May 21 (Reuters) - PPG Industries ( PPG ) on Tuesday

said it would invest $300 million to boost its manufacturing

capabilities in North America, aimed at meeting the rising

demand for paints and coatings in the automotive sector.

This investment includes the construction of a new

manufacturing facility in Tennessee.

WHY IT'S IMPORTANT

Automakers are selling more cars as people seek new vehicles

for personal use after the pandemic.

This demand is good news for companies such as PPG, which

supplies paint and coatings for the automotive industry,

boosting their profits.

CONTEXT

The proposed 250,000-square-foot facility in Loudon County

will be PPG's first new manufacturing plant to be built in the

country in more than 15 years.

Construction of the facility is expected to be completed in

2026. Once operational, it will produce more than 11 million

gallons of paint and coatings annually.

Tennessee is home to manufacturing and assembly plants of

major automakers such as General Motors ( GM ), Volkswagen

, Ford Motor ( F ), and Nissan Motor ( NSANF ).

MARKET REACTION

Shares in the company were marginally down in morning trade.

KEY QUOTES

"...PPG will leverage this new facility and our other site

investments to maximize quality, improve operational efficiency,

and reduce product complexity within our manufacturing

footprint," said CEO Tim Knavish.

"The strategic location of PPG's new facility also creates a

more efficient and effective supply chain with close proximity

to many automotive manufacturing facilities."