US PPG acquires auto coatings assets in China

HOUSTON (ICIS)–PPG has acquired “certain assets” of Chinese automotive refinish coatings company Futian Xinshi (Futian) for an undisclosed sum, the US-based international coatings and specialty materials firm said in a statement on Friday.

Futian, based in Guangdong province, distributes its products in China through a network of more than 200 distributors. It had sales of about $15m last year.

PPG is acquiring Futian’s trademarks, product technology and customer list, it said.

“The acquisition of Futian will further enhance PPG’s position in the growing Chinese automotive refinish coatings market,” said John Outcalt, PPG vice president, global automotive refinish.

The automotive industry is a major global consumer of petrochemicals which contributes more than a third of the raw material costs of an average vehicle. ICIS tracks the movement of petrochemical raw material costs in auto production both globally and regionally with the weighted ICIS Basket of Automotive Petrochemicals (IBAP).

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