PPG Industries Inc.
) has introduced a new clearcoat- MC 2800 EUROPLUS Speed Clear- to
its line of OMNI Plus products. It is a 4.2 VOC (volatile organic
compound) high-solids clearcoat that is designed to meet the
performance and value priorities of its consumers. The company
stated that the product provides excellent gloss and appearance
while complying with National Rule. It also has a fast cycle time.
The new product promises fast dry times, high productivity, and
exceptional finish at a reasonable price. This makes it a
value-based product, providing high customer satisfaction and
increased efficiency in repair shops.
According to Jennifer Boros, PPG's segment manager, MC 2800 is easy
and flexible to use and adjusts to production conditions.
The Omni Plus range is an extension of the Omni basecoat system and
consists of high-strength toners, special-effect diamond toners, a
basecoat converter and a mixing clear. All these increase the
performance of the Omni line of products.
PPG Industries remains focused on growing its business
inorganically through a number of acquisitions. The buyout of
) North American architectural coatings business - the
second-largest acquisition in the company's history - has expanded
its branded paint product offerings and scale in the North American
architectural paint market, which is expected to benefit from a
recovery in the construction market.
In a major move, PPG Industries recently agreed to buy Mexico's
leading paint company - Consorcio Comex S.A. de C.V. - for $2.3
billion. The acquisition will bolster its architectural coatings
business in Mexico and Central America.
Demand for PPG's aerospace and auto OEM coatings are expected to
remain strong this year. The company has a diversified product base
and looks to grow its businesses strategically along with
controlling costs. It should gain from continued strength across
North American automotive and aerospace markets.
Healthy fundamentals, strong acquisitions, cost controlling
measures and product innovations are expected to increase PPG's
sales and profit margins in the forthcoming quarters. However, the
company remains exposed to a still soft European market, raw
material cost pressure and currency headwinds.
PPG Industries currently holds a Zacks Rank #3 (Hold).
Other companies in the chemical space worth considering are
). Both currently carry a Zacks Rank #2 (Buy).
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