Chlor-alkali and Derivates Products PPG to Acquire Chlor-Alkali Manufacturer Equa-Chlor

Editor: Dr. Jörg Kempf

PPG Industries has reached an agreement to purchase certain assets of Equa-Chlor, a producer of chlorine, caustic soda and muriatic acid. Equa-Chlor, a privately-held company with 65 employees, maintains its singular manufacturing site and business headquarters in Longview, Wash. The deal is expected to close during the first half of 2011, subject to normal closing conditions. Financial terms were not disclosed.

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PPG currently manufactures chlor-alkali and derivates products in Lake Charles. (Picture: PPG)
PPG currently manufactures chlor-alkali and derivates products in Lake Charles. (Picture: PPG)

Pittburgh/USA – PPG plans to acquire Equa-Chlor’s manufacturing operations, which produce approximately 220 tons per day of chlorine. In addition, PPG will acquire Equa-Chlor’s railcars, which PPG can integrate into its existing fleet. This will enable PPG to optimize overall railcar usage, reducing future capital requirements and logistics costs.

In addition, PPG expects to achieve synergies related to administrative functions and to reduce overall U.S. transportation costs given Equa-Chlor’s geographic position. The acquisition is expected to be accretive to PPG earnings within the year and to generate positive cash flow from operations in 2011.

PPG currently manufactures chlor-alkali and derivates products in Lake Charles, La., Natrium, W.Va., Beauharnois, Quebec, Canada, and through a majority-owned subsidiary in Kaohsiung, Taiwan. These products are essential to everyday life and are used in many end-use markets, such as purifying drinking water and making bleach, paper and pharmaceuticals.

“With the acquisition of Equa-Chlor, PPG’s chlor-alkali and derivatives business will gain a strategic foothold in the western United States, in addition to improving our ability to supply key customers throughout the country,” said Michael H. McGarry, PPG senior vice president, Commodity Chemicals. “We believe Equa-Chlor will be a nice complement to PPG’s chlor-alkali and derivatives business.”

“We believe this is an outstanding development for our customers, employees and other business partners,” said Clay Pace, president and CEO of Equa-Chlor. “We are committed to a seamless transition for all of our employees and business partners, building on the respective strengths of PPG and Equa-Chlor.”