PPG Commodities, Georgia Gulf soon to be one - KPLC 7 News, Lake Charles, Louisiana

PPG Commodities, Georgia Gulf soon to be one

Posted: Updated:

Local PPG officials heard about a merge possibility on Friday, and now, less than a week later, it's a reality.

PPG will merge its commodities plants with the entire Georgia Gulf company, and southwest Louisiana is the only place you can currently find both plants.

"It's a unique and exciting opportunity for us to grow our business," said PPG Lake Charles plant manager Jon Manns.

Growth for both PPG and Georgia Gulf. The companies are taking their current operations and putting them together to become a more efficient fortune five hundred company in a $2.1 billion transaction.

"We're a commodity business, and a commodity business is most successful when it can run its maximum rates," said Manns. "What this arrangement does is provide us a lot more options to allow us to run at maximum rates."

The commodities portion of PPG currently produces caustic, chlorine and vinyl chloride. Georgia Gulf produces PVC from vinyl chloride, and building products from PVC. As of now, Georgia Gulf only produces about fifty percent of the chlorine and vinyl chloride they need to make their products. This merger will completely cut that expense out and give Georgia Gulf an extra product in caustic, and it gives PPG the opportunity to produce PVC and buildings products.

"What this new arrangement does is it provides us a much stronger configuration for the future of operating here," said Manns.

The impact in southwest Louisiana will be significant. And Georgia Gulf sites Lake Charles as a reason in the merger.

"One of the most compelling reasons for this merger is that fact that we are able to combine the strength and the assets that we have in Lake Charles," said Alan Chapple with Georgia Gulf.

Their current Lake Charles locations will make the economy here stronger.

"Having the ability to work together in Lake Charles now, really just gives us so much more strength and opportunities to grow and create more value for all of our stakeholders, for shareholders, for our employees, for the communities where we operate," said Chapple. "It really just is a great deal for everybody."

Since the merger is very new, a lot of details are still unknown, like whether or not there will be any employment changes at the current plants in southwest Louisiana or even what the company will be called.

Copyright 2012 KPLC. All rights reserved.

Powered by WorldNow