PPG, Kansai Negotiate to Form Alliance

Pittsburgh's PPG Industries and Kansai Paint of Osaka, Japan, have announced that they have signed a non-binding memorandum of understanding and have entered into negotiations for the creation of an alliance between the two companies.

Officials from both companies said the objective of the alliance would be to respond effectively to the demands and requirements of the global automotive original equipment manufacturer (OEM) industry quickly and effectively, and this should assist PPG and Kansai in serving their traditional automotive OEM customers.

The alliance will also allow the companies to set up marketing and sales operations in North America and Europe for Japanese automotive OEMs as well as in Shanghai, China, and expanding into other Asian countries later, to serve all of the region's automotive OEM customers.