PPG Industries has completed the first phase of an expansion project at its facility 20 miles (40km) northeast of Mexico City, Mexico, the US company said.
The expansion is the first half of PPG’s plan, which adds production and distribution capacity for its automotive adhesive and sealant products.
“Mexico is important strategically to PPG because its light-vehicle production rate is one of the fastest-growing among global automotive markets,” said Juanjo Ardid, global general manager for adhesives and sealants.
Miguel Martinez Leyton, PPG's director of automotive coatings in Mexico, said the investment to be able to manufacture locally would save on costs.
“Local content, cost and sustainability are all important to our automotive customers in Mexico,” he said.
According to PPG, the second phase will involve giving the plant the capability to manufacture PPG’s full line of mastics, sealants and Audioguard acoustic coatings.Audioguard products include waterborne, spray-applied coatings that provide vibration damping and interior vehicle noise reduction.
PPG said the second phase is underway.
The automotive industry is a major global consumer of petrochemicals which contributes more than a third of the raw material costs of an average vehicle. ICIS tracks the movement of petrochemical raw material costs in auto production both globally and regionally with the weighted ICIS Basket of Automotive Petrochemicals (IBAP).