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Georgia Gulf is a major producer of PVC. That is a commodity plastic used especially in building materials and in automobiles. They should do OK as these industries recover.

But note that commodity chemicals tend to be cyclical. When prices are down earnings can be hard to come by and only the efficient low cost producers can survive. When prices are up (and key products are in short supply) these plants are virtually a license to print money.

In acquiring PPG's chloralkali business Georgia Gulf integrates backward toward its suppliers. That secures a source of supply and takes out a layer of profits. But it also means adding new businesses: caustic soda and chlorinated solvents.

This is not a growth investment; its a cyclical. Remember to buy low and sell high.
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