US PPG Industries to restructure in Europe; 2,000 workers affected

05 April 2012 15:38  [Source: ICIS news]

PPG headquartersHOUSTON (ICIS)--PPG Industries plans to restructure some of its businesses, mostly in Europe, affecting about 2,000 employees, the US-based paints, coatings and chemicals firm said on Thursday.

CEO Charles Bunch said the restructuring would take place in PPG’s global architectural coatings businesses, and in other PPG businesses and administrative functions in Europe.

“These cost-reduction actions, while always difficult decisions, are needed to ensure that our cost structure is appropriate for business conditions and that all of our operations remain competitive globally,” Bunch said.

The company expects to save $140m/year (€106m/year) by restructuring.

PPG will report an after-tax charge of about $164m, or $1.06 per diluted share, related to the restructuring, in the first quarter, it said.

PPG did not say whether it would close down plants. It also remained unclear whether all the affected employees will end up losing their jobs.

A PPG media official at the company’s headquarters in Pittsburgh, Pennsylvania, was not immediately available for additional comment.

Earlier this week, Dow Chemical said it planned to close four of its plants, mainly because of continued weakness in the European market.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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