PPG Industries is moving forward with its plans to sell the assets of its Mt. Zion, Illinois glass manufacturing facility to its partner of 13 years, glass manufacturer Fuyao Glass America Inc.
In Fuayo's hands, the facility (which currently manufactures glass for residential and commercial projects) will be retrofitted to produce automotive glass.
The change won't come without a transition period, however. PPG is planning to operate the plant for up to one year, during which it will produce SUNGATE coated glass and clear glass. Eventually, it'll shift production for those products to its other North American glass manufacturing sites.
“Glass coatings technology remains the engine of our growth and we plan to make incremental technology investments in our facilities to improve our current capacity for better-performing, low-e glass and to expand our overall technical capabilities for newer, more advanced products,” said Richard Beuke, VP flat glass.
The transaction is expected to be completed in the third quarter of this year, subject to customary closing conditions. The specific financial terms of the deal were not disclosed.