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PPG Finishes Mexican Coatings Manufacturing Unit Expansion

PPG Industries, Inc.PPG has declared the completion of a $27 million expansion of its San Juan del Rio, Queretaro, Mexico, coatings manufacturing facility. With this project, the company added 115 new jobs and held a grand ceremony that was attended by Queretaro State Governor Jorge Lopez Portillo Tostado and San Juan del Rio Mayor Fabian Pineda Morales.

The expansion involved the addition of four new buildings to the site, providing around 100,000 square feet of extra space for production, product development and quality testing. PPG Industries will be able to utilize the additional space to cater to the rising demand for its automotive original equipment manufacturer ("OEM"), packaging and industrial coatings by customers in Mexico.

Moreover, the facility was upgraded with renovated space for support services, meeting rooms, and cafeteria and lockers for employees. The new buildings also feature sustainable designs, which allow natural light to penetrate employee areas, use smart lighting systems to maximize energy efficiency, and incorporate water-recycling capabilities.

According to Adriana Macouzet, PPG general manager, Latin America - North, this investment is a significant step as Mexico is a major growing market for the company. Moreover, these new facilities enable the company to serve the automotive market with modern waterborne and compact-process technologies that are required by today's automakers.

PPG Industries is looking for opportunities to grow its businesses strategically while controlling costs. Healthy momentum across the automotive and aerospace markets, along with synergies from acquisitions, is expected to support its results moving ahead.

However, PPG Industries is exposed to currency headwinds. Some of the end-markets including commercial construction and heavy-duty equipment also remain somewhat sluggish.

Zacks Rank

PPG Industries currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the chemical space include Koppers Holdings Inc. KOP , Air Products & Chemicals Inc. APD and Arkema S.A. ARKAY . While Koppers and Arkema sport a Zacks Rank #1 (Strong Buy), Air Products carries a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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