PPG launches strategic review of silicas business

PITTSBURGH—PPG's silica products business may be better suited as a standalone entity, according to the special materials company.

The Pittsburgh-based company, last month, launched a strategic review of its silica products business, which provides silica additives for performance enhancement in various applications, including tires. The company has engaged Morgan Stanley & Co. L.L.C. as financial advisor to assist the review, which is expected to be completed by mid-2024.

"We are exploring strategic alternatives for our silica products business to maximize its value for our shareholders and to ensure its continued success," PPG Chairman and CEO Tim Knavish said in a Jan. 9 statement.

"The business has a well-established position in growing market, proven innovation, leading proprietary products, and dedicated and talented employees," he added. "However, given the (business') distinct product portfolio, customer base and operating characteristics, we believe that it may be better suited to operate as a core business within another company or as a standalone entity."

The company noted there is "no assurance" that the review will result in any transaction, and it does not intend to provide progress or status updates for the review "unless and until it deems further disclosure is appropriate or required."

Operating within PPG's specialty coatings and materials business, the silicas unit represented 1-2 percent of the group's total sales in 2023.

The unit employs 350 people and manufactures products at facilities in Lake Charles, La., and Delfzijl, the Netherlands. It also operates small batch processing at a portion of a PPG facility in Barberton, Ohio., and part of PPG's facility in Monroeville, Pa.

Knavish said the company will continue to fully support the silicas business and remains committed to its customers.

PPG silicas are used in tire, industrial and silicone rubber applications; microporous fillers for battery separators; free-flow and carrier agents for food, animal feed, and agricultural and industrial chemicals; and flatting, thickening and anti-corrosion additives for paints and coatings.

European Rubber Journal contributed to this report.