Oak Creek plant escapes axe in PPG restructuring

PPG Industries Inc. said it plans to close several plants and reduce employee headcount under a restructuring plan announced Wednesday, but no job cuts are expected at its plant in Oak Creek.

The Pittsburgh-based company will close a glass manufacturing plant in Canada and shut down "several coatings manufacturing" plants, including facilities in Canada and the Netherlands. Staff reductions will take place in PPG´s coatings businesses in North America and Europe. The company will also idle one line early next year at its Mt. Zion, Ill., glass plant.

PPG spokesman Jeremy Neuhart said the Oak Creek industrial coatings plant will absorb some of the production from the Canadian plant. For now, no jobs are expected to be added or eliminated in Oak Creek, he said.

The restructuring will result in about $160 million, or 65 cents per share, in pretax charges in the third quarter. The plan is expected to save the company $100 million in annual pretax costs by the end of 2009.

Also Wednesday, PPG (NYSE: PPG) issued a warning that its third-quarter earnings will be lower than previously forecast, due to hurricane-related shutdowns and weakness in the automotive sector.

The company said these items will likely affect its third quarter after-tax earnings negatively by between $35 million and $40 million, or 20 cents and 25 cents per share.