PPG Industries has reached a definitive agreement to sell the assets of its Mt. Zion, Illinois, glass manufacturing facility to automotive glass manufacturer Fuyao Glass America.
The sale is expected to close in the third quarter 2014, subject to customary closing conditions. Financial terms were not disclosed.
The Mt. Zion facility currently manufactures glass for use in residential and commercial construction markets. Fuyao plans to rebuild and retrofit the facility’s two production lines to manufacture automotive glass.
PPG will continue to operate the plant for up to one year, producing Sungate coated glass and clear glass.
The production for these products will eventually be shifted to PPG’s other North American float glass manufacturing sites.
The sale of the Mt. Zion facility is consistent with the strategic initiative by PPG’s flat glass business to focus on its higher-technology, coated glass capabilities for residential and commercial construction application.
In regard to the Mt. Zion facility, Richard Beuke, PPG vice president of flat glass, noted: “Fuyao has been PPG’s business partner for 13 years and is a well-respected glass manufacturer and fabricator.
“The Mt. Zion facility is ideally suited for their automotive glass mission, given its geographic proximity to major automotive manufacturers and history in automotive glass production.”
The Mt. Zion facility was built in 1959 and converted for float glass production in 1978.
Source: PPG Industries/glass-international.com