PPG announces precipitated silica price increase

Due to an unforeseen rise in global demand, PPG continues to experience triple-digit percentage cost increases in sulfuric acid, which is used in the production of our silica products,” said Paula Shepard, PPG general manager, silica products. “The magnitude of these increases over a dramatically short period of time, as well as the continued escalation of natural gas and transportation costs, have significantly impacted operating expenses to a level well beyond what can be absorbed internally.” PPG has implemented production efficiency measures and cost-saving initiatives to minimize costs over the years, but these efforts are not enough to offset the more than 200-percent global price increase in sulfuric acid, Shepard said. “It appears that this inflationary environment will continue for the foreseeable future.This unique situation of historic cost increases requires immediate and swift action to ensure that PPG remains a viable and leading supplier of high-quality precipitated silica products,” she said.



The amount of each increase will vary by product in accordance with cost inflation factors. The company will continue to evaluate raw material and energy costs for silica products on a quarterly basis and adjust pricing as necessary.



Pioneering the development of synthetic precipitated silicas, PPG became one of the first manufacturers to bring them to market in the 1930s. Today, the firm is a leading provider of silica to the battery separator, carrier, coatings, rubber and tire segments.



About PPG

Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company has more than 150 manufacturing facilities and equity affiliates and operates in more than 60 countries. PPG’s sales in 2007 were $11.2 billion. SigmaKalon, a worldwide coatings producer based in Uithoorn, Netherlands, that PPG acquired Jan. 2, 2008, had 2007 sales of $2.9 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.



Hi-Sil and Lo-Vel are trademarks of PPG Industries.



Contact:

Brande Juart

PPG Silica Products

724-325-5203

juart@ppg.com