Document ppgGwZDY4gYyKE830r96kmjZD

pfhS INDUSTRIES, INC. 1968 ANNUAL REPORT INDUSTRIES | BB 0001777 | p H =iv'.'r . '..* >; Tr?- ' rt'AWJ-fli!K'.rtOOOCTSr^M '^;55S5i55isig sii .s'.-v Si! M .s^w-S ?? ^x'aWarnrniiM^ ^ar#]e^pi^t'Pr**f!M*^^ .-.^jproW)?^ and forji^fctiti&iapgQiirai^ ' ' ' wit nf ihao* lnirfiiQtTiiliY'KifirtuVaV Arvbfifil'lfi'r J' *'t'.' -7'H' --,. ^T7'-.V'V-: ;_.' .-_. .yv -. *.i-V' . .-* /';. ;, , -;^inpecf strang ' jWC^tp^w 7>- Outfaitirtrt cOndriij .;' 'sSmffectisd M"t^incdwSrM^atta ,:%:' guartw*iitl96&To addW~ ;i,o< Oki^nQpeorniT """ vf>dfdem approved, a - ^lof the common stock;* ;-'-Novomtrt7,196ft?& -. . . * ^Thtfehajr^jo'tn' the.cc .; -~1` from Pittsbnrgh Flateffi ,, L.__ ^ PPGtN CtUST^JES, rnt^ie^i^dro^ ' accurately tte eompafny'i^e^l^^-1 *' ' ` diyewjjcatkin,,d?ame>effectlTO^q 'v^Xpril a fi* ibuCT INNOVATIONS... A LEVERAGE TO GROWTH '! '**- , /r- - 1 \ "y .a*Ss'^ V ; , `_ * -< ` - *; * i- %*" v,1'- v. , -. .. * ' ^ " ': V. r' A kitchen range top that's as smooth i '-y: ylding new and more sophisticated Much of the emphasis in chemical as glass and has no vi3ible:"burners*' ' .glass products for automotive use. The research is concentrated on process and . an autowindshieldwiththeradio-; ^-1969 PontiacGrand Prix, introduced.: . product development that will upgrade antenna imbedded in tt .i`. . rubbercoated >:^|ast fall, featured a radidantenna that'1-. -; basic commodity products, a program , fiber glass yarn thaf-Can double tire flfa^' .was embedded In the windshield, an*- - that already is a big factor in sales 'J . l\ a quality interior enamel;.wlth,a;->; ;^ fnnovatkn that eliminated the standard; . growth. The most recent product inno-- -,'y water base .caustic sorfarirvbead: ^^r whip. antenna and the safety and ;; vation in this continuing program came: ;*r form.; : va fiber glass strand no thicker'' "wandalism hazards connected with itf V' in late1968 when the Chemical Divi-^.;:^ than a human hair, but hollow;,4 ari-'-A-year earlier, a rear window with a'Azy ^sion introduced the industry's first new interior latex paint that substantially^;' built-in, electrically heated defrosting. -*^ form.of caustic soda in 30 years--a outlasts other coatings. " system,.developed by PPG.fn coopetyvpelletized caustic, called Pels, that is ~.T; , ' ' - - - ' ; `V. f' ' ; ^ bon with auto company.engineers. was*; 'produced in uniformly sized beads. ~: v; These PPG products, some of which, are,:; announced. It is now available om 1C described in other sections.pt this report - severa| 1969 models.-;. : '^:;^T-ijlMa|of advances have been made in :?1i ' ' v. . hhaavvee oonnee ccoommmmoonn ttrraaiitt:: tthheeVyJilriidirnir'f--tteftjxriissrt; -v . -* ; 1 * y % the laboratory in developing hew and'7 ^-as commercial-productA^S.racently' '^Naw technology in.gla^^bfication^'^u'pgraded PPG paint products. Possibly -'fi ' markets for PPG. The J program to which PPG hascommittedyy *; . ' i:VF!- t itself. That commitment is one^f^f^Advanced developmentw^ basic building b*__*' * iformulated ^htinos. hv^.Qd even the ultraviolet rays-of the sgn^ corporate i manufacturing-; technological leadership. There are six research laboratOH^n^^^^^^^^^ eUiranN8.apRiiert;^>K, aname,-,,have:Tjeerv^successfully^ PPG-s faclmes network, '2,000 employes--some ofith^^c^^^^tmo^mough developed forautd-' .ioneufated usmg a waterbase. And renowned in their fieldsr-ttflqftQ;dt^S^?mbbife^^ilectrodepoattionrCan txfosed & research and developfr^^^gie^-^to^^^ny object that conducts enfs^develioperf^a jatex intewfr|^ past five years, theyhay^^^j^port^^^^^ PPG'a marketa for th^5^a ` ?.ai,nt''a//,.whicft mamtainfc& bhyi, aAnn iinnvueas.ttmmdenn*t no<f anbWi CV[SngTiinliH^Ii,orn\^-1-"-" spec^taf:-coa..tings. .`n. o_.w ext.end.1i :wel11l .C' \j;J IIS$ QoTnIgQIinal appearance for many yeara^^ with $32 million of ^ | T968,^;^eyou^,th^ auto industry. y ; -. Another major convenience for the - w'y-' ifSZ PPG'*' Planned spendift#r^^-^^ frm 9,ass portant area in 1969 wUf'b^MMrbr $3S^ & belted tire opened a nsW aiid'TMw O1?^ ceramic. ^ W minion ^nntinuinn the. ____ _;______ - '-;:rriaterialrcalled Harcuvit,for use.as* benefits resultiog froirw in the form of new and irTfprbirettf^ products and processes,-a$ innovations, have enabled ;Uaf importance to 'PPG*s growth^ >. w the;raMarch. and deveiopment.wor^^i '^onddeted on processes and. manufa^| H&Vjpi3$!S833&i Tiara TR-32 titanium dioxidepi :V-t<i8ing a.highly sophisticated - {process technology based dh-Yeac^gs^>^^^S.vy?ft .T ; of. PPG research and develofwneptJ^^^^^^?^ "'Similarly, development Of a ' _ehlormatK>n were instrumentai tftrthfr,-.wfttjrtffjgw^riar-^- -~--- . '.decision to add two units '' Charles^ Louisiana, for . c^,oride monom^^^^' , PPGTs fund in chemical mofatencuhfnaoc! turih^ilp8|Sg^-;^o<>qs[|a<ygflagw^;^^ .yhetnicalcon^rfaxin 0^9 ^99. The project*^ P^^pmhe^ip sbejats.^ I for * -> compounds, in -;^. _ teirttifftof iyopd@ir. * ^na:ltqa^.t^nAW products ^m^jpopMsing supportia^ TOW^jKW(WfllOpment to the ^ : ' lwihirket^: ^' 1 frisores-that the-. - ,-' fothe 9 The past year was significant for the Glass Division in terms of new facilities, new technology and new markets. Aggressive marketing and new, more efficient manufacturing facilities were reflected in continued sales growth and contribution to corporate profits. A significant highlight was the com pletion and uniquely successful opera tional start-up of PPG's third float glass plant, a multimillion dollar facility at Meadville, Pennsylvania. In a perform ance unparalleled in the industry, the first shipments of glass for tempered automobile side and rear windows were made from Meadville in midOctober--less than three days after the start of production. The Meadville plant, which produces more than 300 tons of glass every 24 hours--up to 50 million square feet a year--uses the largest float bath ever constructed. It is the only plant in the nation designed exclusively for the manufacture of glass by the float process, which eliminates grinding and polishing operations. Increased demand and changing style requirements by the auto industry resulted in plans for a major expansion of the Tipton, Pennsylvania, plant, the world's most modern automotive glass fabricating facility. The expansion, announced at year's end, will result in a 25 per cent increase in the fabrication of side and rear automobile windows. With the expanded facilities, the plant will have a peak production capability of up to five million units a year. With today's domestic automobiles containing an average of about 50 square feet of glass, the automotive industry, including both original equip ment and replacement business, is one of the Division's largest markets. PPG technology made it possible to produce windows which do not require costly metal parts. Since 1966, the amount of glass in side windovys has increased 15 to 20 per cent. PPG played a major part in the commer cial development of heated rear windows which defog themselves, an innovation based on several years of research in this technology. In addition, PPG was instrumental in the commercialization of a radio antenna that has been incon spicuously placed in windshields of the 1969 Pontiac Grand Prix Models. Expansion of production facilities went beyond the automotive segment of the transportation industry. PPG is a pioneer and leader in the manufacture of aircraft glass. Ground was broken in May for a new aircraft and specialty glass plant near Huntsville, Alabama. This facility will be completed in the first quarter of 1969, helping to maintain and extend PPG's leadership in this important market. The Division is developing the capability of producing aircraft trans parencies of glass and glass-plastic laminates. This technology will enable PPG to market a complete line of transparencies for the aircraft industry. PPG scientists developed, and the Division has manufactured exclusively, the chemically strengthened glass being used in the windshields and canopies of the F-111A tactical fighter. The same type of glass could be used in supersonic transports. This activity also has enhanced PPG's abilities and sophistication with respect to modified^ application of chemically strengthened glass in automobiles, A lightweight armor which has greater strength than ever before has been developed for the military, and PPG's technology in this field resulted in a Secret Service order for bullet-resistant glass for the new presidential limousine. In addition to sophisticated aircraft and automotive glass, PPG product inno vations resulted in other upgrading of basic glass to specialty status. The residential market, including multi family units, is a major user of glass, including an increasing portion of insu lating units, such as PPG Twindow, also an upgraded product. The Divi sion's share of the residential construc tion market increased substantially in 1968, with an attendant increase in specialty product sales. Other upgraded products, including Herculite K tempered safety glass, are finding increasing acceptance for residential construction. Many states and communities are reviewing their building codes to make mandatory the use of tempered safety glass in sliding patio doors and in storm doors. PPG also maintained its leadership m the commercial construction industry, one of its largest and most attractive markets. Here, too, there was an expanding acceptance of upgraded specialty products. Advanced research and development enabled the Division to embark on commercial production of Hercuvit, a glass ceramic that could revolutionize the design and manufacture of kitchen range tops. This attractive new material eliminates the need for exposed burners on both gas and electric ranges. Lead ing manufacturers introduced kitchen ranges with Hercuvit tops in 1968. In addition to new facilities at Mead ville and Huntsville, a new sheet glass plant was put into production at Owen Sound, Ontario, by Canadian Pittsburgh Industries Limited, a wholly owned subsidiary. The facility utilizes a refine ment of the Pittsburgh Process for making sheet glass. The Division's new sheet glass plant at Fresno, California, enabled PPG to widen its base on the west coast. But the large volume of foreign glass being imported into that market continues to be a deterrent to profitable operation of that modern, highly efficient facility. Total import volume of sheet glass during the year exceeded 1967 levels, amounting to more than 30 per cent of total domestic consumption, a share considerably larger than that affecting any other major American industry. PPG is continuing to seek relief from appropriate government agencies. In summary, the Glass Division con tinued its program of carefully planned expansion and product innovation in 1968. The progress and achievements in 1968 are expected to provide the impetus for continued sales and earn ings growth m 1 969. I__0B 0001739 j TOP' National Guardian Life Insurance home office in Madison, Wisconsin, reflects its environment in its LHH Solarbronze Twmdow units and spandrel areas. PPG is a leader in technology for environmental control through use of special glasses. ABOVE: Anthropomorphic dummy is shown rebounding from experimental windshield as part of a continuing auto safety program at Harmarville, Pennsylvania, research laboratories PPG is one of few automotive suppliers to possess such sophisticated testing equipment. ABOVE: Like a captain on the bridge, this driver pilots a load of float glass to temporary storage at the new Meadville, Pennsylvania, plant. The glass will be with drawn from stock and cut to sizes specified by a computer in response to customer orders ABOVE: Technician inspects sheet of new Hercuvit glass ceramic material at Creighton. Pennsylvania, plant The new material, which transmits infrared heat, may revolutionize design of kitchen range tops Leading range manufacturers in 1968 introduced models using Hercuvit. 11 00 01 790*7 Houston Chemical Company plant in Beaumont, Texas, is a major producer of antiknock compounds, antifreeze, and motor vehicle and aircraft fuel additives 13 New production facilities, new products and significant organizational changes aracterized Chemical Division activi- s in 1968 as efforts were intensified to combat the effect of price softness that continued to plague the entire chemical industry. By year's end, the Division set new records for tonnage shipments of virtually every major item it produces. Most plants were operating at near capacity and several were exceeding design capacity in fulfilling demand. Despite this, profits were unsatisfactory because of price weakness. Encouragement that markets for major chemicals are firming was offered by price increases late m 1968. The effect of these increases, however, will not be realized measurably until 1969 because of long-term contracts on high-volume items, such as chlorine. Substantial management attention is being directed to Sherbro Minerals Limited, the rutile mining subsidiary in Sierre Leone, West Africa, which has been hampered by start-up problems. PPG's share of the accumulated loss 968 was 54,925,000. Although addi^^Bnaf losses are expected in 1969, it is anticipated that the facility will be operat ing at normal capacity by year's end. A major share of the corporation's 1968 capital expenditures was directed to expansion and construction of new Chemical Division production facilities. Late in the year, PPG significantly strengthened its position as a supplier of pigments with the start-up of two plants. The first was a new titanium dioxide plant at the Natrium, West Virginia, chemical complex. Demand for this important pigment, which PPG calls Tiara titanium dioxide, has been growing at the rate of four per cent a year. It is being produced by a superior process based on PPG research and technology. Primary markets for Tiara pigments are the paint, plastics and rubber industries. The second plant to go on stream in 1968 was the silica pigments facility at Lake Charles, Louisiana, for the pro duction of quality pigments for the rubber and paper industries. Other expansions in 1 968 that are part of PPG's plans to develop one of the most modern and efficient networks of chemical plants in the industry included: --Completion of a maior electric power expansion at Lake Charles to provide power for a new chlorine production unit. Originally scheduled for mid-1 968 start-up, the chlorine facility will begin production in early 1969. --Construction of the second stage of a vinyl chloride monomer plant at Lake Charles. Slowed by a construction strike, the plant is scheduled to go on stream in early 1969. This unit, based on PPG-developed technology, will utilize a substantial percentage of the new chlorine plant's production, assur ing a ready market. Demand continues strong for this monomer, --Expansion of the production capability of Kalium Chemicals Limited of Sas katchewan, making this jointly held subsidiary one of the world's most efficient potash producers. Modifica tions in processing equipment resulted in a significant increase in capacity with a relatively low capital addition. Price increases on potash were announced late in the year and these should improve profitability. --A plant expansion at Standard Chemical Limited of Quebec, which doubled its capacity to produce sodium chlorate, a primary bleach for pulp and paper makers. Prices for this product have shown some slight recovery from previous unrealistic lows. In addition to these production improve ments, PPG's Board of Directors, in August, approved plans for an invest- TOP. A technician samples a fiery stream of molten sodium silicate flowing into the ' t processing unit that will transform it into ,in pigment The new plant at Lake Charles. Louisiana, will substantially increase PPG's capacity for this important pigment BOTTOM. The twin monolithic towers at Natrium, West Virginia, are part of the Chem ical Division's new facility for production of Tiara TR-32 titanium dioxide pigments 14 ment of more than SI 50 million for development of a new chemical com plex in Puerto Rico, beginning in 1969. The project includes a joint venture with Commonwealth Oil Refining Company to build one of the world's largest olefins plants, with an antici pated annual capacity of one billion pounds of ethylene. The project also involves the construction of a series of PPG wholly owned plants, near the olefins facility, for the production of chlorine, caustic soda, vinyl chloride monomer and ethylene glycol. A number of steps were taken during the year to strengthen management for profit within the Division. Vice presidents and general managers were elected to head the Columbia Cement Company and Houston Chemical Com pany. Within the Industrial Chemical Division, new positions of Vice Presi dent, Marketing, and Vice President, National Accounts, were created. Also, additional business management posts were created in four areas--chlor-alkali, pigments, inorganic chemicals and organic chemicals. Additionally, the Division continued to concentrate on applications research Last year, for example, PPG introduced the first new form of anhydrous caustic soda m more than 30 years. Called Pels, the uniformly sized beads present less surface for dust generation and offer Significant handling advantages. The new, modern production facilities that went on stream last year, as well as those that will start up early this year, are expected to place the Division in a stronger position in 1969, Initial benefits resulting from the steps taken to strengthen Chemical Division man agement, and a continuation of the apparent trend to price firmness in the chemical industry should result in additional sales and earnings growth for the Chemical Division in 1 969, BOTTOM LEFT: A workman adjusts controls at the titanium dioxide pigments plant at Natrium, West Virginia. The plant will produce several grades of such pigments, which are widely used in the paper, paint, rubber and other industries. TOP. Enough power to provide total electric living for a small city will be consumed daily in this new chlorine cell room nearing com pletion at Lake Charles, Louisiana. Sales for chlorine remain exceptionally strong. BOTTOM RIGHT: A new product for the Chemical Division in 1968 was pelletized caustic soda, called Pels. It is the first new form of caustic soda in 30 years. J BB 0001792 | 15 COATINGS & RESINS DIVISION | BB 000 H93 | Washing machine parts emerge from a new electrodeposition primer bath at Whirlpool Corpo ration's Clyde, Ohio, plant. Whirlpool switched to the process to obtain a more uniform coverage, vastly reducing possibility of corrosion. The bath contains 18,500 gallons of PPG Powerprime coating. 16 17 I 00 000122^-1 TOP Salesman in Pittsburgh Paints store introduces customer to new color system and display. Exceptionally favorable reaction has been shown to new system. LEFT' An eerie glow is produced by high energy electron source which permits extremely fast, almost heat-free curing of coatings, even on flammable substrates PPG is a leader in the process of electron curing, shown here at the plant in Plamview, Illinois. IGHT Workman attaches quick-connect Boupling to one of a battery of resin feedlines at PPG's Delaware. Ohio, coatings plant. Unique computer process controls enable plant to operate efficiently even when mixmq small batches of specialty coatings 18 >M s.. s In 1968, the Coatings & Resins Division achieved record sales and earnings. Major reasons for these substantial increases were: --growing penetration of profitable industrial markets utilizing advanced technology. --continued refinement of trade paint sales and distribution techniques. --greatly improved earnings of foreign operations. --increased efficiency and flexibility at all stages of production. In trade paint operations, continuing progress was made in a computerized system linking sales with production through a nationwide network of 19 trade sales distribution warehouses. An unprecedented 98 per cent of all orders from the company's 400 paint centers and some 7,000 dealers were shipped the same day received. The marketing of linseed oil, the Rez line of wood stains, and all brush products was integrated into the trade products marketing organization. Broader retail sales should result from marketing them nation-wide through the Division's many trade outlets. After extensive consumer research, a new color tinting system was intro duced for interior and exterior lines of house paints. The system offers a broader choice of modern colors, yet permits constant updating. The tech nique utilizes both new base paints and new colorants, enabling the dealer to have a broader selection of popular colors while maintaining a small inventory. Also introduced nationally after suc cessful market testing in 1 968 was a new, ultrahigh-quality wall paint-- Manor Hall latex flat enamel. This premium-priced product offers onecoat coverage on walls and woodwork, and maintains its original appearance through many years and many spotscrubbmgs. Organization of operations planning groups at major plants is improving manufacturing efficiency. These groups use computer techniques to simplify scheduling, production and handling of the many custom coating orders received, resulting in more economical material procurement and faster deliveries. Strong advances by the Division's growing industrial products organiza tion were accompanied by announced expansions of the Delaware, Ohio, industrial finishes plant and the Bloom field, New Jersey, adhesives plant. A new adhesives plant was placed in operation in Berkeley, California. The Delaware expansion, begun in late 1968, will increase by 50 per cent the production capacity of the Divi sion's most modern industrial finishes facility. The added capacity is necessary to meet rapidly increasing demands for such products as Duracron acrylic finishes, and new Duranar fluoropolymer coatings, used to pre-finish coil stock and aluminum extrusions, and for automotive refinish coatings and finishes for appliances and containers. Facilities of the Bloomfield adhesives plant, presently dispersed in several locations, are being consolidated and modernized. Capacity is being added for lines such as Plymaster film adhe sives that exhibit promising growth trends. The smaller plant in Berkeley was built to serve west coast auto motive, aircraft and aerospace industries. The Division's strong development work in electrodeposition began to bear fruit in 1 968 as increasing numbers of automotive and other metal fabri cating manufacturers converted to the sophisticated process. Highlights of the year included acceptance of the process by the appliance industry and the development of a Powercron enamel for use on aluminum extrusions. Sales of Se/ectrofoam polyurethane foam systems continued to grow rapidly, and added momentum came from the opening of two new markets High density foam was used to make remarkably true replicas of carved wood furnishings. These wood-like moldings made significant industry penetration in 1968, and a tenfold increase is expected within five years. A low-density foam system, capable of reducing typical urethane foam insulation costs by 20 per cent, was developed. This savings should expand the product's potential for use in appliances by 50 per cent. PPG capabilities in electron-cured coatings technology approached the marketing stage during the last quarter. The Division's pilot facility in Plainfield, Illinois, became one of the first in industry to apply practical tile-like finishes on standard sheets of hardboard by curing with high energy electron bombardment. The roomtemperature process converts a liquid formulation to a hard finish in seconds. Still in the development stage, between laboratory and factory, are the new products and processes that constitute the Division's continuing research investment in the future. One of these, Pittment reflective coatings, was awarded a national prize as one of the 100 outstanding new industrial prod ucts of the year. These novel coatings draw on several new research principles to produce opaque films that contain little or no conventional pigment The films possess a unique ability to reflect not only heat and visible light, but also the invisible, ultraviolet rays of the sun. Broad use of these coatings is envisioned as lighting fixture enamels, temperature control paints for storage tanks, and for many other consumer and indus trial applications. Developments such as Pittment coatings will give the Division a healthy share of the products and markets of tomorrow 7Sb 0001796 | 19 LEFT President J A, Neubauer (left) and Board Chairman R F Barker inspect winding spools at PPG's new fiber glass plant in Lexington. North Carohna The modern facility reacned full capacity in 1968 TOP RIGHT: Workmen for a division of Koch Industries, Inc . Witchita, Kansas, ready special down-the-hole tubing in oil explo ration bid The fiber glass reinforced plastic pipe is corrosion resistant and lighter in weight than metal tubing. BOTTOM RIGHT: Possibly the safest and bngest wearing tire ever developed, the bias belted tire, such as Goodyear's new Polyglas tire, has opened a vast new market for PPG's rubber-coated fiber glass yarn. 20 Expanded facilities, new technology and broadening markets resulted in a dramatic sales growth for the Fiber Glass Division in 1968--a 25 per cent increase over 1967. This constituted a climb from four to five per cent of the total corporate sales volume. The Division deepened its penetration in the high growth fields of rubberreinforced tire cord, decorative fabrics and anti-corrosive materials used in reinforced plastic pipe, storage tanks, and other products. Much of this penetration resulted from advances in product development, enabling the Division to offer superior products which found ready customer acceptance In cooperation with leading rubber companies, PPG developed a superior coated yarn for use as reinforcement in tires, hose and belting. The rapidly f growing tire market resulted in signifi t cant increases in Division sales, and this market is expected to expand even more substantially in the future. To assure a foremost position as a tire cord supplier and to meet the tire industry's vastly increasing demand for rubbercoated fiber glass yarn, a multimillion dollar expansion of the Shelby, North Carolina, fiber glass complex was begun in December The expansion will more than triple the plant's production. As the expansion began, some auto mobile producers announced they would make fiber glass tires standard equipment in 1970. This tire contains bias plies of conventional fabric and is reinforced and stabilized with a fiber glass belt around its circumference. The Division has developed a superior ! compound for coating fiber glass yarn. The tire is hailed as a major advance m automotive safety The fiber glass belt, which serves to hold the tread firmly to the road, improves treadlife. traction, bruise resistance and road-holding properties. It can be applied m combination with bias plies of any standard tire fabric. The tire industry alone is expected to use 36 million pounds of fiber glass yarn in 1 969 and virtually double that amount in 1970. Because of the superior safety and wearing characteristics of the bias belted tire, these estimates appear con servative, Fiber glass yarn could be m an even stronger position if and when the radial ply tire achieves the domestic acceptance that it has in Europe, since the yarn can be used in the tire carcass as well as m the belt. Another key factor in the Division's sales growth was the attainment of full capacity at the Lexington, North Carolina, plant, the most modern fiber tass yarn facility in the world. Full Berating capacity---at a rate to produce nearly 40 million pounds annually-- was achieved in June. By 1 969, the Division's capacity will be more than 100 million pounds. Other expansions may be necessary to supply additional fiber glass yarn for the new and expanding markets. testing. Although introduced too late for application on the first new model car production runs, it appeared that at least one Azdel part would replace a metal part before the end of the 1 969 model year. This market offers great potential. Today's automobiles contain an average of nearly 80 pounds of plastics, much of it reinforced with fiberglass. PPG and Union Carbide received awards selecting Azdel as one of the 100 most significant new prod ucts in 1 968. To keep pace with the burgeoning demand for decorative fabrics, PPG embarked on a major program for con tinued market penetration. Development and production of finer, ultra-thin yarns was achieved by PPG scientists, work ing closely with weavers, converters and stylists for improved fabric designs and print systems. Successful development of yarn and fabrics that were not even visualized several years ago buttressed the Divi sion's market position. In the field of safety, development continued on a wide-ranging, fire-safe program in conjunction with weavers and con verters to insure that finishing materials and techniques used in producing fiber ss fabrics do not alter the fabric's n-flammable characteristics. Significant inroads were made by fiber glass reinforced plastics in replacement of materials vulnerable to corrosion-- particularly in pipe and storage systems, automobiles and appliances. A great measure of the success in this area isdue to the Division's technological advances which have resulted in new types of glass fibers and new, improved binders. The market expanded rapidly when pipe manufacturers solved the problem of producing compatible fittings for reinforced plastic pipe. Growth in this area has been outstanding in the past two years and is continuing at an accelerated pace. In addition to corro sion resistance, fiber glass reinforced plastics offer advantages m lower main tenance cost and less weight. In an allied area, significant strides were made in the joint venture of PPG and Union Carbide Corporation in producing Azdel,' a family of fiber glass reinforced thermoplastic sheets that can be formed n conventional metal stamping equip ment. A major potential use for Azdel is in exterior and interior automotive body parts. Leading automotive companies have begun prototype More than 25 per cent of the Division's volume goes into the construction in dustry for insulation products such as snap-on pipe coverings, duct liner, duct wrap and metal building insulation. Marketing efforts in the fields of insula tion and air-hand ling systems were intensified The production of fiber glass roving for reinforced plastics was transferred from Shelbyville, Indiana, to the Shelby plant, resulting in increased efficiency for Shelbyville. Production at the Indiana facility now is concentrated on insulation material, and a new line to produce Textrafine, a blanket insulation made of reprocessed textile fibers, was added. This doubled the Textrafine production capability. Facilities were expanded for Glass-Flex, a flexible pre-insulated fiber glass duct for heating and air conditioning. This product has a Class I Underwriters' rating. The Division also introduced a new sister product, called Rigiduct. It is a product for fixed duct work made entirely of fiber glass. By use of structural forms of sheet fiber glass insulation, Rigiduct can be fabricated quickly on the con struction site, thereby reducing labor costs and obviating the need for metal ducts. A major PPG facility overseas is being expanded. At Silenka, a PPG affiliate in the Netherlands which produces con tinuous fiber glass filament, work began on two additional tanks--the fifth and sixth--to keep pace with the growing European demand Silenka now is the leading quality producer in western Europe and will have the capacity to serve at least 35 per cent of that market. Demand for the Fiber Glass Division's products should remain at a high level throughout 1969 while continued research and development seek to expand existing markets and create new ones. ^Registered Trademark of Union Carbide Corporation j BB 0001799_J_ trademarks These registered trademarks of PPG Industries, Inc cue used in this report, PPG Industries {monogram), Ouracron. Glass-flex, Hercuhte. Hercuvit. IHR Solar bronze, Manor Hall, Pittsburgh P/ymaster, Powercron. Power-Prime. Rez. Selectrofoam, Textrafine, Tiara. T window. Other trademarks of PPG Industries appearing m this report are, Duranar. Pels. Pittment. Rigiduct 22 i:u*rfuUiy|i. 1 BB 0001900 _M--V^. - . irnm amnmvatiM^^A ^Mmii 9t^^?v^^wArtArtaAia rafae Mft 'i'niinmai^ial ' December Assets ' Several companies have beanpun chased in prioryears for prices tiv excess of book value? of the companies;p1is^ce^%binganw>r'i;, 7 tized generallyjbv*t4i^yj - - in accordance with CorpotatiorrpclRr^7 During 1968, the amount a against net earnings was equivalent to $.14 per share, amortized balan written off agaii next four years.. Pension and fl The major portic various pension are paid to trust companies who administer these funds''*^ for future payments to retired Costs absorbed by'ihff Corporatfes^M^pf under these plans during1968 to $14,700,000. These costsprovidAf^|i^tiW^br^8k%^^fe^^^M current sen/ice ^Arior. service costsover#^-yeaf^S^p^^^'gf^^iJJbt^o^^^ ^Ariod; or less in /.Common Stock `"/in Treasury Amount (Thousands) $42,915 *1622,710 (145) -- :- eF.inanci.ng A. rrangemen*tttw ^vv*-.;t w In addition to the. use.of bantctoema^'i^ ' and long-term borrowings, seym&s other methods of financing heyy^v facilities were utiljzetFdurihg`436^^ An industrial, revenue bond- issue $6,600,000 was sold to financed new Huntsville, Alabama, agij specialty glass plant. Long/, were negotiated for new railroad tank cars and othiijL ____ tation equipment, with approximately $8,000,000^1^^^^^! times during the year,.the sold short-term commercial ........... ^ v ` J'i - S. -- 1 - : ~ V'V**?**, ' ^ ` m* . r.,* w-' -,e,Vi^ jrffip ^rrV* We have ejtmlnedjlra^hdnctal ; PPQ Industries lnc._and.rt* ooneotidsted $dbeMmee^X^^>j^jtifit(irMftnieed bitevay Jmjpr the year ended DecemberS1,,196a,-OtXexend<udd(r-^>shMni^tm1MhideedkicAl#. - nude In accordance with generally accepted.'a. ^^ditfng etandards; and accordingly * the accounting record* and euch ointhc<leuerrda--euddsiuticnhgt-e;,,W-- '>, - .inl "*-v--l"i- procedure* a* w* considered necessary stance*, We did not examine the financial itnamema. JTjjajS ` w.yvwc;j#wjpmu-?r#, ^^ni^t^try the-intemal^eyenuo.^- . ee*7iteEwhleoplnion:c<Thanage< t i^' ^ --^^^hahcWj^tion " fo^ahd th^adequatev-.r . ,, ijftral and State tax ^ ' ftKfwpk^jdeliciefioiesfotihryearsi960through' . J dtjfli^e*i 'Wfce* i S* da!t tahh r iill o-p-e-r-e--ti*one r. i omoftbeii fundi for the yeer then JhJ!oaldmkligL,%tAMMn<,y accepted accounting-.i ' tasflSM-gss^KSS^i- H*IC,N8 fc 8lLf : ^ .... _.^J_ BB 0001 901 | spill l^jSGURfc _ H ^.j-Pfet earntno'i '?#:'. v frfcpreciationf. i-'iZ? ; /;" Amortizatiorvof; i^a*7a-1s.. s.-evta: V"Cv'i Deferred incdm^^wteaftd tiiv^ir m/ -EJ.%3 <';,,? proc^^|(w^^;bfsi^^ 'r'-'7",-`v: *-^Repaym' >ef>i't`"oif*f:i*a. di via;^nce, s.^b^yAfSt;: S&*'_4>?V(WJS'/W!fei SSSfK*#: .; < -,V Dspreciation- andf^depBitiiMfe^^^foi ~*,VE Taxes^xcipsiVb'dfjbix^^tfWrKSm^ . -'/' \ I nterest'expengEKi-'^-^jllpi^^^^^l *_V.- . ,^r-: Payable for the ye ' ' Deferred faxes--ini -;: -Deferred taxes^ Total.......... . : Earnings Before? InterSsfSi^ :. > j " , Less--MinoritYJT^^^S^S^b . 'E' - Consolidated Subs^fllr^^,^ - Net.Earnings (Per # '-. W "V- 7 --i;' '- : :. earninq:retain Balance'At:3and8fy; '*?;; 4v:^Eatning^^^ 'i J J Oldl. - - 7 ftcaassffhd-l'VDBiWednidfKsl^saSr'Ef^Jg E Balance-AtDecerbbeit791{^iiP " .1 _ .. _ **--'*W---- 'vi-l -AA'~T- '!. L `* ` ' 4,'" ilh? ,7' I' " * tS vir $; 143,495,000 m2S9i0OO^*> ' 46,613.000 ?2,867,D00^\J t ^2,867,000.. 'IpimOOaM 6,451,000 ^pdOG^ -27,103,000 94:000^1 -fyvM;fi:t61 dOOO _ _ mO1$iO0O^ V't-r. 463,107,000 .? J , 7J .V ! r - 3 '- ii- m.-1-..fc' . -i ii '>*;'. ..' - f^Oa^OO^ - $ 136,700,000 : : .V- 26,407,000 , i^Sfik'-7S*;?-$ '**1-6---3--,-1--0--7--,-0--0--0- -'- ' j 1 'V /. ', "*1' I I i --*-~^ - v>#sr ' -*; ssg^^-cv- Year Ended - SH^SSf'P/cTvii^y'V'.-7-i .'r December 31, vi967 - . ____ , t- 942,906,000 59$dO0&? > - 1.577,000 "v 11,603,000 < ^^90Wi Jv-? 956,085,000- ^ v 269? ^.` - 65^524;d00:: c ]V:EfCl36,204,000>;';. ^^'46;613,000 :j^j^3T,5S8^^O0O00g^sfg K^'62.935,000^ 13,00C^S K383,00aa .500,000$; ;n,.: ^37,400,0007--^ >,298,( I rn^-??1t44&,000^, 1:4- - 43,49500<n^! mtm? ^%.`J426,1 OlvOOO^^ [ ^^-^43,495,000^ | fe:.^- 26,^,bbosEy COOO^^j > ? $ *442189,000 ' ;;> 'r'* - 'i- ->. ' v - * ^------------------------------- Ppjj j BB 0001 802_2 B-- -- ------ - - ^-\rya 25 ?r. f*2G} ' Plartl And EqiupraenVftwaOa. / ^ Capital And-fletwriWEafnjn^S^^^^^^jigw -- ^i-v^fTcv<Tp*en. <- jr*>ture. ^.-V^'^.-t<* ^. >^ayn*y~'A2GT<AO:- i"^* * D*v*dW>dsV7r->v-. ...v7',w . j -..Y;--.... .. - ' _vJr"iE - Equity '. ...... '^* . . Shares Outstanding--A1 ;"j ` ^Thousands).......... .4? EMPLOYEES . <:,* {^Nujriber OfEmployees -*'ih2C * --*-.*w *' .. - v,'^1:' r -5 v^j-' *- - r ' -- <TTr ^Piyfo^ And Benefits " i: *_Adju*td fw;zfdt^rMocJirBtt *-^j */"! ' - <.*~. '-.*:v*"v>::.*.4*r;`j?"*&* &&9&11187.2 i268.4. 5-%X; 95.9 w108.8.". "' * 2. , \. *S< -- - * .... 08*fe Vi .3. 159.6 ~; ~ - i ^'a2ti('a"'333A'*35,;'V; SSSSrii?Vt' <r --^ . li"**"1 ?':' riq ft a". -f. ;w%ao -*t.: it>'S~*&L+r; .3i3:^.^fl; r- ?- ^^S&f:'iJW6^v442-.yX - dkSVS^NSVff-^v^^S'!?`Y*f w\j.(h - r-:.t.02 !&???.*?.' *'' -.. GLASS GLASS GLASS G LASS GLASS GLASS GLA SS GLASS GLASS GLAS S GLASS GLASS GLASS GLASS GLASS GLASS G LASS GLASS GLASS GLA SS GLASS GLASS GLAS $ GLASS GLASS GLASS GLASS GLASS GLASS G LASS GLASS GLASS GLA SS GLASS GLASS GLAS S GLASS GLASS GLASS CHEMICALS CHEMICAL S CHEMICALS CHEMICA LS CHEMICALS CHEMIC ALS CHEMICALS CHEMI CALSCHEMICALSCHEM ICALS CHEMICALS CHE MICALS CHEMICALS CH EMICALS CHEMICALS C HEMICALS CHEMICALS CHEMICALS CHEMICAL S CHEMICALS CHEMICA LS CHEMICALS CHEMIC COATINGS & RESINS C OATINGS & RESINS COA TINGS & RESINS COATI NGS & RESINS COATING 5 & RESINS COATINGS 6 RESINS COATINGS & R ESINS COATINGS & RES INS COATINGS & RESIN S COATINGS & RESINS C OATINGS & RESINS COA TINGS & RESINS COATI NGS & RESINS COATING FIBER GLASS FIBER GLA SS FIBER GLASS FIBER G LASS FIBER GLASS FIBE R GLASS FIBER GLASS F IBER GLASS FIBER GLA SS FIBER GLASS FIBER G LASS FIBER GLASS FIBE R GLASS FIBER GLASS F IBER GLASS FIBER GLA SS FIBER GLASS FIBER G LASS FIBER GLASS FIBE R GLASS FIBER GLASS F | UB 0001806