Warsaw 13.07.2011

Warsaw, July 13, 2011
•
Pittsburgh Glass Works LLC - PGW
• Company Background
•
Pittsburgh Glass Works (Poland) Sp. Z o.o.
• European Sales Plan and Site Selection
• PGW Poland Production Plan and Investment
• Concept Design and Current Progress
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PGW at a Glance
Founded as PPG in 1883
 Pioneer in the automotive glazing market
 North American Headquarters
Ownership:
 60% Kohlberg & Company LLC
 40% PPG Industries
Three Divisions:
 OEM (Original Equipment Manufacturer)
 ARG ( Automotive Replacement Glass)
 Insurance & Services
Total Employment – 4,280
 Salaried
 Hourly
– 1,207
– 3,073
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PGW Glazing Capabilities
Windshield BOM
•Glass
•AIP Molding
•Lace Molding
•Locator Pins
•Foam Dams
Front & Rear Door BOM
•Glass
•Plastic Lift plates
PGW Responsibilities
•Full system integration at the OEM
•Fulltime PGW staff on-site at the OEM
•Responsible for all glazing systems and
their interface to surrounding commodities
Backlite BOM
Qtr/Window BOM
•Glass
•PVC encapsulation
•Locator Pins
•3M tape
•Glass
•Foam Dams
•Locator Pins
•Wiper Grommet
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Description
Revenue Split
Products
OEM Division
ARG Division
I&S Division
Manufactures, fabricates and
delivers glass products and
solutions to automotive OEMs
directly or through third party
suppliers
Manufactures and distributes
replacement auto glass and
related sundries to the glass
replacement aftermarket
Provides a suite of software and
services that manages (1) the
auto glass insurance claim
process and (2) inventory and
work flow for glass retailers
50%
45%
5%
Laminated windshields,
tempered and laminated
sidelites and backlites and
plain, flat glass
Laminated windshields,
tempered and laminated
sidelites and backlites
LYNX Services,
GTS Services, GLAXIS
and Prostars and Select
managed networks
Key Customers
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OEM
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Manufacturing facilities
Facility size (sq. ft.)
Products
Employment
Meadville, PA
635,000
Flat Glass
290
Creighton, PA
310,000
Windshields
246
Crestline, OH
540,000
Tipton, PA
380,000
Evansville, IN
550,000
Berea, KY
Tempered – sides
Tempered – backs
Tempered – sides
Tempered – backs
Laminated – sides
Windshields
Tempered - sides
453
300,000
Windshields
267
O’Fallon, MO
10,000
JIT Assembly
59
Talladega, AL
60,000
JIT Assembly
27
Mid-Ohio, OH
99,000
JIT Assembly
117
Alliston, ON
88,000
JIT Assembly
151
Current total
3,064,000
Windshields
Tempered – sides
Tempered – backs
Laminated – sides
518
444
2,572
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PGW will add 555k SF of manufacturing floor space in Wroclaw and Elkin,
and capacity for 2.4m windshields, 2.7m tempered sidelites and 0.7m
tempered backlites with production beginning in 2012.
Manufacturing
facilities
Facility size (sq.
ft.)
Products
Employment
Wroclaw, Poland
(online 2012)
175,000
Windshields
180
Elkin, NC
(Online 2012)
380,000
Windshields
Tempered – sides
Tempered – backs
258
(phased in)
Evart, MI
210,000
Windshields
Tempered – sides
47
3,829,000
Windshields
Tempered – sides
Tempered – backs
Laminated – sides
3,057
End State Total
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European Site Selection
• PGW engaged Deloitte to assist in the site selection process.
• The team visited and evaluated over 100 potential production sites, and interviewed officials in
over 30 operating companies, in four (4) Central Eastern European (CEE) countries as well as
sites in the Southeast United States.
• Based on preliminary analysis, PGW chose three possible localizations: Poland (Sroda Slaska
municipality) and USA or Canada.
• Poland was chosen mainly because of the possibility to obtain grants. Lack of external cofinancing from EU Funds would result in localization of an investment in North America.
• Poland was found to have the best combination of operating costs, business
conditions, and friendly government. Poland scored highest in comparison of
operating conditions in 5 categories: Human Resources, Physical
Infrastructure, Business Climate, General Risk and Sourcing Supply Chain.
• The Środa Śląska site near Wrocław, Poland was found to have the best
overall fundamentals for a PGW production site.
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Preferred Site in Central Eastern Europe
Berlin
Bremen
Warsaw
Prague
Rastatt
Sindelfingen
Vienna
Bratislava
Budapest
Preferred site (Środa Śląska)
Distance from Wrocław:
Sindelfingen 780 km
Rastatt
832 km
Bremen
603 km
Kecskemet
695 km
Kecskemet
Country capital
Main roads/highways
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Production Plan and Investment
•
PGW Poland will have 1.2 million of installed Press-Bent Windshield capacity by Q32012, which can be used competitively for both full-surface-control windshield applications
and more simple parts. Press-Bent applications will consume 72% of capacity in 2016
according to the existing sales plan.
•
Although the plant will start by making only laminated windshield products, laminated
back windows and laminated sunroofs can also be made at the plant.
•
The Poland facility and the production equipment will cost PLN 244,453,843 of which PLN
204,494,640 is eligible for co-financing through the EU Grant program. This represents a
co-financing level of 30% of the eligible spending. PGW Poland also received a permit to
cooperate within SSE.
•
The project defined in the EU Grant started April 28, 2010, is finished December 25, 2012
and will result in 151 new jobs.
•
PGW will create a new R&D space in the facility and work with local institutions whenever
possible on development programs
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•
The Poland facility is considered as a gate to other European markets,
Positive impact of the project:
• The high innovativenes of the facility causes that the project is environmentaly
friendly,
• Positive impact on the region:
• Creation of 151 new jobs
• Development and exchange programmes for engineers
• Establisment of R&D activities and cooperation with universities
• Partnership with local SME’s
• Global leader and innovation in the region – diffusion of innovation
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Current Progress
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Current Progress
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• PGW wants to thank the following organizations for their assistance
in our excellent start in Poland:
• The Ministry of Economy for the administration, consideration
and approval of our application for co-financing
• The Polish Information and Foreign Investment Agency (PAIiIZ)
for their guidance and support including hosting today’s event
• Deloitte Poland for their continuous support and advice
• Lower Silesia Economic Cooperation Agency (DAWG) for their
help with site visits and hosting meetings
• Gmina Środa Śląska and Burmistrz Bogusław Krasucki for their
help in making things happen
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Thank you!
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