PPG Lake (PPG) Charles Chlor-Alkali Complex Experiences Unplanned Outage
Tweet
Share
E-mailGet Alerts PPG Hot Sheet
Price: $114.11 -0.54%
Financial Fact:
Less: net income attributable to noncontrolling interests: -5M
Today's EPS Names:
SVBT, ZEO, OTLK, More
Financial Fact:
Less: net income attributable to noncontrolling interests: -5M
Today's EPS Names:
SVBT, ZEO, OTLK, More
Join SI Premium – FREE
PPG Industries (NYSE: PPG) announced that its chlor-alkali complex in Lake Charles, La., experienced a production outage stemming from a major generator transformer failure, which resulted in an electrical disruption and subsequent shutdown of the entire plant. The incident occurred Nov. 28 and did not result in any chemicals releases or injuries to plant personnel but did lead to a multiday production stoppage.
“Plant personnel reacted quickly and appropriately,” said Michael H. McGarry, PPG executive vice president. “Due to their efforts, we were able to avert a longer plant outage.”
The company indicated that following an orderly start-up, the plant resumed partial operations Nov. 30. However, power generation continues to be impacted by damaged electrical equipment.
“Due to the electrical damage, we are still not generating sufficient power internally, so we have begun to purchase power externally. We have commenced repairs to our electrical system and expect completion to take 4 to 6 weeks,” McGarry said. “We are now running at operating rates sufficient to meet current customer demand, and we expect to be able to continue to meet demand throughout the repair period.”
McGarry added that the lost sales volume and expense associated with the plant stoppage, transitory external power purchases and equipment repairs will likely impact PPG’s fourth quarter Commodity Chemical segment earnings by $4 million to $8 million.
“Plant personnel reacted quickly and appropriately,” said Michael H. McGarry, PPG executive vice president. “Due to their efforts, we were able to avert a longer plant outage.”
The company indicated that following an orderly start-up, the plant resumed partial operations Nov. 30. However, power generation continues to be impacted by damaged electrical equipment.
“Due to the electrical damage, we are still not generating sufficient power internally, so we have begun to purchase power externally. We have commenced repairs to our electrical system and expect completion to take 4 to 6 weeks,” McGarry said. “We are now running at operating rates sufficient to meet current customer demand, and we expect to be able to continue to meet demand throughout the repair period.”
McGarry added that the lost sales volume and expense associated with the plant stoppage, transitory external power purchases and equipment repairs will likely impact PPG’s fourth quarter Commodity Chemical segment earnings by $4 million to $8 million.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Optimum Communications gets NYSE non-compliance notice over stock price
- Algorhythm Holdings (RIME) Tops Q2 EPS by 54c
Create E-mail Alert Related Categories
Corporate News, GuidanceRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
