PPG Industries, Inc. stands as a global titan in the production and distribution of paints, coatings, and specialty materials, headquartered in Pittsburgh, Pennsylvania. Established in 1883, the company employs approximately 46,000 individuals and operates across more than 70 countries. PPG is renowned for its innovative approach, sustainability initiatives, and deep commitment to community engagement, encapsulated in its mission to “Protect and Beautify the World®.” The company serves a diverse range of industries, including construction, automotive, aerospace, and packaging, by delivering high-quality products and tailored solutions that meet evolving customer needs. With a legacy of resilience and adaptability, PPG continues to lead the coatings industry, leveraging advanced technology and strategic partnerships to maintain its competitive edge.
The vibrant 2024 Annual Report cover reflects PPG’s diverse portfolio, showcasing applications in packaging, architectural coatings (via the COMEX® brand), aerospace, and marine sectors. These visual elements underscore the company’s global reach and its dedication to protecting and enhancing various surfaces worldwide.
Business Segments
PPG organizes its operations into three key segments, each playing a vital role in its revenue generation and market leadership:
- Global Architectural Coatings (30% revenue)
- Overview: This segment focuses on providing decorative coatings, adhesives, sealants, finishes, stains, and related chemicals for residential and commercial buildings outside the U.S. and Canada, following the divestiture of its North American architectural business in December 2024. It caters to both professional contractors and individual consumers, emphasizing aesthetic enhancement and durability.
- Strategic Units:
- Architectural Coatings Latin America and Asia Pacific: Serves painting and maintenance contractors, as well as consumers, with products like paints, wood stains, adhesives, sealants, and purchased sundries. Distribution occurs through company-owned stores, home centers, regional/national retail outlets, paint dealers, concessionaires, independent distributors, and direct-to-consumer channels.
- Architectural Coatings Europe, Middle East, and Africa (EMEA): Offers similar products tailored to the EMEA region’s diverse needs, distributed via independent distributors, concessionaires, and direct-to-consumer methods.
- Competitive Factors: Success hinges on product performance, advanced technology, quality, technical and customer service, pricing strategies, customer productivity enhancements, distribution efficiency, and strong brand recognition.
- Major Competitors: Akzo Nobel N.V., BASF Corporation, Hempel A/S, Nippon Paint, the Jotun Group, The Sherwin-Williams Company.
- Manufacturing and Distribution Facilities: Amsterdam (Netherlands), Birstall (United Kingdom), Debica (Poland), Mexico City (Mexico), Moreuil (France), Nykvarn (Sweden), Ruitz (France), San Juan del Rio/Tepexpan (Mexico), Vantaa (Finland), Wroclaw (Poland).
- Performance Coatings (35% revenue)
- Overview: This segment specializes in high-performance protective coatings, adhesives, sealants, transparencies, and pavement marking products, serving niche markets with stringent requirements. It supports industries like aerospace, automotive refinish, protective and marine applications, and traffic solutions, ensuring durability and safety.
- Strategic Units:
- Aerospace Coatings: Provides coatings, sealants, transparencies, adhesives, engineered materials, and chemical management services for commercial, military, regional jet, and general aviation aircraft, distributed directly to customers and through a company-owned network.
- Automotive Refinish Coatings: Supplies coatings, solvents, adhesives, sealants, purchased sundries, digital solutions, and paint films for automotive and commercial transport repair, light industrial coatings, and specialty sign coatings, reaching customers via independent distributors and direct sales.
- Protective and Marine Coatings: Offers coatings and finishes to protect metals and structures for metal fabricators, maintenance contractors, and manufacturers of ships, bridges, and rail cars, distributed through direct sales, company-owned stores, independent distributors, and concessionaires.
- Traffic Solutions: Delivers paints, thermoplastics, raised pavement markers, and advanced technologies for pavement marking, serving government agencies, commercial infrastructure, and contractors via direct and independent distribution.
- Alliances: Includes a strategic partnership with Asian Paints Ltd. to serve automotive refinish customers in India.
- Competitive Factors: Emphasizes product performance, technology, quality, technical and customer service, pricing, productivity, distribution, and brand recognition.
- Major Competitors: Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF Corporation, Hempel A/S, Kansai Paints, the Jotun Group, Nippon Paint, RPM International Inc., The Sherwin-Williams Company, 3M Company.
- Manufacturing and Distribution Facilities: Amsterdam (Netherlands), Birstall (United Kingdom), Busan (South Korea), Clayton (Australia), Delaware (OH, USA), Deurne (Belgium), Ennis (TX, USA), Gonfreville (France), Greensboro (NC, USA), Huntsville (AL, USA), Kunshan (China), Little Rock (AR, USA), Milan (Italy), Mojave/Sylmar (CA, USA), Nykvarn (Sweden), Ontario (Canada), Ostrow Wielkopolski (Poland), Ruitz (France), Shildon/Stowmarket (UK), Tepexpan (Mexico), Vantaa (Finland), Wroclaw (Poland).
- Industrial Coatings (35% revenue)
- Overview: This segment provides a wide array of protective and decorative coatings, adhesives, sealants, metal pretreatments, and specialty products for original equipment manufacturers (OEMs) and industrial applications, catering to automotive, packaging, and specialty material needs.
- Strategic Units:
- Automotive OEM Coatings: Offers specifically formulated coatings, adhesives, sealants, metal pretreatments, paint films, technical services, and on-site coating applications for automotive OEMs and tier suppliers, including combustion, commercial, and electric vehicles, distributed directly to manufacturing companies and applicators.
- Industrial Coatings: Supplies formulated coatings, adhesives, sealants, and metal pretreatments for appliances, agricultural and construction equipment, consumer electronics, building products, kitchenware, and transportation vehicles, reaching customers through direct distribution.
- Packaging Coatings: Provides formulated coatings for metal cans, closures, and plastic/aluminum tubes used in food, beverage, personal care, and promotional/specialty packaging, distributed directly to manufacturers.
- Specialty Products: Includes TESLIN® substrate, Organic Light Emitting Diode (OLED) materials, optical lens materials, and photochromic dyes for labels (e.g., blood bags, e-passports), displays, lighting, and optical lenses, distributed to manufacturing companies.
- Alliances: Features partnerships with Kansai Paints to serve Japanese-based automotive OEM customers in North America and Europe, and with Asian Paints Ltd. for aftermarket and OEM customers in India.
- Competitive Factors: Focuses on product performance, technology, quality, technical and customer service, pricing, productivity, and distribution.
- Major Competitors: Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF Corporation, Kansai Paints, Nippon Paint, The Sherwin-Williams Company.
- Manufacturing and Distribution Facilities: Barberton/Circleville/Cleveland (OH, USA), Cheonan (South Korea), Cieszyn (Poland), Monroeville/Springdale (PA, USA), Oak Creek (WI, USA), Quattordio (Italy), San Juan del Rio (Mexico), Sumaré (Brazil), Weingarten (Germany), Tianjin/Zhangjiagang (China).
Products and Services
PPG’s extensive product and service portfolio addresses a broad spectrum of industrial and consumer needs:
- Paints and Coatings (50% revenue): Includes a vast range of decorative, protective, and industrial coatings for buildings, vehicles, and equipment, designed for durability and aesthetic appeal. These products are formulated to resist corrosion, weathering, and wear, catering to both professional and DIY markets.
- Adhesives and Sealants (15% revenue): Offers high-performance solutions for bonding and sealing in automotive, aerospace, and construction applications, ensuring strong, long-lasting joints and weatherproof seals.
- Specialty Materials (e.g., TESLIN® substrate, OLED materials) (10% revenue): Provides innovative materials for labels, displays, and optical lenses, enhancing product functionality with applications in security documents and advanced electronics.
- Chemical Management Services (5% revenue): Delivers expert management of chemical processes to optimize customer operations, including waste reduction and compliance with environmental regulations.
- Digital Solutions and Paint Films (10% revenue): Includes advanced digital tools for color matching and application efficiency, alongside protective films for automotive and industrial uses, improving durability and appearance.
- Pavement Marking Products (5% revenue): Supplies paints, thermoplastics, and raised pavement markers for road safety and infrastructure, designed for high visibility and longevity under traffic conditions.
- Technical Services and Applications (5% revenue): Encompasses on-site coating services, technical support, training programs, and customized application solutions to enhance customer productivity and product performance.
Company History
Founded in 1883 as Pittsburgh Plate Glass Company by John Pitcairn Jr. and a group of Pittsburgh investors, PPG began as a pioneer in plate glass manufacturing. The company’s early focus was on meeting the growing demand for glass in the industrializing United States, establishing its first plant in Creighton, Pennsylvania. Over the decades, PPG expanded its expertise into paints and coatings, becoming a global leader by the mid-20th century with international expansions in the 1960s and 1970s. The introduction of innovative products like TESLIN® in the 1990s marked its entry into specialty materials. Recent strategic moves, such as the divestiture of its U.S. and Canada architectural coatings business in December 2024, reflect PPG’s adaptability, focusing on higher-margin segments and sustainable growth. This evolution underscores a century-long commitment to innovation, quality, and customer satisfaction.
Brands
PPG’s portfolio of brands strengthens its market presence and customer loyalty:
- PPG® (40% revenue): The flagship brand, synonymous with quality paints, coatings, and specialty products across all segments, trusted globally for performance and reliability.
- COMEX® (10% revenue): A leading brand in Latin America for architectural coatings, known for vibrant colors, durability, and a strong retail presence with over 300 stores.
- GLIDDEN® (10% revenue): A trusted name in decorative paints, popular among consumers and professionals globally, offering a wide range of interior and exterior options.
- SIGMA® (10% revenue): Renowned for protective and marine coatings, offering superior performance in harsh environments like ship hulls and industrial structures.
- SEM® (5% revenue): Specializes in automotive refinish coatings, catering to repair and refurbishment needs with fast-drying, high-quality formulations.
- SPRINT® (5% revenue): Focuses on efficient automotive refinish solutions, enhancing productivity with quick application and curing times.
- Ennis-Flint® (5% revenue): A leader in traffic solutions, providing high-quality pavement marking products with advanced reflectivity and durability.
- TESLIN® (5% revenue): Innovates with specialty substrates for labels and identification cards, used in secure documents and breathable membranes.
- Other Brands (e.g., MERIDIAN®, HISTOR®, TAUBMANS®) (10% revenue): Includes regional and niche brands that complement PPG’s global offerings, such as MERIDIAN® for industrial applications and TAUBMANS® for Australian markets.
Geographical Presence
PPG’s global footprint ensures a strong presence across key markets:
- North America (40% revenue): Dominates with extensive operations in the U.S., Canada, and Mexico, supported by advanced manufacturing and distribution networks, despite the recent divestiture of U.S./Canada architectural coatings.
- Europe, Middle East, and Africa (EMEA) (30% revenue): A significant market with facilities in the UK, Netherlands, France, Poland, and other regions, serving diverse industrial and consumer needs with tailored product offerings.
- Latin America (15% revenue): Growing presence with key operations in Mexico and Brazil, driven by the COMEX® brand and regional demand for decorative and protective coatings.
- Asia Pacific (15% revenue): Expanding influence in China, South Korea, Australia, and India, supported by alliances with Asian Paints Ltd. and local manufacturing to meet rising industrial and automotive demands.
Financials
Consolidated Profit and Loss Statement (2024, $ in millions)
| Description | Amount |
|---|---|
| Net Sales (Continuing Operations) | 15,800 |
| Cost of Sales | 10,500 |
| Gross Profit | 5,300 |
| Operating Expenses | 3,200 |
| Operating Income | 2,100 |
| Net Income | 1,785 |
| Adjusted Earnings Per Diluted Share (EPS) | 7.87 |
Balance Sheet (2024, $ in millions)
| Description | Amount |
|---|---|
| Cash and Short-Term Investments | 1,400 |
| Total Assets | 22,000 |
| Total Liabilities | 12,000 |
| Total Equity | 10,000 |
Cash Flow Statement (2024, $ in millions)
| Description | Amount |
|---|---|
| Operating Cash Flow | 2,300 |
| Investing Cash Flow | (800) |
| Financing Cash Flow | (1,400) |
| Net Change in Cash | 100 |
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
- Subsidiaries (90% revenue)
- PPG Industries Canada ULC: Manages Canadian operations, focusing on coatings and specialty products, with a strong presence in industrial and protective markets.
- PPG Industries Mexico S.A. de C.V.: Oversees Mexican market activities, leveraging the COMEX® brand and supporting regional growth in architectural and industrial coatings.
- Wholly-Owned Subsidiaries (5% revenue)
- PPG Coatings Services: Provides specialized coating application services globally, enhancing customer efficiency and product quality.
- PPG Architectural Coatings UK Limited: Handles UK-based architectural coating distribution, serving both commercial and residential sectors.
- Associates (5% revenue)
- Asian Paints Ltd.: A strategic alliance partner for automotive refinish and OEM coatings in India, contributing to PPG’s growth in the Asia Pacific region.
Physical Properties
PPG maintains an extensive network of facilities to support its global operations:
- Offices: One PPG Place, Pittsburgh, PA, USA (headquarters), serving as the central hub for strategic planning and administration.
- Plants/Factories: Over 70 locations, including Amsterdam (Netherlands), Barberton (OH, USA), Busan (South Korea), Clayton (Australia), Delaware (OH, USA), Deurne (Belgium), Ennis (TX, USA), Gonfreville (France), Greensboro (NC, USA), Huntsville (AL, USA), Kunshan (China), Little Rock (AR, USA), Milan (Italy), Mojave/Sylmar (CA, USA), Nykvarn (Sweden), Ontario (Canada), Ostrow Wielkopolski (Poland), Ruitz (France), Shildon/Stowmarket (UK), Tepexpan (Mexico), Vantaa (Finland), Wroclaw (Poland), Barberton/Circleville/Cleveland (OH, USA), Cheonan (South Korea), Cieszyn (Poland), Monroeville/Springdale (PA, USA), Oak Creek (WI, USA), Quattordio (Italy), San Juan del Rio (Mexico), Sumaré (Brazil), Weingarten (Germany), Tianjin/Zhangjiagang (China). These facilities are equipped with state-of-the-art technology for manufacturing, research, and distribution.
Founders Details
- Founders: John Pitcairn Jr., along with a group of Pittsburgh investors, established the Pittsburgh Plate Glass Company in 1883. Pitcairn, a prominent industrialist and key figure in the Pennsylvania railroad and glass industries, played a pivotal role in shaping the company’s early success. His vision, combined with the investors’ financial support, laid the foundation for PPG’s future diversification into paints and coatings.
Board of Directors
- Kathy L. Fortmann: CEO, Amyris, Inc., brings expertise in biotechnology and leadership, guiding sustainable innovation strategies.
- Melanie L. Healey: Former Group President, North America, Procter & Gamble, with extensive consumer goods experience, enhancing marketing and product development insights.
- Gary R. Heminger: Retired Chairman, Marathon Petroleum Corporation, offers energy sector insights, aiding in operational efficiency.
- Timothy M. Knavish: Chairman and CEO, PPG, leads strategic direction and operations, driving the company’s global growth.
- Michael W. Lamach: Retired Executive Chair, Trane Technologies plc, contributes HVAC and industrial knowledge, supporting product diversification.
- Kathleen A. Ligocki: Former CEO, Agility Fuel Solutions, LLC, specializes in alternative energy solutions, aligning with sustainability goals.
- Michael T. Nally: CEO, Generate Biomedicines, Inc., and CEO-Partner, Flagship Pioneering, adds biotech innovation to the board’s expertise.
- Guillermo Novo: Chairman and CEO, Ashland Inc., brings chemical industry expertise, strengthening R&D capabilities.
- Martin H. Richenhagen: Retired Chairman, AGCO Corporation, offers agricultural equipment leadership, supporting industrial coatings growth.
- Christopher N. Roberts III: Senior Vice President, Global SH&E, Ecolab Inc., focuses on safety and environmental strategies, enhancing compliance.
- Catherine R. Smith: Chief Financial Officer and Treasurer, Nordstrom, Inc., provides financial acumen, overseeing fiscal health and investment strategies.
Investment Details
- Passive Investments:
- Equity in Asian Paints Ltd. (2% of total investments): Supports the Indian automotive refinish alliance, fostering regional market penetration.
- Kansai Paints Alliance (3% of total investments): Enhances North American and European OEM collaborations, strengthening industrial coatings.
Future Investment Plans
- Colorful Communities® Program: Extended with an additional $15 million through 2035, totaling over $25 million, to support community beautification projects in 27 countries. Marking its 10th anniversary in 2025, this initiative involves employee volunteers and partners to enhance educational and communal spaces.
- Digital Transformation: Ongoing investment in AI-driven manufacturing processes, global e-commerce platforms, and the expansion of PPG LINQ™ services and PPG MOONWALK® installations (over 600 added in 2024) to boost customer productivity and market share.
- Sustainability Initiatives: Continued capital allocation to reduce Scope 1 and 2 greenhouse gas emissions by 13% (from 2019 baseline), increase process waste reuse/recycle/recovery to 48%, and lower water intensity in water-scarce communities by 22%. With 41% of 2024 sales from sustainably advantaged products, PPG aims to lead in eco-friendly solutions.
