BWF
Accredited Timber Windows Link with BSI Kitemark
The
British Woodworking Federation has announced that its Timber Window Accreditation
Scheme will henceforth be run in partnership with the BSI Kitemark Scheme.
This means that all factory glazed timber windows manufactured in accordance
with the Scheme will now carry the prestigious BSI Kitemark in addition
to the tamper-evident BWF label.
‘This is a major step forward both for consumers and for Scheme members,’
said BWF Director, Richard Lambert. ‘Although the BWF Timber Window
Accreditation Scheme is already a widely recognised quality mark in the
industry and the trade markets, our members felt that it was perhaps not
so widely understood by householders.
Left
to right: Richard Lambert, Director of BWF, Stephen Wright, Chairman of
the Window Scheme and Managing Director of George Barnsdale and Sons and
Chris Lewis, Business Sector Manager to the BSI
‘As timber windows start to regain market share in the domestic replacement
market, it is important that end users can be absolutely confident that
they are getting windows that will look good and work well for years.
The famous BS1 Kitemark will give them this confidence at a glance.’
The BSI Kitemark — which originated in 1903 — is the most well-known
and respected product quality mark in the world. Regular UK consumer surveys
reveal that 80% of the British public recognise the Kitemark as a symbol
of quality and safety. What’s more, 60% of them are prepared to pay
a price premium for products that bear the Kitemark.
The Kitemark indicates to the consumer that the product is regularly tested
by BSI against the requirements of its related standards, and that the
manufacturer’s quality system is assessed at least twice a year to
ensure continued quality production.
In the case of BWF accredited timber windows, consumers are guaranteed
that all the timber used in the windows will have a minimum life of 30
years, and that the factory fitted glazing and weathersealing will last
for at least 10 years. The overall performance of the windows is guaranteed
to equal or exceed all relevant NHBC and British Standards. In addition,
fully factory finished and factory glazed windows should not need repainting
for five years if stained, or eight years if painted.
‘The benefits to Scheme members are considerable,’ said Richard
Lambert. ‘They have been pressing us to increase the rigour and independence
of the Scheme’s audit and verification processes to boost its reputation
in the market. The BSI seal of approval will give enhanced credibility
to their products by virtue of its stringent test requirements, as well
as providing them with new opportunities for product promotion.
‘Timber has benefited from a massive increase in consumer confidence
in recent years. The huge improvements in design, manufacture and performance
mean that timber is now widely recognised as the most fashionable, versatile
and environmentally friendly choice for the 21st century householder.
Combining our Timber Window Accreditation Scheme with the BSI Kitemark
sets the seal on this transformation.’
Tel: 0870 458 6939
Email: mailto:windows@bwf.org.uk
Web: http://www.bwf.org.uk
Deceuninck
Launches New System
Deceuninck
has introduced a new PVCu profile system to offer fabricators an even
greater choice of window design.
The new 70mm window and door suite, known as 3000 Series, is a technically
advanced, high performing system and demonstrates the considerable research
and design undertaken by the company.
The fabricator-friendly system has been designed with a host of benefits,
including a pre-inserted weatherseal which is far less intrusive thanks
to the improved position and new ‘invisible’ grey colour, giving
more glass appearance. Furthermore, the design of the system allows for
personalisation of the window style with a choice of three glazing bead
options; standard, contemporary and decorative.
In a further move, the company has decided to make the new suite available
in a warmer white, RAL Reference 9016 (Deceuninck colour 03). Also known
as Traffic White. The new system gave Deceuninck the opportunity to select
a white colour, warm in appearance, which matches accessories such as
handles, door hinges and letterboxes etc.
The 3000 Series is available in a full choice of finishes including both
Golden Oak and Rosewood foils. The new system embraces Deceuninck’s
policy to offer multi-product solutions.
Contact: Martin Vowden
Tel: 01249 816969
Email: mailto:martin.vowden@deceuninck.com
New
Kitemark for PVCu Window Installation
BSI
Product Services has launched a new Kitemark scheme designed to save both
time and money relating to the survey and installation process for PVCu
windows.
Rotherham Metropolitan Borough Council, Radway Doors and Windows and Graham
Holmes Astraseal were each awarded with their licences by Dr Eli Kienwald
of the London Housing Consortium together with Chris Lewis, certification
manager for construction products at BSI Product Services.
The scheme was launched with three clients at the new event for the construction
industry, Public Sector Construction Conference on the 25 and 26 of May.
The new Kitemark licensees now fulfil the requirements of the Survey and
Installation of PVCu Replacement Windows Kitemark scheme, which is based
on the British Plastic Federation specification BPF W362/1.
Chris Lewis comments: 'It is all very well having great quality products,
backed by a quality mark scheme, but performance can be let down by poor
installation. This new scheme addresses this issue. While, in the past,
the Kitemark primarily covered the performance of the product, this new
scheme means that the installers, specifiers and homeowners are assured
that both the product and the installation are of a high quality.
'Ultimately, this means avoiding costly mistakes, saving time on site
and providing the customer with a quality product, service and peace of
mind.'
Andrew McKeown, Managing Director of Astraseal says: 'Our surveying and
installation service is undertaken to high standards but it is always
gratifying to receive an independent endorsement of that and we will be
promoting our new Kitemark with a huge degree of pride.'
This new Service Kitemark demonstrates that the company's installation
process has been assessed by BSI and meets the nationally accepted code
of practise. The assessment includes a number of site installations, the
surveyor's responsibilities, measurement, fixing methods and typical installation
details. The manufacturer's quality system is assessed, on a regular basis,
to ensure continued compliance. BSI provides a cost-effective certification
service to demonstrate that products and services are legal and fit for
sale in the market place.
The usual route to achieving a Product Kitemark is by a combination of
stringent and regular independent product testing and quality systems
assessment - all to recognised British, European or international safety
and quality standards. BSI runs Kitemark schemes for hundreds of products
from pipes and valves to cricket balls.
Web: http://www.bsi-global.com/kitemark
Four
Months to go for glasstec 2004: Positive Mood amongst Exhibitors
Four
months to go before the international glass trade fair glasstec 2004 opens
its doors in Düsseldorf. And once again it is expecting around 54,000
experts from all over the world to visit.
The glass industry is said to be one of the most innovative industries
in the world, but its potential is far from being exhausted. For the first
time companies from the laser technology and thin special glass sectors
will be participating. In addition to new processes for separating, marking,
cutting and melting glass, the current laser generation offers fresh potential,
particularly for the sheet and hollow glass industry with high profitability
and great flexibility.
The sheet display industry is in a state of growth with experts forecasting
an annual growth of 20%. Reason enough, say the organisers, to demonstrate
the full spectrum of current possible applications for refined special
glass at glasstec 2004.
Accompanied by a symposium with specialist talks by well-known speakers,
the special show ‘glass technology live’ will again be one of
the highlights of this year’s exhibition. The focus will be on visions
and also actual glass applications and include futuristic glass designs
by renowned international architects and glass artists.
Over 800 exhibitors from 39 countries have already confirmed their attendance
- this number is higher than the figure registered this time two years
ago. glasstec will again be very international this year with the largest
contingent of exhibitors from Italy, followed by companies from Belgium
and the USA. There have been significant increases in the amount of space
reserved by exhibitors from Turkey, Switzerland and Asia. Companies from
Australia and New Zealand will also be exhibiting for the first time to
present themselves and their innovations in Düsseldorf.
glasstec 2004 is also presenting itself with an extended Internet service.
A large number of services will be available to visitors and exhibitors
online. Exhibitors can, for example, order all the services of the Messe
Düsseldorf and its affiliated franchise partners online with the
Online Order System (OOS) via the Internet.
In addition, the glasstec websites contain a constantly updated and extensive
exhibitor and product database with an easy-to-operate search engine.
glasstec 2004 opens daily from 9.00am to 6.00pm, from 9 to 13 November
2004. Day tickets cost 26.00 Euro and the two-day ticket 42.00 Euro. Catalogues
(17.00 Euro) and admission tickets can be ordered from autumn onwards
in the glasstec online shop via 'Tickets / Catalogues'.
Continually updated information is also available on the website at http://www.glasstec-online.com
IMI
Trading Update Warns of Lower Profits in UK Building Products Sector
IMI
plc - the parent company of Polypipe and Premier Profiles - has issued
a trading update in advance of its interim results announcement: 'The
steady improvement in general conditions is continuing and we expect to
be able to report overall like for like volumes 5% higher than the first
half of 2003. Order intake is running around 7-8% ahead of this time last
year.
'In Severe Service the growth in order intake has slowed marginally to
around 10% reflecting our decision to focus, for a period, on the consolidation
of the operational infrastructure after three years of very strong growth.
Sales in the first half will be lower than last year as a result of scheduled
shipment timing, although margins will show some improvement. Our Fluid
Power business continues to improve, with good growth in both the US and
Asian markets, and an accelerating contribution from new products in our
targeted end market segments.
'The improvement in Europe however, is more subdued. In Indoor Climate,
German thermostatic radiator valve sales continue to show a small improvement,
reversing a long downward trend, and balancing valve sales in Eastern
Europe, albeit at lower margins, remain strong. Volumes will be higher
than 2003, although margins are being impacted by raw material costs and
exchange rates.
'Despite the negative impact of raw material costs on Beverage Dispense
and Merchandising Systems, we have made progress in both our Retail Dispense
businesses. Volumes in Beverage Dispense have steadied with some moderate
improvement in the US and the Far East. Operational efficiencies continue
to improve at our Mexican facility. Merchandising Systems is enjoying
another good period with growth coming from our Cannon business, continued
strong performance at DCI and a pleasing contribution from a full six
months at Artform.
'UK volumes in the Building Products business of Polypipe remain reasonably
healthy. Raw material price increases however, which show little signs
of abating, continue to put pressure on margins and profit will be lower
than last year.
'Rationalisation costs for the first half and for the full year are expected
to be at similar levels to last year at around £2.5m and £6m
respectively.
'As normal for the first half of the year there will be an increase in
working capital resulting in a small increase in gearing. Cash generation
remains strong.
'Movements in average exchange rates will reduce reported profits for
the half year by around £3m and the net impact of raw material cost
increases is likely to be around £4m. Despite this, profit for the
six months is expected to be around 10% higher than last year.
'We have in a separate release today announced the acquisition of Fluid
Automation Systems, a high technology Swiss company specialising in miniature
solenoid valves which will enhance our Fluid Power capability in medical
and semiconductor market segments.
'In respect of the ongoing European Commission enquiries, a decision on
the copper tube case is expected shortly, but a decision on the copper
fittings case is unlikely to be made before the second half of 2005. It
is not possible to give any reliable estimate of the likely level of fines
in either case.'
The interim results announcement for the six months ending 30th June 2004
will be published on 6th September 2004.
Kömmerling,
the new Name for Stag, Signals a Cohesive Presence Across its Markets
Stag
Limited, a supplier of adhesives and sealants to the glass and glazing
industry, announced on June 30th its name change to Kömmerling UK
Limited. The new name brings the company in line with its European partners
in France and Germany and strengthens the organisation's presence across
the pan-European market.
Commenting on the change, Lee Foulkes, Commercial Manager at Kömmerling
UK said; 'The new name will already be familiar to our customers as many
of our products already bear this branding. Bringing the company name
in line will provide a consistent presence that reflects the quality and
reliability of our products and organisation.'
Kommerling (formerly Stag Limited) is a subsidiary of ADCO Europe Holdings
whose ultimate parent is ADCO Global Inc. Members of the group have over
100 years experience of the development of adhesives and sealants. The
company offers a wide range of established products for use in a range
of markets including automotive, glazing, marine and building and construction.
As part of ADCO Global, the company has access to extensive research and
development facilities that continue to introduce innovative products
for an ever more demanding and increasingly diverse customer base.
The company has been awarded ISO 9001 certification and is a long standing
member of the BASA (British Adhesive & Sealants Association).
Contact: Lee Foulkes
Tel: 01895 465605
Email: mailto:lee.foulkes@adcostag.co.uk
Building
Users Face Prosecution if Doors do not Comply with Legislation
Owners,
occupiers and managers of industrial and commercial buildings face prosecution
if doors and shutters do not meet the latest legislation, warns the Door
and Hardware Federation (DHF).
The Federation, which encompasses the Door & Shutter Manufacturers’
Association, is concerned that a large number of buildings have doors
and shutters that either do not have CE marks or have not undergone risk
assessments. And often it is not until someone is injured that the door’s
health and safety performance shortfall is discovered.
To ensure compliance with the latest legislation, the door installer should
give the building end user operating and maintenance instructions and
a Declaration of Conformity if it is a powered door. And to save the user
having to make a risk assessment, the door or shutter should be CE marked.
Said DHF technical officer Ray Nowell: 'We’re horrified at the number
of installed doors and shutters out there which have no certification
at all or have not undergone any risk assessment to test health and safety
performance. It is the duty of local authority enforcement officers and
trading standards officers to police these regulations.
'But all too often, it is only when an accident involving personal injury
happens that enforcement officers discover that the door or shutter does
not comply with the legislation. It is at that point the building owner,
occupier, or premises and facilities manager realises for the first time
they are breaking the law and face prosecution.'
The relevant legislation is the Provision and Use of Work Equipment Regulations
which state that all work equipment - including doors and shutters - installed
since January 1st, 1993 must comply with all relevant essential health
and safety requirements relating to its design and construction. In the
case of doors, these requirements are mainly contained in the Machinery
Directive and the Construction Products Directive.
Ray Nowell continued: 'This is a serious matter - according to the latest
figures available, there were 26 accidents involving doors and shutters
where injuries were caused during the three year period surveyed.
'Our advice to building occupiers, owners and managers is very clear -
ensure you have adequate operating and maintenance instructions for all
your installed doors and shutters, a Declaration of Conformity if they
are powered and ensure they are maintained regularly. If there is no CE
mark on the door, you are legally obliged to carry out a risk assessment
on the design and construction of the product to ensure it meets the essential
requirements.
'If you are having new doors fitted, ensure the door company will supply
the correct documentation and is prepared to CE mark the product. A CE
mark relieves you of the burden of carrying out a risk assessment on the
door’s design and construction.
'If the door company is unable to provide the correct documentation or
cannot CE mark the product, then it is vital to find a reputable supplier
that is prepared to do that If you have existing doors you must include
them in your risk assessments related to the workplace health and safety
regulations.'
For more information on the responsibilities of building owners, occupiers
and managers contact the DHF Secretariat, 42 Heath Street, Tamworth, Staffs
B79 7JH.
Tel: 01827 52337.
Email: mailto:info@dhfonline.org.uk
Web: http://www.dhfonline.org.uk
Whitehall
to Breathe New Life into Ailing Quality Mark
Chancellor
Gordon Brown is set to give the go-ahead for an overhaul of the Quality
Mark, its anti-cowboy builder initiative.
The move comes as it has emerged that the government has called in an
external consultant to address industry concerns over the scheme, which
was introduced in June 2001, and to review its future.
A senior Whitehall source said last week that proposals for a streamlined
version of the scheme were with Treasury officials as part of the government's
spending review.
The source said that changes would include alterations to the six-year
warranty scheme, which contractors are obliged to take up under the Quality
Mark. He said: 'We have sent proposals to the Treasury for a reduction
in the length of time that the contractors have to provide guarantees
(warranties).'
Contractors object to the idea of a warranty because they already belong
to warranty schemes through trade bodies. The source said he expected
that the length of the warranty would be reduced from six to three years.
The Treasury will also reassess how the scheme is to be paid for: contractors
are currently expected to pay a percentage of annual turnover to become
eligible to join the Quality Mark.
The Whitehall source noted that the government aimed to bring in changes
in the Quality Mark, rather than drop it, as it was a Labour party election
manifesto commitment.
The source said this was why Brown had taken such an interest in the scheme.
He said: 'The Treasury is keen to sort out Quality Mark within the spending
review. Nigel Griffiths (the construction minister) has proposed a model
for a way forward and it looks like this will be implemented.'
The DTI has appointed an independent consultant, Dan Bernard, to address
concerns over the project.
A DTI spokesperson said: 'The DTI has brought in a business consultant
to focus on the future of QM. Dan Bernard has extensive experience in
the retail sector, at board level, in strategy formulation and in management
of major business change.'
Bernard has worked across the retail sector and was also formerly managing
director at B&Q Supercentres.
The DTI spokesperson said that the options for the scheme are currently
being developed and are being discussed with the industry.
The spokesperson said: 'The options centre around aligning industry schemes
more closely with Quality Mark objectives in order to focus on delivering
consumer protection-based outcomes.'
The spokesperson added that the aim of the review was to boost take-up
of the scheme by working with the more reputable trade bodies that are
committed to the agenda.
Shrewsbury
Firm Meets Minister at Downing Street
Two
directors of a Shrewsbury based glass firm met the Pensions Minster Malcolm
Wicks at a Downing Street reception on 22nd June. The event was arranged
to celebrate 100 companies in the UK having become Employer Champions
for the Government’s Age Positive Campaign.
Sales director Tony Randall and his father, managing director David Randall,
of Heritage Glass were congratulated by the Minster for spearheading a
campaign in the West Midlands which aims to raise awareness of age diversity
issues and challenge negative age stereotypes.
Left
to right: Tony Randall, sales director of Heritage Glass, Malcolm Wicks,
Minister for Pensions and David Randall, managing director of Heritage
Glass
Malcolm Wicks commented:
'It is clear that employers and individuals are challenging ageist stereotypes
and showing that it is ability not age that counts in the workplace. Many
people over 50 want to work and are prevented from doing so by ageism.
The Government is committed to working with employers to provide opportunities
to those older individuals who want to work, for as long as they are able
to do so. This is not about raising state pension age or making people
work until they drop, rather it is about removing barriers and age discrimination
and offering individual choice.'
Tony Randall said:
'We recruit staff using the guidelines set out in the Age Positive Code
of Practice. When we advertised for some vacancies, we went for the best
candidates based on the necessary abilities for the job and a positive
attitude to work. They all just happened to be aged over 50.'
To help encourage companies employ good age practices, the Department
for Work and Pensions has a set of guidelines that can be easily followed.
To order a copy of the voluntary code of Practice, Age Diversity at Work
– A practical guide for business, call 08457 330 360 and quote Age4
or for more information about Age Positive please visit http://www.agepositive.gov.uk.
Cervoglass
and New Dawn – Partnering for Success
Cervoglass,
the conservatory roof glass from independent specialist glass processor
James Price Tuff X ‘is already proving a great success in the market’
says the company.
A strategic partnership has been formed with conservatory roof systems
company – Newdawn & Sun Ltd which is now distributing the product
through over 250 fabricators and trade outlets.
Colin
Price of James Price Tuff X with Alan Cockayne of Newdawn
Cervoglass™ has a special coating contained within the dual sealed
roof units that reflects up to three times the amount of solar heat compared
with conventional glass units for summer comfort whilst reducing heat
loss in colder periods. A special ‘easy-clean’ coating is applied
to Cervoglass™ units that prevents rain and water from forming droplets
so that when it rains the water spreads evenly over the surface of the
glass and washes any dirt away leaving a spot free finish.
There are three Cervoglass™ products in the range - Cervo™,
Cervo Bright™ and Cervo Sol Bright™. All help to reduce harmful
CO2 emissions and provide good U-values whether air or Argon filled with
solar factors and visible light transmissions. Cervo™ consists of
dual sealed 4mm clear toughened glass; Cervo Bright™ Argon filled
4mm clear toughened and 4mm Low E toughened; Cervo Sol Bright™ argon
filled solar controlled 4mm blue tinted toughened and Low E 4mm toughened.
All Cervoglass™ toughened glass units from Tuff X are dual sealed
on the latest robotic Lisec system, are Kitemarked BS 5713 and can be
heat soak tested to DIN 50049-2-1.
Alan Cockayne of Newdawn commented ‘We are delighted to be involved
in the distribution of Cervoglass, our roof system has always been ideal
for glass roofs as it features aluminium end caps as standard and with
the current increase in demand for quality conservatories the combination
of Newdawn Newera and James Price Cervoglass should prove a winner.’
Tel: 0151 523 7070
Email: mailto:tuffx@jprice-group.co.uk
Security
Glazing makes all the Difference - AAGMA Co-Sponsors Car Security Awards
Advancements
in glazing technology are helping vehicle manufacturers to get 30 times
tougher on car crime. The increasingly important role of glazing in vehicle
security has been highlighted by the Advanced Automotive Glazing Manufacturer's
Association (AAGMA), co-sponsor of the first ever British Insurance Car
Security Awards.
AAGMA was formed in 1998 by the leading companies involved in the development
and manufacturing of laminated glazing in Europe. Its main purpose is
to look at the evolving role of automotive glazing with specific focus
on laminated side glazing and emphasis on carrying out research into critical
areas of current safety and security concerns in all vehicles.
Laminated glazing comprises two thin layers of glass bonded around a polyvinylbutyral
(PVB) interlayer which makes it almost 30 times more intruder resistant
than conventional toughened glass. It is strong enough to withstand a
vigorous attack from a heavy or sharp weapon, acting as an effective deterrent
against the opportunist thief.
All vehicles have laminated windshields but it wasn't until 1994 that
laminated side glazing began to appear on luxury marques. Since then,
the growing focus on safety and security has led to a significant increase
in the use of laminated side glazing and it is now being adopted on popular
family saloons. It is already fitted into over one million cars in Europe
and will be available on 15 new models by 2006.
Chris Hanley, spokesperson for AAGMA in the UK, comments: 'We are delighted
to co-sponsor this year's awards which recognise the critical role that
laminated glazing plays in car security. According to vehicle crime specialists,
just 10 seconds is enough to deter most opportunistic thieves. Statistics
also show that in more than 50 per cent of criminal attacks on vehicles,
a thief's route is through the side window.
'Furthermore, it has been shown that laminated glass can resist an aggressive
attack for 20-30 seconds compared to toughened glass which would resist
a similar attack for only 1-2 seconds. Even when it is broken, laminated
glass particles still adhere to the PVB interlayer and thus create an
extra barrier for any would be thief. It also increases protection from
potential car jackers by providing security for all those inside the vehicle.'
For the UK market, there is also an extra incentive for vehicle manufacturers
to introduce laminated glazing as it can have a significant effect on
the New Vehicle Security Ratings published by the insurance industry at
http://www.thatcham.org.
In summer 2001, the New Vehicle Security Ratings Scheme (NVSR) was launched
in the UK, awarding all new vehicles up to five stars to show the consumer
how secure a car actually is. The difference between being awarded four
stars or the top mark of five stars in the theft from vehicles category,
is laminated side glazing.
Six
of the Best for Corby Windows Group
After
changing to Stuga automatic sawing centres four years ago Corby Windows
Group is so pleased with the machine that the company has purchased a
total of six of them over the subsequent years with the most recent just
having been installed straight from Glassex.
Stuga has been pleased to benefit from the success of Corby over these
years and to help the company build on it by giving first class back-up
on an ongoing basis.
The Autocut saw centre makes cutting easy by automatically handling complete
window batches with the minimum of skill but with greatly improved consistency
and accuracy.
Tel: 0800 169 5444
Web: http://www.stuga.co.uk
Quality
Message Takes Hold in Ireland
One
of Ireland’s windowmakers believes that the quality message is hitting
home in the Irish market. ‘The decision, by County Tyrone-based fabricator
Malplas, to use SFS stainless steel fastener products right from the start
for all exposed fastener applications, reflects the growing move towards
quality specification in window components in the province.’ says
the company.
Malplas
was established in 2000 by high-profile window industry figure Gerry Mallon.
The company now manufactures windows and doors for the trade and commercial
markets across Ireland, using Cego Legend 70 system. Fasteners, along
with other ancillary components, are provided under a supply chain management
arrangement, by international fastener and hinge manufacturer SFS intec.
‘For a long time,’ says Gerry, ‘sourcing components has
been a price-driven process and inevitably this has occasionally led to
compromises when it comes to quality. I believe there have been a number
of windowmakers in Ireland who have experienced significant problems with
carbon steel fasteners. Increasingly, however, the Irish market is becoming
more aware and more discerning. At Malplas, we are building our success
on the quality rather than a price-only platform.’
Interestingly, argues SFS intec’s divisional director Mike Mortell,
price and quality need not be mutually exclusive. ‘The cost-savings
from the efficiencies which our supply chain management service offers
more than outweigh the marginal cost-impact of opting for high performance
austenitic fasteners in place of the lower grade carbon steel or martensitic
alternatives, as Malpas has already discovered. The message is one which
is increasingly hitting home in both the UK and Irish markets.’
Malplas has also now opted for SFS’ new and more attractive Estetic
2Di door hinge in place of the widely used flag hinge – another move
which is gaining momentum in Ireland.
Tel:
01904 610077
Alcoa
Increases Stake in Halco
Alcoa
announced on June 28th that its Alcoa World Alumina affiliate - a global
alliance between Alcoa (60%) and Alumina Limited of Australia (40%) -
has increased its ownership stake in Halco (Mining) Inc., from 43 to 45
percent, as part of Comalco's sale of its interests in the project. Alcan
Inc., the other participant in Halco, also increased its stake through
two subsidiaries from 43 to 45 percent. Alcoa and Alcan each paid Comalco
$5,875,000.
Halco is a 51 percent owner of Compagnie des Bauxites de Guinee (CBG)
which mines bauxite in the Boke region of Guinea for export. The Government
of the Republic of Guinea holds the remaining 49 percent of CBG. CBG has
exclusive rights through 2038 to bauxite reserves and resources in a 10,000
square mile area in the northwestern part of the country. Alcoa World
Alumina, Alcan and other Halco shareholders acquire CBG bauxite for use
in their individual businesses.
Last month Alcoa and Alcan announced the signing of a memorandum of understanding
(MOU) on developing jointly a 1.5 million metric ton per year (mtpy) alumina
refinery in the Republic of Guinea. Studies are already underway on the
project where alumina production is expected by early 2008 with a facility
capable of capacity expansion beyond 1.5 million mtpy.
Alcoa is the world's leading producer and operator of primary aluminium,
fabricated aluminium and alumina facilities, and is active in all major
aspects of the industry. Alcoa serves the aerospace, automotive, packaging,
building and construction, commercial transportation and industrial markets,
bringing design, engineering, production and other capabilities of Alcoa's
businesses to customers. In addition to aluminum products and components,
Alcoa also markets consumer brands including Reynolds Wrap® foils
and plastic wraps, Alcoa® wheels, and Baco® household wraps. Among
its other businesses are vinyl siding, closures, fastening systems, precision
castings, and electrical distribution systems for cars and trucks. The
company has 120,000 employees in 41 countries and has been a member of
the Dow Jones Industrial Average for 45 years and the Dow Jones Sustainability
Indexes since 2001.
Web: http://www.alcoa.com
Alcoa
Halts Modernisation Project at Baie-Comeau
Alcoa
announced on June 28th that, despite several months of hard work and good-faith
negotiations between the company and the Quebec Government, the parties
have not been able to generate the conditions that could lead to an agreement.
As a result, Alcoa will not implement its proposed plan to modernise its
Baie-Comeau smelter.
'For many reasons, it was very difficult to make the decision not to go
forward. First of all, we will not meet the expectations of our employees
and the community who supported this project with a lot of hard work and
determination. And, we will miss an opportunity to ensure the long-term
survival of the smelter at a time when economic conditions are favourable,'
said Mr. Jean-Pierre Gilardeau, President of Alcoa Canada Primary Metals.
Mr. Gilardeau met with the leaders from the Baie-Comeau Smelter Modernization
Coalition to inform them of Alcoa's decision. At the meeting, Mr. Gilardeau
shared the company's admiration and appreciation for these leaders who
rallied the community around the project. 'I fully understand their disappointment,
and I share it since we have spent the last three years working to make
these projects a reality and launch expansion in Quebec.'
"We could not reach an agreement on a formula that would have ensured
long-term affordable energy for the Baie-Comeau modernisation project,'
stated Mr. Gilardeau. 'With energy representing more than 30% of our operating
costs, we simply cannot invest a billion dollars in a project with the
risk that energy prices will rise considerably over the life of that project,'
added Mr. Gilardeau. 'Over 40-years, even with only moderate increases,
energy would represent a 10-billion dollar cost.'
The Baie-Comeau modernisation project would have included replacing the
Soderberg cells with a more modern technology and upgrading the Prebake
sector.
Despite this situation, Alcoa intends to keep the Smelter in operation
at least until 2010, as long as environmental requirements, energy availability
and market conditions will allow. The eventual closure of the Soderberg
cells would result in layoffs, but it is still too early to know to what
extent.
Alcoa has recently announced other smelting growth projects around the
world, including those in Iceland, Trinidad, Brazil, Bahrain, Brunei,
China and Australia.
With more than 5000 employees and five billion dollars invested in Quebec
in its three aluminium smelters and in its transformation plants, Alcoa
has and is determined to maintain a strong presence in industrial Quebec.
Very active in Quebec regions, the company will pursue its role of economic
generator.
Background
The modernisation of the Baie-Comeau Smelter and the expansion of the
Deschambault Smelter were the keystone of Alcoa Canada Primary Metals'
expansion strategy, and it would have made Quebec the operational centre
of gravity for Alcoa's North American aluminium production. With other
planned investments in aluminium transformation and related sectors in
the province, the implementation of this strategy would have resulted
in total Alcoa investments of $3 billion in Quebec.
Alcoa is the world's leading producer and manager of primary aluminium,
fabricated aluminium and alumina facilities, and is active in all major
aspects of the industry. Alcoa serves the aerospace, automotive, packaging,
building and construction, commercial transportation and industrial markets,
bringing design, engineering, production and other capabilities of Alcoa's
businesses to customers. In addition to aluminum products and components,
Alcoa also markets consumer brands including Reynolds Wrap® foils
and plastic wraps, Alcoa®
wheels, and Baco®
household wraps. Among its other businesses are vinyl siding, closures,
fastening systems, precision castings, and electrical distribution systems
for cars and trucks. The company has 120,000 employees in 41 countries
and has been a member of the Dow Jones Industrial Average for 45 years
and the Dow Jones Sustainability Indexes since 2001.
Web: http://www.alcoa.com