PPG has said it is evaluating the future of its underperforming glass business & is exploring options, including selling the glass business, restructuring, forming a strategic alliance with another company, or even acquiring other companies. The move has caused concern at PPG plants such as the Meadville site, PA, with 275 workers."We are looking at the whole range of options", said Jack Maurer, Director of Corporate Communications. Mr. Maurer said the company has not set a schedule for deciding the future of its glass business. "We are very much in the evaluative stage right now". Questions about the future of a major industrial employer raised immediate concerns among area economic development officials. "PPG is very important to the region", said Mark Turner, of the Economic Progress Alliance of Crawford County, the county's economic development agency. "Anything that could affect a major employer in the region is always a concern", he said. The Meadville plant makes both original equipment and replacement flat glass for the automotive industry. Mr. Turner and other development and political leaders said word that PPG was considering options for its glass business came as news. Crawford County Commission Chairman Morris Waid said the plant would be on everyone's radar screen now. "There is always great concern if there is a possibility that you could lose jobs", he said. The plant's future is also a regional issue. Mr. Waid said figures he has seen indicate about 60% of the plant's employees commute from outside of Crawford County. An analysis of PPG's plan was contained in an annual report the firm's management filed 21 February 2007 with the Security and Exchange Commission. The company reported earnings from making glass for auto manufacturers decreased by USD 9 million in 2006, and that followed an earnings decline of USD 30 million in 2005. The filing indicated significant changes in the domestic auto industry, including the loss of US market share by General Motors, Ford and DaimlerChrysler. "This has created a challenging and competitive environment for all suppliers to the domestic OEMs (original equipment manufacturers), including our operating segment", the management analysis reported. Meanwhile, some industry watchers told the Pittsburgh Tribune Review in early February that they would not be surprised to see PPG sell off its glass businesses, as a result of high energy costs, foreign competition and the downturn in the domestic auto industry. "It wouldn't be a big surprise, even though PPG is a strong and active glassmaker, to see them sell the business", Rick Wright, technical consultant for the National Glass Association, was quoted as saying in the 4 February 2007 edition of the Tribune Review. However, Charlie Anderson, executive of the Meadville Area Chamber of Commerce, said the track record of the Meadville plant gave him hope that it would thrive. "What gives me confidence is that PPG has had a very good success rate in the Meadville area both with their employees and with production", Mr. Anderson said. "This plant has been very successful over the years. They are good to their employees, and they have been a very good corporate partner in the community".
