PPG's Industrial Coatings Business Announces North American Price Increases

PITTSBURGH--Sept. 24, 2004--The industrial coatings business of PPG Industries has announced price increases for all liquid and powder products in North America.

The increases take effect Oct. 1, 2004, as contracts permit. The increases will range from 10 to 12 percent for powder products and approximately 7 percent for general industrial liquid and adhesive products. Prices for PPG's coil and extrusion products were increased 5 percent in July.

"Our industrial coatings business faces an extraordinary challenge as costs rise dramatically," said J. Rich Alexander, PPG's vice president of industrial coatings. "We continue to take aggressive steps to control such costs, including improved process efficiencies, disciplined negotiation of supplier contracts, and optimized distribution processes to address the continued rise in transportation expenses. We are committed to cost control as a mechanism to limit the need for price increases.

"Despite these efforts, however, our costs for raw materials, including solvents, resins, pigments and containers, have risen dramatically. In addition, increases in energy and transportation costs have continued to adversely affect PPG's business, the latter primarily because of the lack of freight availability. Unfortunately, we are now facing a situation that forces us to pass on a portion of these increases. "

Pittsburgh-based PPG is global supplier of coatings, glass, fiber glass and chemicals, with more than 100 manufacturing facilities and equity affiliates in 23 countries. Sales in 2003 were $8.8 billion.