PPG Forms New Fiberglass Research Unit; Closes Existing Center
The fiberglass research, technical services, and engineering functions of PPG Industries (Pittsburgh), are merging into a new science and technology organization. During the union, 56 fiberglass scientists, engineers, and technicians will transfer to technical facilities in North Carolina and the Pittsburgh area from the O'Hara Township, PA research center, which will close by mid-1999.
"Twenty-seven scientists and engineers will relocate to the technology center near our fiberglass plant at Shelby, NC and 12 will move to a similar center at the Lexington, NC plant," says Kevin Sullivan, VP of fiberglass for PPG. "Another 17 people will transfer to the Harmar Township glass research center, continuing to work on fiberglass-related research."
As a consequence of the functional restructuring and the shutdown of the research center's melting furnace, 25 jobs will be eliminated at the O'Hara facility, Sullivan says. Ten other positions will be eliminated before the facility is closed. Charles Smith, formerly director of PPG fiberglass research, will head the new unit as director of fiberglass science and technology. He will be based at PPG's Pittsburgh headquarters.
Sullivan cited strong downward pricing pressure from Asian imports and increased customer expectations as the driving forces behind the consolidation. The new organizational system will deliver fast-paced, disciplined process and product development that is integrated closely with manufacturing, marketing, and customer service, Sullivan says.
"The decision to close the O'Hara facility was not taken lightly, and we deeply regret the pain and disruptions resulting from the terminations related to its closing," he says. "However, a more focused, integrated science and technology organization is vital for sustaining and increasing our competitive advantage for the benefit of our customers around the world, and to assuring a profitable future for PPG's fiberglass businesses."
Employees who lose their jobs from the reorganization will receive counseling and assistance in seeking new employment opportunities. Severance benefits will also be paid.
PPG is the world's second-largest producer of continuous-strand fiberglass used in reinforced plastics, electronic circuit boards, and other applications. The company, which earned $801 million on sales of $7.5 billion in 1998, is also a leading producer of coatings, flat glass, and chemicals. Globally, PPG employs more than 31,000 people, including about 4,800 in its fiberglass businesses.
For more information, call 412-434-3131.