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PPG Increases Investment in Mexican Auto Glass Producer

1 February 1999

PPG Increases Investment in Mexican Auto Glass Producer

    PITTSBURGH, Feb. 1 -- PPG Industries increased
its investment from 25 to 50 percent in Cristal Laminado o Templado S.A. de
C.V. (CITSA), an automotive glass fabricator in Tepeji del Rio, Mexico, 30
miles north of Mexico City.
    The remaining 50 percent will continue to be owned by the Villasenor
family shareholders.
    Increased PPG ownership will accelerate CITSA's utilization of PPG's
various resources to pursue opportunities in the growing Mexican automotive
industry, according to Ernest Hahn, PPG vice president, automotive glass.
    "This partnership already has shown that as a team we can better supply
customers in Mexico with domestically produced parts," Hahn said.  "By
combining PPG's technical skills with CITSA's proximity to the marketplace, we
are better able to drive opportunities that capitalize on both of our
strengths."
    Isidro Villasenor Navarro, CITSA general manager, said he, too, has been
pleased with the partnership.
    "We share PPG's enthusiasm for growing this business," Villasenor said.
"Combining the competencies of both partners creates a synergy that affords
excellent opportunities for profitable future growth."
    PPG acquired its initial interest in CITSA in 1997.  The company has since
expanded capabilities to supply original-equipment automotive glass parts for
domestic and export markets, and introduced PPG's new laminated Safe and Sound
side windows that have enhanced penetration resistance.  Hahn said CITSA will
increase windshield production capacity this year.
    The facility received QS-9000 registration to meet automotive industry
quality requirements.  In 1998, CITSA achieved a quality level of zero defects
measured in parts per million (ppm) in supplying glass to General Motors and
Chrysler de Mexico.
    The seven-year-old plant employs about 300 persons.
    In Mexico, PPG also produces automotive and industrial coatings and
related products in San Juan del Rio, and has an amorphous silicas plant at
Altamira.
    North America's largest producer of flat glass and flat glass products,
PPG also has interest in an auto glass operation in Venezuela.  The
Pittsburgh-based company is a global maker of fiber glass, coatings and
chemicals.
    Internet: http://www.ppg.com