PPG launches review of silica products business

Pittsburgh, Pennsylvania – PPG has launched a strategic review of its silica products business, which provides silica additives for performance enhancement in various applications, including tires.

“We are exploring strategic alternatives for our silica products business to maximise its value for our shareholders,” said Tim Knavish, CEO and chairman of the Pittsburgh-based group.

According to the PPG leader, the business has “a well-established position in a growing market” with “proven innovation and leading proprietary products”.

Operating within PPG’s speciality coatings and materials business, the silicas unit represented 1-2% of the group’s total sales in 2023, noted the US-based supplier 9 Jan.

However, said Knavish, given its distinct product portfolio and customer-base, the unit may be better suited to operate as “a core business within another company or as a standalone entity.”

PPG has engaged Morgan Stanley as financial advisor to assist the review, which is expected to be completed by mid-year.

The silica products business employs 350 people and manufactures products at facilities in Lake Charles, Louisiana and Delfzijl, The Netherlands.

In addition, there is small batch processing at a portion of a PPG facility in Barberton, Ohio.

Furthermore, part of a PPG facility in Monroeville, Pennsylvania includes a laboratory, pilot plant, and houses the leadership and administrative team offices for the business.

PPG silicas are used in tire, industrial and silicone rubber applications, as microporous fillers for battery separators and as additives for paints and coatings.