PPG Industries (NYSE:PPG) today announced that it has entered into a technology license agreement with China-based Henan Billions Chemicals Joint Stock Co., Ltd., that will provide Henan Billions the right to use PPG’s technology for the manufacture of chloride-grade titanium dioxide (TiO2) on a worldwide basis. This agreement completes the license of PPG technology previously announced by both companies. Terms of the license agreement were not disclosed. “We are pleased to reach this worldwide technology license agreement with Henan Billions as it should expand the global supply of chloride-grade titanium dioxide, as well as provide a commercial opportunity for PPG technology,” said Charles F. Kahle II, PPG chief technology officer and vice president, coatings research and development. Henan Billions is currently a supplier of sulfate-grade TiO2 to PPG. In June 2012, both companies announced a memorandum of understanding regarding PPG’s licensing of certain chloride-based technologies to Henan Billions for use at Henan Billions’ titanium dioxide refinement facilities in China. PPG previously manufactured TiO2 using the chloride process at its chemicals facility in Natrium, W. Va., and sold titanium dioxide pigment for coatings and other end-use applications. Titanium dioxide is a raw material widely used in the paint and coatings industry as a pigment to provide hiding, durability and whiteness characteristics. About Henan Billions Chemicals China-based Henan Billions Chemicals Co., Ltd., produces and sells titanium dioxide, zirconium and aluminum sulfate. The company is located in Jiaozuo City, Henan Province, and had 2011 sales of about $300 million. Its shares are traded on the Shenzhen stock exchange. PPG: BRINGING INNOVATION TO THE SURFACE.(TM) PPG Industries' vision is to continue to be the world’s leading coatings and specialty products company. Through leadership in innovation, sustainability and color, PPG helps customers in industrial, transportation, consumer products, and construction markets and aftermarkets to enhance more surfaces in more ways than does any other company. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in more than 60 countries around the world. Sales in 2011 were $14.9 billion. PPG shares are traded on the New York Stock Exchange (symbol:PPG). For more information, visit www.ppg.com. Bringing innovation to the surface is a trademark of PPG Industries Ohio, Inc.
Jefferies analysts note that recent construction spending data indicates a cycle rotation away from construction-exposed names and toward industrial- and durable goods-levered firms could be playing out.