Back to top

Image: Bigstock

PPG Boosts Capacity at Industrial Coatings Plant in Vietnam

Read MoreHide Full Article

PPG Industries Inc. (PPG - Free Report) has completed upgrades to boost the capacity of its Yen Phong industrial coatings factory in Bac Ninh province, Vietnam. The improvements include a new production line devoted to PPG AQUACRON waterborne decorative and functional coatings for consumer electronics, as well as cutting-edge testing equipment and automated spray booths.

The expanded plant, which now has six manufacturing lines, seeks to minimize turnaround times, speed up coatings development and provide greater access to PPG's technical and customer support. This investment demonstrates PPG's commitment to the region and its support for the growing demand for more sustainable products from Southeast Asia's major consumer electronics brands.

PPG, a trusted supplier to leading global consumer electronics OEMs, provides next-generation solutions that not only improve the durability, design and functionality of their products but also help these industry partners reduce their carbon footprint by using coatings with little to no solvents. In addition to PPG Aquacron coatings, the plant manufactures PPG SPECTRACRON liquid coatings for transportation applications, PPG DURANAR coil and extrusion coatings for architectural and building items and RAYCRON UV-curable coatings for electronics. This latest expansion is another significant step forward in PPG's commitment to creating innovative, sustainable products that protect and enhance its communities across the world.

Customers in the region can also take advantage of the PPG SECURE LAUNCH EXCELLENCE program, which is designed to integrate new coating technologies and colors into their production lines. The approach ensures that new solutions will operate on the first application and match the exact customer requirements. PPG's commitment to sustainable products is reflected in its expanding line of waterborne, powder and energy-curable coatings. By 2030, the company aims to have 50% of its sales generated by sustainably advantaged products.

Shares of PPG have lost 8.9% over the past year compared with a 9.6% decline of its industry.

Zacks Investment Research
Image Source: Zacks Investment Research

The company's projected adjusted EPS for the third quarter is in the range of $2.10-$2.20. For the full year, it expects adjusted EPS in the band of $8.15-$8.30. These projections consider various factors such as current global economic activity, uneven global industrial production, reduced global automotive production, stabilizing demand in Europe, sustained growth in Mexico and India and low single-digit growth in China.

Zacks Rank & Key Picks

PPG currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 141.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.32 per share, indicating a year-over-year rise of 131.6%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 92.6% in the past year.

Agnico Eagle Mines currently carries a Zacks Rank #2 (Buy). AEM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 71.1% in the past year.

Published in