PPG Industries' Central Europe Center Receives Airbus Nod

PPG IndustriesPPG declared that it has received Airbus' approval for its Central Europe application support center (ASC) in Germany for repackaging aerospace sealants from bulk containers into customer-friendly point-of-use packages.

The company will repackage three grades of PR 1782 low density fuel tanks and fuselage sealants from bulk containers into customer-friendly Semkit packages. The repackaging will be done for Airbus and its subcontractors as well as for Airbus aircraft operators and maintenance and repair operations for 22 European countries.

Semkit packages are well known for pre-proportioned, two-part aerospace sealants that provide time-saving, efficiency and quality benefits. The package comes in the form of a ready-to-use cartridge based system. It is used for storing, mixing and applying multiple component sealants and other materials. These packages offer accurate proportioning of materials as the premeasured components are stored in different components within the cartridge.

PR 1782 low density fuel tank and fuselage sealant provides affordable aircraft fuel economy as it offers as much as 30% weight savings by volumes compared with other traditional sealants. The sealant has been qualified by Airbus for all aircraft manufacturer's airframes.

PPG Industries, which is among the prominent chemical companies along with Dow Chemical DOW , Eastman Chemical EMN and Air Products APD , has a diversified business, both in terms of products offered and geographical presence. The company's strong presence in emerging regions has enabled it to deliver growth to shareholders by tapping opportunities there. PPG Industries is also taking initiatives to expand its business through acquisitions.

PPG Industries is also executing an aggressive cost cutting and restructuring strategy. The company has announced certain restructuring measures to lower its cost structure globally. Special emphasis will be put on regions and end-use markets with the weakest business. The restructuring actions are expected to deliver $120-$130 million in annual savings, with $40-$50 million of savings expected to be realized in 2017.

PPG Industries is, however, exposed to currency headwind, macroeconomic challenges and volatility in raw materials and energy costs. Some of its end-markets including marine still remain sluggish.

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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.

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