Glass and paint giant PPG Industries is considering widespread plant and job consolidations this year as it looks to offset falling demand for automotive original finish paints.
The company, which has 120 plants worldwide, intends to "reduce costs, increase efficiencies and accelerate performance improvement" at a cost of up to £70m, according to Raymond LeBoeuf, PPG board chairman and chief executive. "Our ultimate actions will involve facility and job consolidations, primarily in the coatings segment," he said.
Despite falling demand from carmakers for glass and paint products, the company's aftermarket products, including the ICI Autocolor subsidiary, were enjoying "volume growth", supplemented by higher prices. "More price increases are coming," said Mr LeBeouf.
A spokeswoman for the UK division of PPG, based in Birmingham, "could not say" what the likely implications would be for the UK.