PPG Industries, AECI Ltd. Set South African Coatings Venture
20 December 1999
PPG Industries, AECI Ltd. Set South African Coatings VenturePITTSBURGH, Dec. 20 -- Pittsburgh's PPG Industries and AECI Ltd. of Johannesburg, South Africa, have agreed to join forces in an automotive refinish, auto original equipment and industrial coatings venture based on AECI's technical coatings division at Port Elizabeth. Completion of the transaction is subject to regulatory approvals. Terms were not disclosed. Douglas C. Hepper, PPG refinish coatings vice president, said PPG will have an equity interest in a new entity, AECI Coatings (Proprietary) Ltd., that will be created in January from AECI's present Dulux technical coatings unit. A long-time, strong strategic alliance between Dulux and PPG in South Africa will be consolidated through the new venture, he said. "AECI Coatings customers in the automotive and technical sectors throughout southern Africa will have access to the PPG latest products and process technology," he said. The new unit will also have access to additional PPG technologies, including industrial coatings, adhesives, sealants and metal pretreatments. Paolo Candotti, managing director of Dulux (Pty) Ltd., will become managing director of AECI Coatings. PPG is the world's leading producer of transportation coatings and a leading supplier of industrial and packaging coatings, flat and fabricated glass, and chemicals. With about 120 production facilities in 22 countries, its 1998 sales exceeded US$7.5 billion.