U.S.-based PPG Industries has reached a definitive agreement to sell substantially all the assets of its Mt. Zion, Illinois, glass manufacturing facility to China-based automotive glass manufacturer Fuyao Glass America Inc.
The sale in the United States is expected to close in the third quarter 2014, subject to customary closing conditions. Financial terms were not disclosed.
The Mt. Zion facility was built in 1959 and converted for float glass production in 1978. The facility currently manufactures glass for use in residential and commercial construction markets.
Fuyao plans to rebuild and retrofit the facility's two production lines to manufacture automotive glass. Fuyao has been PPG's business partner for 13 years, and PPG will continue to operate the plant for up to one year, producing Sungate coated glass and clear glass. The production for these products will eventually be shifted to PPG's other North American float glass manufacturing sites.
Fuyao Glass Industry Group Co. Ltd. has been listed on the Shanghai Stock Exchange since 1993. It employs more than 19,000 people in China, Hong Kong, America, Europe, Australia and Russia. Its main customers are automobile brands like GM, Ford, Honda, Isuzu, Toyota, Mazda, Audi, Volkswagen, Citroen, and Mercedes.