An introduction to

PPG Industries

PPG is . . . A global maker of paints, coatings, chemicals, optical products, specialty materials Founded in 1883 Operator of more than 155 manufacturing facilities

PPG is . . . 38,000 employees in 25 countries. Headquartered in Pittsburgh, Pa. Owned by 154,000 shareholders Composed of 4 major product areas: • Automotive & Industrial Coatings • Performance & Applied Coatings • Optical & Specialty Materials • Commodity Chemicals

R&D PPG invests hundreds of millions of dollars each year in developing new and improved products and processes as well as adapting current technologies to new markets.

PPG coatings sites in Europe 22 Manufacturing Sites

3 Development Sites

Milano

HQ

Quattordio Felizzano

Caivano

PPG Automotive Coatings Overview

• PPG is the world’s leading supplier of automotive coatings – Products supplied in 37 countries – Manufacturing sites in 15 countries – Laboratories in 17 countries • Full portfolio of coating products and material-process management services

Global Manufacturing

PPG Automotive Coatings Overview

• PPG is the only coatings supplier to supply all global automotive companies.

PPG ITALY CUSTOMERS 

Aabsal (Iran)



Lancia (Italy)



AIDCO Press (Iran)



Land Rover (England)



Alfa Romeo (Italy)



LDV (England - Italy)



Ariakian (Iran)



Mercedes (Egypt)



AR Machine (Iran)



Nissan (England - Egypt)



Bahman Group (Iran)



Pakshoma (Iran)



Bertone (Italy)



Piaggio (Italy)



BMW (England)



Pininfarina (Italy)



Decoma (England)



PSA (France - Slovakia)



Ettehad Motor (Iran)



Renault (Spain - France - Romania)



Ferrari (Italy)



Saipa (Iran)



Fiat (Italy – Poland)



Saipa wheel (Iran)



Ford (Germany)



Sevel (Italy)



FSO (Poland)



Suzuki (Hungary - Egypt)



G.M. (Egypt)



Tagaz (Russia)



Honda (England)



TOPCO – Bon Ro (Iran)



Hunday (Poland)



Top Khodro – Mercedes (Iran)



KIA (Slovakia)



Toyota (France - England)



Kerman Motor (Iran)



TPCA (Czech Republic)



Iveco (Italy)



VW (Germany)



Iran Khodro (Iran)



Zagross Khodro (Iran)

VOLUMES & PRODUCTS 9%

PPG QUATTORDIO 19%

19%

Adhesive & sealant SB Paint Pretreatment SB Smal Batch Resins

23%

16%

WB Paints Tint Pastes

1%

13%

PPG CAIVANO 6%

4%

3% Decorative Resins

29%

Ecoat Binder + Paste

Clear Coat Primer 58%

Other

PPG QUATTORDIO (AL) Water Basecoat Manufacturing

ton

9.000 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 1999 2000 2001 2002 2003 2004 2005 2006 2007 EST.

PPG CAIVANO (NA) Resin Production

Typical OEM Coating System

What is a Paint ? 

Binder Resin  Polymer  Vehicle

- Additive



  

Pigment Additives Solvent

- Solvent

- Resin - Pigment

Function of each material 

Binder – film’s properties  Hardness  Flexibility  Appearance  Adhesion  Durability

Pigments - color, hiding, UV-protection  Additives - flow, durability  Solvents - flow, leveling 

Basecoat Solventborne

Waterborne

Solvent 50%

Water 49%

Polyurethane –Acrylic Solvent 16% Solids 50%

4.1 #VOC / Gallon

Solids 35%

1.6 #VOC / Gallon

Clearcoat 

Epoxy/Acid



2K-Isocyanate

(polyester-acrylic/aliphatic polyisocyanate)



Powder

Typical OEM Line

Rinse Cycle

E-Coat

Primer

Sealer

Sanding

Cool

Bake

Cool

Bake

Clean, Pretreatment Body-in-White

Basecoat

Sanding

Inspection

Cool

Bake

Pick-Up

Pre-bake if WBBC

Clearcoat

Basecoat Market Direction Overview



Designed for the high colour needs of the European OEM market.



It provides excellent colour with class leading smoothness.

Clearcoat Market Direction Overview



Clearcoat will remain predominately a SB based technology



2K growing relative to total performance potential and paint shop flexibility

Overview

PPG Scratch Resistant clearcoat Ceramiclear® • PPG is the industrial leader (Mercedes in 2002) • New standard in scratch resistance properties (>80% gloss retention in dry and humid tests)

• Use of nanomaterials in: 1K Acrylic-Melamine, Powder, 2K epoxy-acid

PPG Automotive Coatings Overview

More than just paint technologies In addition to the protective and decorative products, PPG also offers improvement to the OEM’s process

Specialty Chemicals Added Value Services

Compact Cycle: Primer’s elimination

Bake

Bake Rinse Cycle

E-Coat

Sealer + Gel Bake

Primer

Sanding

Inspection

Sanding

Basecoat

Interior

Cool Bake

Clearcoat

Pick-Up

Flash or Pre-bake

Cool

Clean, Pretreatment Body-in-White

Cool

Overview

PPG Goals for Compact Coating Systems Overview

Economical • Eliminate or Combine Layers • Reduce Operating Support • Lower Investment Environmental • Reduced VOC Emissions • Reduced CO2 Emissions • Reduced hazardous waste

Preserve Quality • Appearance • First Time Capability • Regulatory Compliance • Warranty • Field Performance

Energy • Reduced Total Energy Consumption

Environment