PPG to Sell Silicas Products Business to Qemetica
US paints and coatingsmaker PPG has agreed to sell its silicas products business for abou $310 million to Warsaw, Poland-based Qemetica, a manufacturer of soda ash, silicates and other specialty chemicals. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
The deal is the result of PPG’s evaluation of strategic alternatives for the business, which was first announced in January 2024.
PPG’s silicas products business, which has about 400 employees, manufactures precipitated silica products as performance-enhancing additives. In 2023, the silica products business represented between 1-2% of PPG’s total net sales, the company said. The transaction includes PPG’s precipitated silicas manufacturing facilities in Lake Charles, Louisiana, US and Delfzijl, The Netherlands. In addition, Qemetica will lease silicas manufacturing and research and development operations at PPG’s US sites in Barberton, Ohio, and Monroeville, Pennsylvania, respectively.
PPG’s CEO, Tim Knavish, said: “This transaction will allow us to further focus our resources on our technology-differentiated coatings and specialty products businesses to accelerate our organic growth and drive increased shareholder value creation.”
Qemetica, which emerged from the Ciech Group following a rebranding in June of this year, ranks as a leading chemical manufacturer in Central Europe with top-tier European production capacity in soda ash, vacuum salt, and silicates. The company's growth strategy focuses on building a global presence through strategic acquisitions and expansion of operations beyond Europe, aiming to diversify its portfolio and tap into new markets.
