PPG Industries (PPG) to Enhance Coatings Capacity in Europe
PPG Industries, Inc. PPG announced plans to expand coatings manufacturing capacity in Europe for packaging applications. The company will invest at the sites in Netherlands and Poland.
It will support the growing demand for the latest generation of coatings for aluminum and steel cans in the region, used in packaging of beverage, food and personal care items. The financial terms and conditions of the plan have not yet been disclosed.
The projects include further expansion of the company’s facilities in Tiel, Netherlands, which is expected to increase the production capacity for PPG Innovel non-BPA internal coatings for beverage cans by 30%. This is anticipated to be completed in the first quarter of 2022.
The Tiel plant will also double its production capacity for PPG iSense external coatings, used for the exterior of metal cans for beverage and personal care packaging. The completion of that project is expected by 2021-end.
PPG Innovel is a very popular, non-BPA internal beverage can spray technology in the world that is suitable for a broad range of filling products. PPG iSense specialty coatings offer distinctive sensory surface effects for can exteriors that help brands to be markedly noticeable on increasingly crowded store shelves.
Moreover, PPG Industries is set to double capacity at the Cieszyn, Poland, plant to bolster growth of the PPG Nutrishield line of non-BPA, internal, food can coatings. This is expected to be completed by the end of third-quarter 2021.
These latest investments — which follow a project completed last year — are intended to expand packaging coating capacity at the company’s Bodelshausen, Germany site. It has doubled the project capacity and the research and development facility has now become the company’s European R&D packaging center of excellence.
PPG Industries noted that the spree of investments demonstrate its commitment toward supporting customers in the packaging sector across Europe and beyond. It believes that the offering of novel and path-breaking technologies along with high-performance products will enable it to enhance value creation for brand owners as well as manufacturers.
Shares of PPG Industries have surged 63.9% over a year, outperforming the industry’s 51.8% rally. Its earnings growth rate for the current year is pegged at 41.7%.
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The company, in its last quarter earnings call, stated that it expects sales and earnings growth on the back of economic revival and recent acquisitions. The company also sees structural cost savings from its restructuring actions. It expects overall global demand to continue to be broad based in many of its end-use markets. Higher domestic flight activities in various parts of the world are also expected to support the gradual recovery in aftermarket aerospace coatings demand in second-half 2021.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Zacks Rank & Other Stocks to Consider
Currently, PPG Industries carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Orion Engineered Carbons S.A OEC, Tronox Holdings PLC TROX and Univar Solutions Inc. UNVR, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Orion has a projected earnings growth rate of 61.5% for the current year. The company’s shares have increased 76.5% over a year.
Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have surged 204.1% over a year.
Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have jumped 50.9% over a year.
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