PPG Executive Shakeup: 1,800 Job Losses, North American Business Sold

On November 13, PPG Industries, a leader in the international coatings industry, announced a series of business leadership appointments designed to continue strengthening and advancing the company's growth strategy. On the same day, PPG also announced that, effective January 1, 2025, the group's Industrial Coatings division will undergo a change in leadership.

Tom Maziarz, who currently serves as vice president of Automotive refinish for PPG Americas, will be promoted to vice president of PPG Transportation Solutions effective December 1, 2022. He will be affiliated with Amy Ericson, PPG's senior Vice President of Protection and Marine Coatings. Maziarz will succeed Ed Baiden, who currently leads PPG's transportation solutions business, who has announced plans to pursue career opportunities outside of PPG.

Tom Maziarz has been with PPG since 1993, initially as a sales representative in the Architectural Coatings business unit, where he has held various sales and leadership positions. In 2013, he was promoted to vice president of Stores and distributors. In 2017, Maziarz moved to PPG's Automotive refinish business, responsible for sales and marketing in the United States and Canada, and promoted to vice president of the Americas in 2020.

Rodolfo Ramirez, currently PPG's vice president of Packaging Coatings, will take over as Vice President of PPG's Automotive Refinish Paints Americas, effective January 1, 2025. Ramirez will report to Chancey Hagerty, senior vice president of PPG Automotive Refinish.

Rodolfo Ramirez joined PPG in 2003 as Head of Technical Services for the Automotive OEM business in Mexico. In 2010, he moved to PPG's Packaging Coatings business as Regional Director for Mexico, Central America and the Caribbean. In 2015, he moved to Pittsburgh to join the Industrial Coatings Business Unit, where he was responsible for sales and strategic segments in North America and Mexico, global accounts and business development. Prior to his current role, he served as General Manager of Global Coatings Services at PPG.

Denise Lu, currently General Manager of Industrial Coatings for PPG Asia Pacific, will become Vice President of PPG Packaging Coatings, effective January 1, 2025. Lu will report to Alisha Bellezza, Senior Vice President of Automotive Coatings. Lu's current leadership position will be notified separately by the company.

Denise Lu was appointed to her current position in 2022. Previously, she was a member of PPG's Automotive refinish business leadership team, serving as Global Marketing Director since 2016. Prior to the refinish business, Lu served as PPG's Director of Corporate Strategy and Development for Asia Pacific and Director of Strategic Development for Performance Coatings for Asia Pacific. During his 17 years at PPG, Lu drove high-value growth initiatives, led acquisition integrations, oversaw strategic planning and business development activities, and was responsible for divisional strategy and mergers and acquisitions.

On the same day, PPG also announced the following leadership changes in the Group's Industrial Coatings division effective January 1, 2025: Juliane Hefel, currently Vice President of Specialty Coatings and Materials (SCM), has been appointed Senior Vice President of Industrial Coatings, with additional strategic and operational leadership for the global SCM business. Hefel will report to PPG Chairman and CEO Tim Knavish and will be a member of PPG's Operating committee.

Juliane Hefel joined PPG in September 2022 after holding a number of leadership positions with an expanding range of responsibilities at Henkel, a multinational chemical and consumer goods company. Hefel will succeed Irene Tasi, currently PPG's Senior vice President of Industrial Coatings, who will become senior vice president and chief Transformation Officer. Tasi will continue to report to Knavish and remain a member of the company's Operating Committee.

Xiaobing Nie, currently Vice President of PPG Industrial Coatings, China & Global Consumer Products and President of PPG Asia Pacific, will expand her leadership role in Industrial coatings to cover the entire Asia Pacific region. Ms. Nie will continue to be based in Shanghai and report to Juliane Hefel, Senior Vice President, Industrial Coatings and Supply Chain Management. Ms. Nie joined PPG in 2021 after serving in various commercial and marketing roles at DuPont, including Asia Pacific Head of the company's Shelter division.

PPG Corporation, founded in 1883 and headquartered in Pittsburgh, USA, is a global leader in the coatings industry. The company is divided into two divisions of high performance coatings and industrial coatings, and its products cover a variety of fields. According to the "2024 Top 10 Global Coatings Manufacturers List," PPG ranked second with $18.246 billion in sales revenue. Despite PPG's continued acquisitions, sales have grown at a compound annual rate of just 2.7% over the past decade. In the first three quarters of this year, the company's net sales were 13.680 billion US dollars, down 1.55% year-on-year, but pre-tax profit and net profit attributable to the parent company increased by 18.38% and 18.31%, respectively.

To address the challenges, PPG plans to sell its North American architectural coatings business, cut 1,800 jobs and close several plants. An agreement was reached with U.S. Industrial Partners to sell the architectural coatings business in the United States and Canada for $550 million, with the transaction expected to close in late 2024 or early 2025. Li Mingyue, an observer of the painting industry, believes that the move is aimed at optimizing the investment portfolio, improving the efficiency of funds, and focusing resources on areas with growth potential. PPG also plans to reduce costs through facility closures and layoffs, which are expected to result in annual pretax cost savings of about $175 million. The company expects the cost reduction program to affect approximately 1,800 positions, primarily in Europe and the United States. Tim Knavish, PPG's chairman and CEO, said the measures are to reduce the overall cost structure and resize the company, and will not affect the company's investment and organic growth focus.