business matters; Business operations; Coatings; Coatings manufacturers; EMEA (Europe, Middle East and Africa); Industrial coatings; Industry News; Latin America; Manufacturing Plant; North America; Paint; PPG; Program/Project Management; Z-Continents

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