PPG Industries and Devold AMT AS has announced they have signed a letter of intent to form a 50-50 joint venture to manufacture glass-fiber reinforcement fabrics for the North American wind energy turbine market.
The new company, to be called PPG-Devold, leverages PPG’s infrastructure and position in the U.S. market and Devold’s investment in stitched reinforcement technology and customer relationships. The JV will include construction of stitched reinforcement fiber glass production lines at PPG’s wholly-owned fiber glass plant in Shelby, NC, USA. By establishing manufacturing in the United States, Devold AMT takes an important step toward becoming a global supplier to the wind energy industry. The transaction is expected to close by early 2007 and is subject to the negotiation and execution of definitive transaction documents, approval by the board of directors of Devold’s parent company, Hexagon, and regulatory approvals. Financial terms were not disclosed.
