Pittsburgh-based PPG Industries and Japan’s Kansai Paint have announced the successful conclusion of negotiations to launch an alliance for the sale of automotive coatings to global original equipment manufacturers (OEMs).
According to a statement, the joint venture – to be known as PPG Kansai Automotive Finishes (PKAF) – has established legal entities in the United States and the United Kingdom. Registration certification has been initiated in Canada, Mexico, France and Japan and should be finalised shortly.
Officials from both companies said the objective of the alliance would be to respond quickly and effectively to the demands and requirements of the global automotive OEM industry.
The initial focus of the alliance will be Japanese-based OEMs in North America and Europe. Later, PPG and Kansai will establish marketing and sales operations in Shanghai, China, and in other Asian countries to serve all automotive OEM customers in that region. In addition, PPG and Kansai will jointly develop coatings technologies.
North American and European joint ventures will be 60 percent owned by PPG and 40 percent owned by Kansai. Troy, Michigan, will be the head office in North America and Birmingham, England, will serve as the European head office. The joint venture in Japan will be 50 percent owned by PPG and 50 percent owned by Kansai and it will be located in Aichi Prefecture.