PITTSBURGH - PPG Industries Inc. announced a $2.7 billion agreement in what is being called one of the largest asbestos settlements in U.S. corporate history, involving products made by the company's affiliate business, Pittsburgh Corning. The business, established in 1937, manufactured asbestos-containing pipe insulation from 1962 to 1972 and filed for bankruptcy in 2000.
As a result of the settlement, PPG said it will record an after-tax charge of about $500 million, reflecting primarily the current value of cash contributions over a 21-year period, in addition to 1.4 million shares of PPG stock. Also included in the settlement is the contribution of PPG's shares of Pittsburgh Corning. PPG's insurers have reportedly agreed to pay for the rest of the settlement.