PPG Purchases Land in Tianjin and Expands Production

Oct. 23 2006, TEDA government and PPG Coatings (Tianjin) Co., Ltd. Signs Land Transfer Contract, and PPG bought the 60,000 m2 of land adjacent to its Tianjin plant. Relevant Tianjin and TEDA Government Officials, including Mr. Pi Qian Sheng, Mr. Ni Xiang Yu and directors of TEDA Construction Bureau, Economic Development Bureau, Trade Development Bureau, Environmental Protection Bureau, Tax Bureau and Human Resources Bureau will be present at the ceremony. Vice President and Managing Director of PPG Asia Pacific, coatings business, Mr. Viktor R. Sekmakas, PPG China Vice President Ms. Cathy Yan and other senior management of PPG shall be at the signing ceremony. The newly purchased land shall be used for expanding the production capacity of automotive coatings, industrial coatings, and also for new investment plans.

PPG Coatings (Tianjin) Co. Ltd. was registered in TEDA in April 1994, with the total investment of US$ 23.8 MM, and covers an area of 40,000 m2. PPG provides high quality automotive, industrial and architectural coatings to China market. With the rapid development of automotive and industrial coatings market, PPG has expanded its production capacity to 45,000 tons. Since coming to Tianjin, with the support and help of TEDA government, PPG has been maintaining rapid development, with a great prospect. Up to now, PPG has been enjoying a 2 digital growth. The production has developed from 5 days 8 hours to 7 days 24 hours. The number of employees has also increased from tens of people to over 700. In 2005, the sales nearly reached RMB 1 billion. In 2005, to meet the needs of customers, PPG set up new labs, production lines for water coatings, wood coatings, and also service center for High Performance Architectural Coatings. PPG has also invested a new production facility for base coatings, covering an area of 4000m2. The newly purchased land can ease the urgent need for expanding production, better satisfy the needs of customers and therefore help PPG to maintain rapid development.

The PPG plant in Tianjin operates with global quality standards, which ensures its customers to have access to the newest technology of PPG products produced in China. PPG Tianjin was appraised as TEDA's yearly STAR enterprises in the past 8 years and "Tianjin Safety and Environment Protection Leading Enterprise" and "China Best Foreign Investment Enterprise" for the past 6 years. For 2003 and 2004, PPG Tianjin was chosen as 10 of the "Best Employer in China" by Hewitt Consulting Firm and Harvard Business Weekly.

About PPG

Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company employs more than 30,000 people and has 125 manufacturing facilities and equity affiliates in more than 20 countries. Sales in 2006 were $11 billion. PPG shares are traded on the New York and Philadelphia stock exchanges (symbol: PPG). For more information, visit www.ppg.com。

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