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PPG Plans Sale of European Glass Business

26 March 1998

PPG Plans Sale of European Glass Business

    PITTSBURGH, March 26 -- Pittsburgh-based PPG Industries'
European employee works council representatives today were
informed that discussions are under way to sell PPG's European flat and
automotive glass business, Raymond W. LeBoeuf, board chairman and chief
executive officer, said.  He did not identify prospective acquirers.
    PPG Industries Glass in France makes automotive windshields at Aniche,
flat glass and tempered auto glass at Boussois, and tempered auto glass at
Donchery.  In Italy, glass operations of PPG Industries Italia make flat
glass, mirrors and auto windshields at Cuneo, auto windshields and tempered
glass at Roccasecca and flat glass at Salerno.
    These units of PPG, a glass producer in Europe since 1902, have about
2,750 employees -- roughly two-thirds in France and one-third in Italy -- and
annual sales of about US $450 million.  PPG's global glass sales were
US $2.1 billion last year.
    PPG's Italian subsidiary Ampaspace, a producer of aircraft transparencies,
will not be divested.
    "Our glass business in Europe is profitable and has accomplished strong
cost and efficiency gains," LeBoeuf said.  "However, because it is not a major
force in the region's highly competitive glass industry and long-term
performance has been inconsistent, we had to conclude it does not meet our
current strategic requirements for scale, growth and performance.
    "On the other hand, our divestment decision presents an opportunity for a
company with a more vigorous European glass industry presence to benefit from
PPG's excellent assets and people," he added.
    He said there would be no disruption of customer service while a sale is
negotiated, and he expects PPG "to continue to participate in profitable
product segments where our leadership technology provides European customers
with added value, such as Sungate solar energy-control windshields and the
Intercept glass technology licensed to insulating glass fabricators
worldwide."
    As announced in January, PPG also this year will close a small,
unprofitable flat glass plant at Perry, Ga., and exit equity interests in two
flat glass plants in China, where significant industrywide excess capacity is
expected to sustain a poor competitive environment for the foreseeable future.
    "These actions will allow us to more profitably focus resources on the
strong portfolio of businesses that will accelerate consistent growth and
shareholder value into the next century," LeBoeuf said, adding that "the much
more significant balance of our glass business, concentrated largely in North
America where PPG is the industry leader, is not only healthy but expanding."
    PPG is also a major global producer of automotive and industrial coatings,
continuous-strand fiber glass and chemicals.  In recent months the company has
completed several expansions in coatings and chemicals, including four
European acquisitions.  PPG's 1997 global sales totaled US $7.4 billion.

SOURCE  PPG Industries