24 January 2011 15:14 [Source: ICIS news]
LONDON (ICIS)--PPG Industries will expand its joint venture with Asian Paints Ltd, India’s largest coatings company, as part of its strategy to accelerate growth in coatings and emerging markets, the US-based chemicals, coatings, glass and specialty materials producer said on Monday.
As part of a new agreement, PPG Industries and Asian Paints Ltd would restructure their existing non-decorative coatings businesses to expand their current 50:50 joint venture, Asian PPG Industries, as well as create a second 50:50 joint venture.
The companies did not disclose financial terms of the agreement, which was expected to be completed during 2011, subject to regulatory approvals in India, PPG said.
The expanded relationship with Asian Paints “will enable PPG to take full advantage of the rapidly developing Indian economy”, said Viktor Sekmakas, senior vice president, industrial coatings, and president, PPG Asia-Pacific.
Mike Horton, vice president, coatings, PPG Asia-Pacific, said: “Through this new approach, we will leverage PPG’s global scale, technology and customer relationships with Asian Paints’ Indian customer base, manufacturing footprint, distribution channels and local relationships.”
The updated agreement means that Asian PPG Industries would now also focus on serving ?xml:namespace>
The new joint venture would serve the protective, industrial powder, industrial containers and light-industrial coatings markets, PPG said.
PPG and APL have agreed that PPG would lead Asian PPG Industries while Asian Paints would lead the new venture, “in order to best utilize the companies’ respective strengths to capture the growth in Indian markets,” PPG said.
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