PPG, Kansai in Negotiations to Form Alliance

Officials from both companies said the objective of the alliance would be to respond quickly and effectively to the demands and requirements of the global automotive original equipment manufacturer (OEM) industry, and this should assist PPG and Kansai in serving their traditional automotive OEM customers.PPG and Kansai would set up marketing and sales operations initially in North America and Europe for Japanese automotive OEMs. PPG and Kansai, then, would set up marketing and sales operations in Shanghai, China, and later in other Asian countries to serve all of the region’s automotive OEM customers.

Pittsburgh-based PPG is the world’s leading manufacturer of transportation coatings and a major global supplier of industrial and packaging coatings, and a leading North American producer of architectural coatings. In addition, PPG manufactures flat and fabricated glass, continuous-strand fiber glass and chemicals. Sales were US 8.8 billion for 2003.

Kansai Paint, established in 1918 and headquartered in Osaka, Japan, is a leading paint company supplying a wide range of paints and coatings products, in Japan and abroad. Kansai Paint is a leading supplier of automotive coatings products in Japan and Asia, including China.