PPG Declares Force Majeure for Certain Commodity Chemicals
PITTSBURGH -- December 27, 2012
PPG Industries (NYSE:PPG) today announced that it has declared force majeure
for vinyl chloride monomer manufactured at the company’s Lake Charles, La.,
chemicals complex and for all grades of liquid caustic soda on a systemwide
basis. The company did not provide an end date for the force majeure.
This force majeure is a direct result of a Dec. 24 fire at the Lake Charles
chemicals complex. The fire affected the vinyl chloride monomer unit and did
not result in any off-site environmental impact. One employee was transferred
to the hospital and is currently being treated.
“The plant emergency response team did an excellent job extinguishing the fire
quickly, however we must declare force majeure as a result of the damage and
shutdown of the vinyl chloride monomer unit and reduced chlor-alkali operating
rates,” said Michael H. McGarry, PPG executive vice president. “We realize
this impacts our customers, and we are working to repair the unit as quickly
The company added that the expense stemming from the equipment damage and lost
sales volume will likely impact PPG’s Commodity Chemicals segment earnings by
$5 million to $8 million in the fourth quarter 2012, and an incremental $2
million to $5 million in 2013 based on current information.
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
PPG Industries' vision is to continue to be the world’s leading coatings and
specialty products company. Through leadership in innovation, sustainability
and color, PPG helps customers in industrial, transportation, consumer
products, and construction markets and aftermarkets to enhance more surfaces
in more ways than does any other company. Founded in 1883, PPG has global
headquarters in Pittsburgh and operates in more than 60 countries around the
world. Sales in 2011 were $14.9 billion. PPG shares are traded on the New York
Stock Exchange (symbol:PPG). For more information, visit www.ppg.com.
Statements in this news release relating to matters that are not historical
facts are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 reflecting the company’s current view
with respect to future events or objectives and financial or operational
performance or results. The forward-looking statements contained herein
include statements relating to the timing of the completion of repairs to the
vinyl chloride monomers unit, the length of the force majeure and the
financial impact of the damage and force majeure on PPG. Actual events may
differ materially from current expectations and are subject to a number of
risks and uncertainties, including the timing of the completion of repairs to
the vinyl chloride monomers unit, the length of the force majeure, the
financial impact of the damage and force majeure on PPG, and the other risks
and uncertainties discussed in PPG Industries’ periodic reports on Form 10-K
and Form 10-Q, and its current reports on Form 8-K filed with the Securities
and Exchange Commission. Forward-looking statements speak only as of the date
of their initial issuance, and PPG Industries does not undertake any
obligation to update or revise publicly any forward-looking statement, whether
as a result of new information, future events or otherwise.
Bringing innovation to the surface is a trademark of PPG Industries Ohio, Inc.
PPG Industries, Inc.
Jeremy Neuhart, PPG Corporate Communications, 412-434-3046
Vince Morales, PPG Investor Relations, 412-434-3740
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