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PPG Industries Closes Sale of European Fiber Glass Business

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PPG Industries (PPG - Free Report) has completed its earlier announced sale of its European fiber glass operations to Japanese glass maker, Nippon Electric Glass Co. Ltd. (“NEG”). The terms of the deal were not divulged.

The transaction includes manufacturing plants in Hoogezand, Netherlands, and Wigan, England as well as a R&D facility in Hoogezand. PPG Industries earlier said that it plans to use the proceeds from the transaction for general corporate purposes.

The European fiber glass operations, which had sales of around $150 million last year, makes reinforcement materials for thermoset and thermoplastic composite applications, and caters to transportation, energy, infrastructure and consumer markets.

PPG Industries, last month, inked a deal to sell its 50% ownership interests in its two PFG Fiber Glass joint ventures to Nan Ya Plastics Corp. The deal is expected to close by the end of 2016. Nan Ya Plastics Corp. is affiliated with Taiwan-based Formosa Plastics Group and it currently controls the other 50% ownership interest in the joint ventures.

While PPG Industries is taking steps to cut costs and grow organically, it faces significant currency headwind. Moreover, the company faces macroeconomic challenges and some of its end-markets including heavy-duty equipment and marine still remain sluggish.

PPG Industries has a Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks in the chemical space include Innophos Holdings Inc. (IPHS - Free Report) , Olin Corp. (OLN - Free Report) and The Chemours Company (CC - Free Report) .

Innophos Holdings sports a Zacks Rank #1 (Strong Buy). The company has an expected earnings growth of 48.6% for the current year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin, also a Zacks Rank #1 stock, has an expected earnings growth of 46% for the current year.

Chemours is a Zacks Rank #1 stock with an expected earnings growth of 7.6% for the current year.

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