PPG focuses its attention on coatings sector

Editor's Note: As a leading coatings and specialty products and services company, PPG Industries recently invested in another key China-based facility in Zhangjiagang of Jiangsu province. Charles E. Bunch, chairman of the board and chief executive officer of PPG Industries, recently was in China to visit the site of the company's new investment. In an interview with China Business Weekly reporter Wang Yu, he talked about his company's short-term and long-term strategies, and his own management style.

Q: As the global economic recession drains profits from the industry, how has PPG been surviving the crisis?

A: PPG has taken a number of actions. We have restructured our businesses starting last year around this time. But also earlier this year we closed some facilities and took some actions to reduce costs, and we also reduced the number of employees.

We have the advantage of serving a number of end-user markets in a number of regions in the world, and that diversity helped us survive the crisis. In some of our markets, like the aerospace markets or marine and coatings markets, they held up very well and helped us maintain profitability. And we had a good business presence in China, where actually the recession was very short-lived.

We started growing again in China late in the first quarter, only three or four months after the downturn. China is helping PPG pull out of the recession, so we never lost money at any time during this recession. Our profits dipped, but our cash has been good and this diversity of businesses and markets and regions helped PPG get through this crisis.

Q: In the short term, what is the next round of investments in China?

A: We have a number of smaller projects going on. Last year we completed a project in Wuhu. We are continuing to invest in our facility in Tianjin. We are making incremental investments, putting in new plant and equipment in existing facilities. All of our facilities in China are growing. Zhangjiagang is our biggest investment right now and is getting our attention.

The Zhangjiagang facility will be one of our largest investments in the world and the leading project for PPG. We will be investing over 25 million dollars in this new facility.

Q: Can you share with us your long-term, say, over the next decade?

A: We are now focused on growing our coatings and optical businesses, and we are the second-leading coatings manufacturer in the world.

We participate in all the coatings businesses for automotive and architecture. Our strategy is to continue to grow our coatings businesses globally, particularly in growing regions and developing regions such as Asia and India, China and East Europe.

Q: After becoming CEO of the company, what do you think is the biggest change you have bought to the company?

A: We have been putting more emphasis on growing our coatings businesses. PPG historically was more diversified, with different businesses, more chemical and glass businesses. In the time that I have been the CEO, we have been growing the coatings businesses, particularly in Asia and China. We have made acquisitions in Europe and China to become more global.

Q: What is most memorable about working with PPG?

A: The most memorable is to live in different parts of the world. As an example, in the 1980s I lived for seven years in France and Italy - a good opportunity to learn about different cultures and do business in different countries.

I have been here over the last 10 years. Probably the most memorable for me was watching and participating in the changes in China. What is going on here is truly historic, and we have been able to participate in a small way with our company. For me, it's been a real learning experience to see how things change and how fast things have changed here in this region.

Q: Could you share your management experience and style of management with us?

A: I'd like to get to know the customers and our employees. I don't like to stay in my office. I like to see for myself and have an opportunity to talk to the people. It's important to me to be able to understand what's going on, to meet with customers, government officials and PPG people going to the plant sites. My management style is to see for myself, to meet the people and gain a better understanding of what we need to do.

Q: What are your hobbies?

A: In my free time, I go hiking and play golf.

Q: Have these hobbies affected your character or personality?

A: No, but it gets me out of my office to think about things. It helps me to find a balance in my life.

You always have to be relaxed and not get too concerned with problems. In a big company like ours, there are always problems, so you have to be able to understand that and not overreact.

Q: What are the characteristics you think any company leader should have?

A: Any leader should be able to develop a vision for the company for the future.

Communicate that effectively to the organization and bring everyone together to realize that vision. That's the key skill you need to be effective.

(China Daily 12/21/2009 page4)