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Published on January 31, 2008

PPG Coating (Thailand) has awarded a three-year contract to Dimet (Siam) for the supply of products for distribution across Southeast Asia.

PPG Coating (Thailand) is the Thai unit of PPG Industries, an American manufacturer of glass and chemical products, while Dimet is well known as a manufacturer of hi-tech protective coatings.

The companies first interacted when PPG acquired the coating business of the Ameron Internation Corp in 2006 and began expanding the business in Europe, Africa, the Middle East, New Zealand and Australia, said PPG's business director for protective and marine coatings in Southeast Asia, Chris Davis. At that time, Dimet had been producing coatings for Ameron for more than 25 years.

The new partnership contract will run for three years until December 31, 2010.

Davis said PPG would first distribute products from Thailand to the Philippines, where products worth Bt2 million had already been ordered.

Although it is expanding its business, PPG Industries has no present intention to buy Dimet's shares, Davis said.

Earlier this month, PPG Industries completed the acquisition of the SigmaKalon Group, a producer of coatings based in the Netherlands and exporting to world markets. The acquisition will benefit PPG's business performance in Europe, Africa and the Middle East, Davis said.

"In 2006, PPG Industries generated revenue of US$1.1 billion (Bt36.51 billion) from its businesses around the world. We expect to record revenue of $1.3 billion for 2007 and are aiming for $1.5 billion this year, with the increase coming from companies we have acquired," he said.

Dimet (Siam) managing director Suraphol Rujikarnchana said the collaboration with PPG Coating would boost the proportion of Dimet's products that were being exported from 2 to 5 per cent this year.

"I believe Dimet has a chance to expand its business both domestically and abroad," he said.

Nalin Viboonchart

The Nation