Coatings specialist, PPG Industries declared that it has inked a deal to acquire certain assets of Equa-Chlor, a manufacturer of muriatic acid, caustic soda and chlorine, for an undisclosed amount.
Equa-Chlor is a privately owned firm based in Longview, Washington and runs one production facility. The acquisition is anticipated to be completed in the first half of 2011, subject to standard closing criteria.
As per the deal, PPG will purchase Equa-Chlor's production facility that manufactures about 220 tons of chlorine per day. Moreover, PPG will buy railcars from Equa-Chlor and integrate them in its current fleet to maximize its entire railcar utilization, which in turn will decrease future logistics expenditures and capital requirements.
Through this strategic acquisition, PPG anticipates to consolidate administrative operations and decrease entire US transportation expenditures considering the geographic footprint of Equa-Chlor.
The Senior Vice President of Commodity Chemicals at PPG, Michael H. McGarry, stated that the purchase would strengthen the market position of the company’s chlor-alkali and derivatives in the western United States as well as the supply of products to major clients across the country.
At present, PPG produces chlor-alkali and derivates at its facilities in Kaohsiung, Taiwan, Beauharnois, Quebec, Canada, Natrium, West Virginia, and Lake Charles, Louisiana.