Welcome to THE GL@ZINE News 8th November 2005

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Pilkington Rejects NSG Offer

The board of Pilkington, the UK glassmaker, on 3rd November rejected an offer of 150p a share from its largest shareholder, Nippon Sheet Glass, branding it as 'materially short of a price which the board is prepared to recommend'.

Stuart Chambers (pictured), Pilkington chief executive, said: 'We want to give the sense that this price is not in the rounding. It is measurably lower than acceptable.

'We had a board meeting (on Wednesday 2nd November) and spent quite a lot of time on this, but frankly our shareholders would not accept it.' At 150p a share, the approach would value the whole of Pilkington, the world's second largest glassmaker, at £1.96bn ($3.29bn).

NSG, which holds a stake of nearly 20 per cent in Pilkington, said: 'We are not commenting now on whether we will raise our offer price or by how much.'

People familiar with the situation said NSG did not need to increase its price immediately. 'There is no other buyer apart from NSG for this business and as a result, the shareholders should decide whether 150p is a fair price,' one person said.

A takeover would make NSG a serious rival to global leader Asahi

Pilkington shares fell initially on the news but recovered to close at 150.5p, down 0.5p. Shares rose 3.5 pence to 155 at one point Monday morning after a weekend press article suggested that the two sides were set to meet later this week in a bid to hammer out an agreed deal but later shares had come back slightly to trade a net penny higher at 152.5.

NSG's move on Pilkington comes four years after the Japanese company took its stake. It also comes as Pilkington has largely finished a comprehensive seven-year debt reduction and restructuring programme.

Analysts are divided about an acceptable price for Pilkington - some believe Pilkington shareholders should hold out for about 180p a share, which would value the company at £2.4bn. But others believe a price between 150p-155p per share is fair.


Pilkington Interims Show Pre-Tax Profits up 22%

'The Group's results in the first six months of the year are in line with our previous indications, with Group profit before taxation up 22 per cent, despite challenging market conditions and increases in energy costs.’ Commented Pilkington Chairman, Sir Nigel Rudd. ‘Our continued drive for manufacturing efficiencies and cost reductions, together with our emphasis on generating cash from our businesses, combined to produce another improved performance. The Group is well positioned to move forward with its transition to the third phase of its strategy over the course of this financial year, and has already begun to target investments into profitable growth opportunities.’

Key Features:
*Good results, despite challenging markets and higher energy costs
*Increased revenue and operating profits from both core businesses - Building Products and Automotive
*Profit before taxation up 22 per cent at £99 million (2004 £81 million)
*Basic earnings per share increased 29 per cent from 4.1 pence to 5.3 pence
*Interim dividend increased to 1.8 pence per share (2004 1.75 pence)
*Continued strong free cash flow at £69 million (2004 £94 million)
*Net debt reduced again to £685 million (2004 £775 million)


Statement by the Chairman, Sir Nigel Rudd

Market conditions remain challenging and energy costs have risen worldwide. Despite this, Pilkington can report a good set of results, with increases in revenue and operating profits across both Building Products and Automotive Products.

Operating profit from the Group's continuing operations increased by 26 per cent from £102 million to £129 million in the half-year to 30 September 2005. Profit before taxation increased to £99 million in the half-year, up 22 per cent on the same period last year. Pilkington continues to focus on cash generation and the achievement of strong free cash flow of £69 million in the half-year has enabled the Group to reduce net debt by 12 per cent since September 2004.

Results
Revenue in the first half was £1.3 billion, 9 per cent up on the first half of last year. Operating profit from the Group's continuing operations was £129 million, an increase of 26 per cent on the £102 million achieved in the first half of last year.

Finance expenses, net of finance income, were broadly in line with last year and reflect higher interest rates applied to a reduced level of borrowings, together with the inclusion of a finance cost charge in respect of retirement benefit obligations and fair value adjustments on financial derivative assets and liabilities, introduced under IFRS.

Building Products
Although competition remains intense in most major Building Products markets, revenues nevertheless improved by 1 per cent on the same period last year, rising to £616 million. The drive for improved efficiencies further lifted profits for the Building Products business to £69 million, an increase year-on-year of 10 per cent.

Building Products Europe, representing around two-thirds of total Building Products sales, has seen signs of recovery in some continental markets, but overall market conditions remain difficult. Prices of standard float continue to fall across the region and the UK market in particular is currently experiencing low demand and high levels of competition.

Despite this, operating efficiencies and an overhaul of the management and administrative structure helped to increase profits in the region. Last year's restructuring improved the overall European result, helped by continuing strong sales of Pilkington Pyrostop(TM) Fire Protection glass. The European energy surcharge continues to mitigate the impact of rising energy costs.

Building Products North America, representing 13 per cent of total Building Products sales, is concentrated on the commercial construction market, which remains depressed. Although improvement is still expected in the medium term, recovery is unlikely in the current financial year.

In South America, the Group's Building Products business continues to perform well, with demand for float glass continuing to grow strongly in Argentina, Brazil and Chile. Although there has been some slowdown in the residential construction sector in Australia, the economy generally remains strong, and the business has turned in another good performance.

Automotive Products
Pilkington Automotive Original Equipment (OE) volumes were robust, due in part to several successful launches of vehicles in which Pilkington products are fitted. The North American Automotive Glass Replacement (AGR) market has stabilised and AGR sales in Europe have improved. As a result, Pilkington Automotive sales increased 15 per cent to £630 million and operating profits of £61 million were £13 million or 27% up on the first half of last year.

More than 55 per cent of Pilkington Automotive's sales are in Europe. The market for light vehicles has been flat, but once again, due to success with the introduction of new models, the Group's sales volumes continue to grow. The European AGR market has been stable. Sustained emphasis on efficiency improvements and cost reductions has helped counter continuing price pressure and rising energy-related costs. As a result, profits in Automotive Europe exceeded the same period last year by 40 per cent.

Over 30 per cent of Pilkington's Automotive business is in North America, where light vehicle build is expected to be around 1 per cent up on last year. The Group's sales to OE manufacturers are higher than last year. In AGR North America, the acquisition of the Autostock Distribution branches has started to flow through into increased sales. North America continues to experience significant price pressure and higher energy costs, but the benefits of increased volumes, operational efficiency improvements and cost reductions resulted in profits 20 per cent above those of the first half of last year.

In South America, light vehicle demand has risen 10 per cent. Strong sales volumes and ongoing manufacturing efficiencies have helped increase operating profits over the same period last year. Results from operations in Australasia have also improved, partly as a result of stronger market volumes, though overall profits were affected by the costs of restructuring the business to face increased import competition. In China, the market continues to expand rapidly and increased emphasis is being placed on developing the cost and operational efficiency of our profitable businesses there.

Joint ventures and associates
Under IFRS the results from joint ventures and associates are disclosed differently from those previously shown under UK GAAP. Pilkington now reports its share of the post-tax profits of joint ventures and associates as a one line item, prior to disclosing the Group's profit before tax. Overall, the share of profits after tax from joint ventures and associates has declined from £11 million in the half-year to September 2004 to £2 million in the half-year to September 2005.

Trading difficulties in Mexico have led to deterioration in Pilkington's share of the result from Vitro Plan SA de CV and subsidiaries (VVP). Additionally, as expected, start-up costs have been incurred at the Group's new Russian joint venture float line with Emerging Markets Partnerships, which is due to be commissioned shortly.

The Group's other principal joint ventures, Cebrace in Brazil and Pilkington Glass France, continue to trade at similar levels to last year.

Energy Costs
The primary energy source for the Group's float plants is gas, and occasionally oil. In addition, electricity accounts for approximately 35 per cent of Group energy costs. Direct energy costs represent approximately 10 per cent of Pilkington's total costs, though this varies between businesses. Following the sharp increase in the cost of gas in North America, in 2000 Pilkington introduced a surcharge on glass delivered to Building Products' customers there. A similar energy surcharge on deliveries of glass to Building Products' customers in Europe was introduced in November 2004, and these measures have helped to offset the impact of increased energy costs during the period.

Outlook
Pilkington continues to follow a clear three-stage ‘Cash for Growth’ strategy. Over the course of this financial year our priorities are to maintain momentum on the cost reduction programme, started in Stage 1, to complete the rebuilding of our financial strength, begun in Stage 2, and to begin the transition into Stage 3, with targeted, disciplined investments into profitable growth opportunities.

The Pilkington-constructed fourth float line in Brazil for our South American joint venture is now in full production, following an excellent start-up. A sound base has been established in China as a platform for future growth, with the three Automotive plants now fully integrated into the global Pilkington Automotive business. The commissioning of the joint venture float line in Russia is due to be completed soon.

Although conditions in most of our markets remain challenging, Pilkington is sustaining its internal programmes to maintain the Group's competitiveness and we have continued confidence for the full financial year.

Web: http://www.pilkington.com


Are 70 Million Transactions a Year a No Go?

As the Trading Standards Institute presses ahead with ‘no go’ scheme for doorstep trading, the GGF questions its impact on consumer choice and the threat to the livelihood of the UK’s 400,000 direct sellers.

Supporting consumer choice? 70 million consumer transactions can’t be wrong.

The Glass and Glazing Federation (GGF) is alarmed to learn of the Trading Standards Institute’s (TSI) plans to extend proposed ‘no go zones’ for doorstep sellers.

The ‘no go’ trials have been launched in an effort to stamp out rogue traders – particularly in the areas of building and property maintenance. The GGF, which represents all the major Home Improvement organisations, has raised serious concerns at the impact the zones could have on legitimate direct selling and consumer choice. As well as affecting immediate, legitimate, direct selling, this initiative could also prevent many legitimate businesses contacting a consumer in their home to book a future appointment for a later detailed product presentation should they wish further information. This would surely be blocking a legitimate exercise of consumer choice.

It’s ironic that the TSI promoted ‘no doorstep trading’ on the back of National Consumer Week, when the consistent growth of direct selling demonstrates that it is a form of shopping

that is welcomed by consumers. The direct selling of consumer goods is now a £5 billion plus channel of distribution in the UK with consumers placing over 70 million individual orders, every year, with direct sellers selling the products of long established companies.

Consumers don’t want their shopping choices restricted to the big retailers and supermarkets – they want a wider offering with better customer service with free delivery to their homes. The fact that BT is funding the zones, is another threat to consumer choice. Direct sellers compete with direct mail and telesales in communicating sales messages to consumers and we deplore this attempt to stifle a well self-regulated competitive marketing channel.

'As the trade body representing responsible businesses doing business in private homes, we are totally committed to helping to outlaw rogue traders. However, we do not agree with the methods adopted by the TSI. The initiative assumes all cold callers are potential criminals and fails to recognise legitimate traders. We believe there are other and better ways of dealing with rogue traders which will not damage legitimate businesses and honest, hard-working, law-abiding direct sellers,' said Ian Chisholm, GGF Deputy Chief Executive.

Synseal at Glassex 06

Synseal Extrusions Ltd is supporting the industry by taking pole position at Glassex for the third year in a row. 'We go to Glassex when we have something to show and 2006 looks set to be another exciting year,' explains Nick Dutton, Synseal's Sales and Marketing Director.

'We are launching Global 600, the new complete low pitch conservatory roof system. And after the successful Glassex 05 launch of SynerJy, the fourth generation fully sculptured suite that integrates windows, doors, patios and conservatories, we've decided to use Global 06 as the launch pad for SynerJy in blue-white - SynerJy blu. There have been many changes in the market this year and we feel it's important for market leaders in the industry to show our commitment to the future. Glassex gives us the perfect opportunity.'

Deceuninck 2009 Business Plan Expects Higher Growth

Deceuninck Group expects to grow by an average of 8% per year compared with 2004 in the coming years. By 2009 Deceuninck expects turnover of about 850 million euros and an annual growth in the operating result of at least 20% on average. The business plan assumes stable but high raw materials prices at the 2004 level.

Deceuninck announced its 2007 business plan two years ago in 2003. At the time, it assumed turnover of 700 million euros, operating result of 10% and cash flow of 20% for 2007.

'lt is now time to reassess this business plan and we are also looking two years further ahead straight away,' states Clement De Meersman, CEO of Deceuninck (pictured).

'The macroeconomic environment has changed to such a degree that an adjustment is imperative. In addition to the previously unseen increases in raw materials prices we are confronted with sharply increase oil prices, which of course has an impact on haulage and energy bills. Our strategic markets are also developing faster than expected in terms of life-cycle phase, just like the level of competition which they have to cope with.'

Deceuninck will continue to develop the projects launched in past years up to 2009. lnnovative products and services and a further optimisation of productivity are of central importance here. Deceuninck expects an internal volume growth of an average of 8% per year compared with 2004 and turnover of about 850 million euros in 2009.

Innovation & Growth

Deceuninck expects the strongest growth from its new building profiles in wood composite, primarily in the United States but also in Europe. A wide range of opportunities still exists in residential and non-residential construction, in which traditional construction materials could be replaced by more durable, maintenance friendly and ecologically efficient variants in PVC or wood composite.

Deceuninck expects significant internal growth for its window systems. In keeping with its corporate mission Deceuninck is focusing on products and processes with high added value.

In the traditional western markets Deceuninck expects the strong rising demand for coloured window systems to continue on a accelerated basis. Deceuninck is in an excellent position for this with its Deuctone range. Demand for a good basic product still predominates in growth markets, primarily Eastern Europe and Turkey. With its outstanding insulating characteristics and good price/quality ratio, a PVC window is still a winner.

Deceuninck therefore expects a shift in its geographical volume distribution in favour of Turkey and Eastern Europe. Due to high expectations relating to sales of wood composite and a strong PVC window market, especially on the west coast, Deceuninck anticipates that turnover in the United States will also gain in importance in 2009.

Productivity, Debt & Cashflow


The platform and streamlining projects of recent years are being continued unabated and developed even more intensively. Takeovers of various sector counterparts and their integration have provided some synergy advantages. A range of synergy opportunities still exist. 'These opportunities relate to all of our operational activities. A series of possibilities is also available for vertical integration,' says De Meersman.

The 2009 business plan assumes a further reduction in the net financial debt to approximately 100 million euros in 2009. This reflects a gearing of maximum 40%.

'We expect that the combination of continued innovation, organic growth, increased productivity and further debt reduction will lead to annual turnover growth of 8% on average compared with 2004. Moreover, we anticipate an annuai rise in the operating result of at least 20% and an annual increase in cash flow of at least 12% up to 2009 compared with the difficult transitional year 2004,' De Meersman also points out.

Subject to reservations relating to unexpected developments in PVC resin prices during the last two months of this year, we expect turnover for 2005 in excess of 630 million euros, an improvement in the operating result (EBITA) by 20 to 30% and an enhancement in cash flow of 10 to 15% compared with 2004,' adds Dirk Demeulemeester, CFO of Deceuninck.

Deceuninck is an integrated group of world format, specialised in compounding, tool fabrication, design, development, extrusion, finishing, recycling and injection moulding of PVC-U window systems and profiles and gaskets for the building industry. The company is active in more than 60 countries, has 31 subsidiaries (production and/or sales) and is supported by 3 000 personnel, 670 of them in Belgium. In 2004 the Deceuninck Group achieved consolidated sales of 582.1m euros.


Masco on Downward Trend but £200m Cost Cutting Measures in Place

Masco Corporation reported on November 1st that net sales from continuing operations for the quarter ended September 30th, 2005 increased six percent to a record $3.4bn compared with $3.2bn for the third quarter of 2004. Income from continuing operations for the third quarter of 2005 was $262m compared with $289m m for the comparable period of 2004. Operating profit margins were 13.9% in the third quarter of 2005 compared with 15.4% in the third quarter of 2004

While third quarter 2005 sales and earnings benefited from the strong new construction market and certain selling price increases, the Company's third quarter results were adversely affected by recent additional increases in commodity, energy and freight costs, as well as product mix.


The Company believes that higher energy costs and recent trends indicating lower consumer confidence and the related slowing in sales of certain retail products will continue. Given these factors, together with recent additional commodity cost increases, most of which are not expected to be offset by selling price increases until the first half of 2006, the Company believes, based on current business trends, that fourth quarter 2005 earnings from continuing operations will be in the range of $.48 to $.52 per common share and that full-year 2005 earnings from continuing operations are expected to be in a range of $2.20 to $2.24 per common share compared with the Company's previous guidance of approximately $2.30 per common share. The Company's guidance excludes any additional costs associated with its profit improvement programs and any other items.

Fourth quarter 2004 earnings from continuing operations were $.55 per common share excluding the impact of the non-cash goodwill impairment charge of $.31 per common share. Including the charge, reported earnings were $.23 per common share. Results for the fourth quarter of 2004 benefited from gains from the sale of financial investments of $.06 per common share, partially offset by an impairment charge of $.03 per common share, related to certain financial investments. Results also benefited by $.02 per common share from a reduction in the Company's tax rate related to the utilisation of foreign tax credits generated in the fourth quarter on distributions of foreign earnings.

The Company has accounted for the 2004 dispositions of Jung Pumpen, The Alvic Group, Alma Kuchen, E. Missel and SKS Group, and the 2005 dispositions of Gebhardt Consolidated and the GMU Group as discontinued operations.

Third Quarter 2005


Net sales from continuing operations increased six percent, with North American sales increasing seven percent and International sales increasing one percent. Net sales in North America benefited from strong housing starts and certain selling price increases. In local currencies, International sales increased one percent compared with the third quarter of 2004.

Sales of assembled cabinets, installation services and windows in North America were particularly strong in the quarter.

Key retailer sales from continuing operations increased two percent in the 2005 third quarter compared with a 10 percent increase in the second quarter of 2005, a decrease of two percent in the first quarter of 2005 and a six percent increase in the third quarter of 2004.

Sales by segment in the 2005 third quarter versus the 2004 third quarter were:

* Cabinets and Related Products sales increased eight percent;
* Plumbing Products sales increased four percent;
* Installation and Other Services sales increased nine percent;
* Decorative Architectural Products sales increased five percent; and
* Other Speciality Products sales decreased one percent.

Income from continuing operations was $262 million compared with $289 million for the third quarter of 2004.

Earnings from continuing operations were $.61 per common share compared with the Company's guidance of $.60 to $.64 per common share and compared with $.64 per common share for the 2004 third quarter.

The Company's 2005 third quarter results benefited from the strong new construction market and certain selling price increases, partially offset by continued increases in commodity, energy and freight costs, as well as product mix.

Gross margins were 28.7 percent in the 2005 third quarter compared with 29.4 percent in the second quarter of 2005 and 31.2 percent in the third quarter of 2004. Operating profit margins, as reported, were 14.0 percent in the third quarter of 2005 compared with 14.1 percent in the second quarter of 2005 and 15.5 percent in the third quarter of 2004. Excluding the pre-tax income regarding the litigation settlement of $1 million and $2 million in 2005 and 2004, respectively, operating profit margins were 13.9 percent in the third quarter of 2005 compared with 15.4 percent in the third quarter of 2004. Margins in the third quarter of 2005 were adversely impacted by increases in certain operating expenses, including increased commodity, energy and freight costs and product mix.

At the end of the quarter, the Company had a strong balance sheet with over $1.5 billion in cash and $2 billion in unused bank lines. The Company intends to use a portion of its cash to retire $800 million of 6.75% notes due in March 2006.

Full-Year Outlook

The Company is pursuing a variety of initiatives to offset cost increases and increase operating profit, including sourcing programs, the restructuring of certain of its businesses (including consolidations), manufacturing rationalisation, headcount reductions and other profit improvement programmes.

As previously disclosed, the Company believes these initiatives, which began in early 2005, will reduce annual costs by $200 million by the end of 2007. While the Company may incur expenses and charges related to these programmes, implementing these initiatives should improve the Company's earnings outlook for 2006 and beyond.

The Company believes that higher energy costs and recent trends indicating lower consumer confidence and the related slowing in sales of certain retail products will continue. Given these factors, together with recent additional commodity cost increases, most of which are not expected to be offset by selling price increases until the first half of 2006, the Company believes, based on current business trends, that fourth quarter 2005 earnings from continuing operations will be in the range of $.48 to $.52 per common share and that full-year 2005 earnings from continuing operations are expected to be in a range of $2.20 to $2.24 per common share compared with the Company's previous guidance of approximately $2.30 per common share.

Web: http://www.masco.com


PPG Reports Record Record Q3 Sales but Glass Sector Weak

PPG Industries reported today third quarter net income of $157m, or 92 cents a share, including aftertax charges of $25m, or 15 cents a share, for net legal and insurance settlements; $11m, or 6 cents a share, for direct costs related to the impact of hurricanes Katrina and Rita; and $3m, or 2 cents a share, to reflect the net increase in the current value of the company's obligation under its asbestos settlement agreement reported in May 2002.

The company estimates that aftertax earnings were also reduced by approximately $6 million, or 4 cents a share, due to lower sales volumes resulting from the hurricanes.

On Sept. 26, following Hurricane Rita, PPG declared force majeure for products produced at its Lake Charles, La., chemical complex. The damage caused by Hurricane Rita resulted in the shutdown of the Lake Charles facility for a total of eight days in September. On Oct. 6, the facility resumed production at reduced operating rates and has increased production throughout the month.

The majority of the net charges for legal and insurance settlements relate to a settlement reached this week on a civil glass antitrust matter. The case was first filed in 1997 and is pending in federal court. The settlement remains subject to the court's final approval.

Sales were $2.55bn, a record for the third quarter.

That compares with third quarter 2004 net income of $194m, or $1.12 a share, including an aftertax charge of $4m, or 3 cents a share, to reflect the net increase in the current value of the company's obligation under its asbestos settlement agreement. Sales were $2.41bn.

For the first nine months of 2005, PPG recorded net income of $483m, or $2.81 a share, which includes aftertax charges of $116m, or 67 cents a share, for net legal and insurance settlements; $11m, or 6 cents a share, for direct costs related to the impact of hurricanes Katrina and Rita; $12m, or 7 cents a share, for debt refinancing; and $10m, or 6 cents a share, to reflect the net increase in the value of the company's obligation under the asbestos settlement agreement. The company estimates that aftertax earnings were also reduced by approximately $6m, or 4 cents a share, due to lower sales volumes resulting from the hurricanes. Sales for the first nine months of 2005 were $7.70bn.

For the first nine months of 2004, PPG recorded net income of $500m, or $2.89 a share, including an aftertax charge of $13m, or 8 cents a share, to reflect the net increase in the value of the company's obligation under the asbestos settlement. Sales were $7.10bn.

'We delivered record third-quarter sales, and our operating performance was outstanding, despite a variety of significant economic headwinds,' said Charles E. Bunch, chairman and chief executive officer. 'This is the 10th consecutive quarter we've generated year-over-year record sales. In fact, all six of our coatings businesses and our chemicals segment set third-quarter sales records.

'We remain excited about our growth prospects, fueled by a strong array of products and a growing presence in emerging markets. We believe this will enable us to continue generating strong cash flows, which have been and will be used to benefit our shareholders.'

Coatings sales increased $78 million, or 6 percent, as a result of improved selling prices across most businesses, strengthening foreign currencies and higher volumes, primarily in aerospace and architectural. Operating earnings were up $11 million due to the benefits of higher selling prices, higher other income due to the favorable impact of several insurance settlements and higher volumes, which more than offset the negative impact of inflation, primarily high raw materials costs.

Glass sales decreased $5 million, or 1 percent, due to lower volumes across all businesses except automotive replacement glass and lower selling prices, which were partially offset by the impact of strengthening foreign currencies. Operating earnings were down $82 million largely due to the adverse impact from the settlement of the civil glass antitrust matter. Additionally, inflation, including higher energy costs, and lower volumes exceeded the benefits from improved manufacturing efficiencies.

Chemicals sales increased $65 million, or 12 percent, due primarily to higher selling prices for chlor-alkali products. These increases were slightly offset by lower volumes for chlor-alkali products including the unfavorable impact of the hurricanes. Operating earnings were up $26 million primarily due to higher selling prices, which exceeded the impact of higher energy costs, lower manufacturing efficiencies and the impact of the hurricanes.


European Window Market on Upswing

According to a current study by InterConnection Consulting Group, the European Window Market developed favourably in 2004, despite several weaker regions. The study contains detailed information about all important sectors of the European Window Market.

In 2003, a long period of negative development in the European Window Market still needed to be analysed. However, the market overcame the recession in 2004 – for the first time in several years, growth rates were positive, with the market growing 1.9%. This positive trend will continue in the coming years – 2005-2007 will bring consistently positive growth rates in the European Window Market.


The total market is put into perspective, however, when looking more closely at its individual regions. The DACH Region (Germany, Austria, Switzerland), which has been greatly effected by the German market’s mediocre development, still remains the largest window market region in Europe, yet it will continue to lose ground through 2007 and should be passed by the UK & Ireland in 2005. In contrast, Spain & Portugal, as well as the Benelux countries, have continued to gain in strength. The Spain & Portugal region is especially strong, expanding its share of the European market to nearly 20%.



The most important material group in Europe is again PVC-windows, accounting for over 35% of the market. On the other hand, combination-windows have shown the most dynamic development over the past few years. With an average growth rate of 6.3%, this segment will continue to gain strength in future years, even though it will only command around 10% of the market by 2007. Metal-windows also made a strong showing, commanding nearly 30% of the market and growing at an average rate of 2.6% - the solid development of the non-residential construction sector definitely played a significant role.


Throughout Europe, renovation, with 56% market share, continues to carry more weight than new construction; however, considerable differences are noticeable within the individual re-gions. Spain & Portugal, especially, have presented themselves as world champions in the new construction sector. With new construction rates greater than 70%, the region is break-ing away from the pack. The UK & Ireland, as well as Italy, are on the opposite end of the spectrum – in both regions, the renovation rate is nearly 70%.




About the Study:
The IC MARKET TRACKING® Fenestration in Western Europe study is a detailed market and sector analysis of the European Fenestration Market. It contains both quantitative numbers and values for 1999-2004, development forecasts through 2007f, and detailed turnover and sales data for the TOP-150 suppliers in Europe.
The fenestration markets in the UK, Ireland, Norway, Sweden, Denmark, Finland, France, Belgium, the Netherlands, Luxembourg, Ger-many, Austria, Switzerland, Italy, Spain and Portugal were analysed. The study is available for purchase through InterConnection Consulting Group.

About IC Consulting Group:
The InterConnection Consulting Group, with headquarters in Vienna, is an international market research organisation which offers both sector- and company-specific solutions. ICG delivers exact data and facts about current markets, including their development, using the most modern market research techniques.

More information about InterConnection can be found on the homepage http://www.interconnectionconsulting.com.


Industry Guidelines for Curtain Walling Launched

Industry guidelines for calculating the U-values of curtain walling have been established, thanks to the Council for Aluminium in Building (CAB) and the Centre for Window and Cladding Technology (CWCT).

Systems companies and independent consultants from the cladding industry have been involved in drawing up these first ever, comprehensive guidelines, being published before the end of 2005 as a second tier document to the government’s finalised Part L2 regulations on thermal performance. The new regulations come into effect from April 2006.

'If Part L2 is to be completely effective, it is essential the construction industry adopts a consistent approach to calculating the U-values of curtain walling,' says Senior Aluminium Systems technical manager Derek Hodgson who chairs the joint CAB-CWCT Thermal Group Committee that has drawn up the new guidelines.

'Curtain walling has finally been recognised as requiring attention in its own right and, for the first time, a universal system of calculation has been developed which will become the industry standard. Until now there has been a lot of confusion about how to do these calculations with a lot of different methods or interpretations being used.'

Publication of the CAB-CWCT guidelines marks a major breakthrough for the curtain walling sector. Curtain walling was not adequately addressed in the 2002 Part L and it was clear that if the revised regulations were to be workable, a universal method of calculation was vital to counter the current confusion.

Said Derek: 'The government has listened to our concerns at each stage in the process. We believe that our guidelines, published in conjunction with their final document, will bring greater clarification and consistency in application of the new regulations. This will be for the ultimate benefit of all involved with meeting building energy performance criteria, from architects to end users.'

The new guidelines document – The Thermal Assessment of Window Assemblies, Curtain Walls and other Non-traditional Walls- is available from both the Council for Aluminium in Building or the Centre for Window and Cladding Technology at Bath University.


Bohle and Pearsons Strike Partnership Agreement on Art Glass

Bohle UK has sealed a partnership agreement with Pearsons Glass in order to further develop the interests of both companies in the Art Glass sector. Under the deal, Bohle will sell all of its sheet art glass and closely associated products to Pearsons, the UK-wide art glass distributor; and Pearsons will become an official wholesaler and distributor of Bohle tools and machinery for the same markets.

Gary Dean, Bohle Managing Director explained: ‘Bohle has a continuing focus on the core activities of glazing and glass processing tools and machinery, and we want to further develop these areas and intensify our resources for development here. On the other hand Pearsons Glass is very well established in the Art Glass distribution sector, and therefore it makes perfect sense for us to form this agreement for the mutual benefits of both companies, and our respective customers. We will both continue to focus on and develop our core strengths - a win-win situation for everyone.’

Kilns, Sandblasting Machinery, glasscutters, pliers and all of Bohle self-produced products for artistic glasswork will continue to be available from Bohle.


Tôkyô Espagnolette Handle - Worth the Wait

Hoppe (UK), the supplier of door and window hardware, is rolling out what the company describes as its flagship product, the new Tôkyô series espagnolette handle.

Roger Benton, Joint Managing Director of Hoppe (UK), explains: ‘We're delighted to announce the autumn launch of Tôkyô to add even more choice to our comprehensive range of hardware. Bringing premium quality products to market isn't always plain sailing, especially when we pay so much attention to getting it absolutely right. In this case, this has even meant postponing the launch until now. We knew that if we weren't 100% happy with the end product, then our customers wouldn't be either. As is often the case with new product developments, the devil really is in the detail and we've used the last few months to get the finishing touches right. Now that we have reached the high level of quality our customers rely on, we will be starting deliveries on the 1st of December.’

Web: http://www.hoppe.co.uk


Synseal is Number One in Roofs

Co Durham based independent roof specialist TA Plastics says Synseal is number one in roofs. Steve Averre, TA Plastics' Director, explains: ‘Synseal is probably market leader and we're not surprised. We have been in business since 1977, and fabricating roofs for the last 15 years so we know what makes a good roof. When Synseal first launched the Shield roof we could see the advantages in the system, but because we are an independent roof specialist we had to wait until Global was released.

‘We were one of the first Global fabricators and we haven't looked back since. Synseal continues to make constant innovations to Global to keep it at the cutting edge of conservatory roofing. We pride ourselves on giving our customers the best conservatory roof available. With this in mind, once the 35mm polycarbonate option was available, we introduced it to our customers with great success. All our roofs are fully fabricated and delivered by our own transport, usually within three days of order, but recently we were asked to make one in a day for a customer as he'd forgotten to order it! The ease of fabrication of Global makes this possible. And our customer feedback is that Global is easy to install too. There's nothing to compare with the Global roof. That's why we believe Synseal is number one in roofs.’

Tel: 01623 443 200


Royal Visit to Speed Frames Majestic New Offices

HRH The Duke of Kent officially opened the new office block at Speed Frame's, Goldthorpe Head Quarters.

His Royal Highness unveiled a commemorative plaque in reception and toured the state of the art office facilities and factory site.

 

Speed Frame PVCu Ltd says that it is the U.K's largest manufacturer of windows, doors and conservatories which has been the first in the country to be awarded the B rating for energy efficiency.

Chairman, Mr Ian Harrison: ‘We are extremely honoured to receive a member of the Royal Family to our prestigious new site’.


A Warm Reception for SGG PLANITHERM® and Document L

The two events organised by Solaglas, for companies interested in buying SGG PLANITHERM TOTAL 1.3 in stock and single toughened form, were well attended and well received. The company says that the format of each event no doubt contributed to the high numbers.

The morning presentation sessions examined the accelerating transition of the UK low-E market to soft coats, due to the superior neutrality and thermally insulating performance of these products. This was followed by an explanation of how simple it actually is to process the SGG PLANITHERM TOTAL 1.3 product, thanks to its durable coating and the fact that this 'single-stock' product can be used annealed or toughened (or laminated).

The commercial, technical and marketing support on offer from Solaglas is extensive and examples were presented, clearly illustrating how customers can benefit significantly from switching to soft coat low-E glass. A full update on the current status of Document L of the Building Regulations for England and Wales was the final, detailed presentation before lunch.


Kathryn Dalgleish, Solaglas Marketing Manager (MSN & Architectural) presents to an audience of 50 at the northern event.

Kathryn Dalgleish, Solaglas Marketing Manager (MSN & Architectural) commented, ‘There was an excellent atmosphere at these events, with so many potential SGG PLANITHERM TOTAL 1.3 customers saying they can see this product is the way forward for low-E. The statistics show that the market is moving to soft coat low-E glass due, largely, to its clearly preferable visual appearance. SGG PLANITHERM TOTAL 1.3 has been designed specifically for the UK market, combining the superior thermal performance and visual characteristics of soft coats with the processing durability more associated to hard coats. It's an excellent choice for Document L and for Window Energy Rating (WERS).’

The afternoon sessions varied by location. At the northern event, attendees were transported by coach to the Saint-Gobain Glass UK site in East Yorkshire, the UK winner of the Best Factory Awards 2005. Here, they were able to view float glass manufacture, the SGG PLANITHERM coating processes and the rigorous quality control measures.

At the midlands event, attendees were taken to Solaglas MSN Coventry to see how simple and quick the various methods of edge deletion can be, from cost-effective hand-held edge deletion tools that take seconds to use, to edge deletion tables.
Solaglas will be running further events in the New Year, focusing on the new Document L.

For a copy of the Solaglas Document L guide, email: solaglas.msn@saint-gobain-glass.com


Eurocell Building Plastics Opens its New Folkestone Trade Depot

On Tuesday 1st November, Eurocell Building Plastics, the extruder and countrywide distributor of PVC-u products, opened its new depot in Folkestone, Kent.

In recognition of the expanding market within the South East, the addition of the Folkestone depot, to Eurocell's already established 13 depots in the region, shows the manufacturer's continued support to its customers within the building industry.

Eurocell Building Plastics has over 60 trade counters countrywide, teamed with its distribution fleet of over 100 vehicles; Eurocell says that it is committed to offering a consistent and reliable service for its customers who benefit from buying direct from the manufacturer.

Stocks will include a multitude of Eurocell's products such as window trims and roofline products, and also an array of associated merchandise in high demand within the building industry.

Dedicated to offering its customers quality and value for money, Eurocell Building Plastics' Folkestone depot will be open for business six days a week from 8am to 5pm, Monday to Friday, and 8am to 12noon on Saturdays.

Web: http://www.eurocell.co.uk


CAB Regional Meeting

The historic Brands Hatch racing circuit was the venue for the latest meeting of the Council for Aluminium in Building. A former mushroom field in 1926 the site was quickly transformed into a cycle track as the area formed a natural bowl ideal for spectators. Motorcycling quickly followed and in 1947 the BBC’s first broadcast of a grass track meeting was televised from Brands Hatch.

Situated at the new and impressive Stirling Suite at Brands Hatch, 130 CAB members and guests from the aluminium in building supply chain were greeted by spectacular views of the circuit and circuit testing for the British Touring Car Championship. After a short members meeting, guests and members networked over light refreshments before being entertained by two of the top speakers in the Glass sector, John Colvin and Brian Waldron who have both worked for some time within Pilkington Glass as consultants.

The guest speakers created more of a forum than a set talk and soon were fielding all forms of answers on the subject of glazing in today’s construction industry, paying particular attention to the new standards being introduced. Chairing the discussion was Barry Josey of Bickerdike Allen Partners, one of the countries leading Building Technology Consultants, who ably kept the content and questions flowing.


Left to right: Barry Josey – Bickerdike Allen Partners, Justin Ratcliffe – CAB Director, John Colvin and Brian Waldron.

Both speakers surprisingly find the time to sit on many of the BSI, CEN and ISO committees which are influential in ensuring new standards can be met by both UK and European manufacturers and installers.

The CAB Regional Events Programme has increasingly become recognised as a regular meeting place for the aluminium in building supply chain in the UK. Its emphasis on providing up to the minute information on pertinent technical and marketing issues for Members and their guests has led to a shortlisting for the 2005 Construction Marketing Awards.

The next regional meeting for the CAB is to take place at the famous Falkirk Wheel in Scotland on the 30th of November where guests and members will experience one of the worlds most modern boat lifts capable of moving some 300 tonnes of water and canal boats 35m in height.

In the photograph, left to right are Barry Josey – Bickerdike Allen Partners, Justin Ratcliffe – CAB Director, John Colvin and Brian Waldron.

Further information about membership can be found on the CAB website at http://www.c-a-b.org.uk and the CAB’s newsletter at http://www.aluminiuminarchitecture.com


Celuform Pulverises the Opposition

The plastics industry is well known for achieving high percentages of recycled and reworked material, but one building products manufacturer is going further than most by investing £100,000 in a dedicated grinding and pulverising machine that will raise reclaim levels even higher.

Celuform, the PVU-ue roofline, cladding and window products company, has commissioned the new equipment at the main UK site in Aylesford, Kent, as well as a twin cylinder industrial compactor to compact non-recyclable waste for delivery to landill. Andy Jarrett, the company's operations manager says that these developments are key to ensuring that the highest environmental and sustainability standards are maintained.

'Because we process tens of thousands of tonnes of PVC each year, the investment has a double benefit: we reduce our environmental impact and will save money,' he said.

'Also, as raw material prices have risen by leaps and bounds over the past two years, any action that minimises the effects of rising costs have got to be good for our customers. In addition, the installations will improve our self-reliance because all processing operations are now in-house.'

Celuform produces a full range of roofline, cladding and windowboards to suit all applications. Features include plain or decorative choices, square or bull-nosed profiles, as well as a wide selection of white finishes and colours such as Expresso Brown, Mahogany, Golden Oak and Ebony. Widths range from 150 - 450mm. Widely specified Celuform brands include Conquest, Elite, Esprit and Duoform.

Celuform says that it was the first UK manufacturer of PVC-ue building products and, following the acquisition of Vekatrim earlier this year, is now the UK's largest manufacturer of cellular plastic roofline and cladding products.

Tel: 01622 719199
Email: info@celuform.co.uk
Web: http://www.celuform.co.uk


Conservatory Outlet chooses Haffner

Conservatory Outlet, the new initiative for installers who want to add or increase sales in conservatories, has taken receipt of the company’s new SBA Cutting and Working Centre from Haffner GB. Having consistently grown to a steady 400 frames per week from its manufacturing site in Wakefield, Yorkshire, Conservatory Outlet needed to increase its production output to 600 frames due to continuous product demand. Having studied the market for the best possible machine to support this growth, Conservatory Outlet turned to Haffner GB.

Managing Director of Conservatory Outlet, Matthew Glover, explains: ‘We first approached Haffner as its SBA Cutting and Machining centre seemingly matched our manufacturing requirements. Having looked at similar types of machines on the market, the SBA Cutting Centre is far superior in terms of value for money, finished product quality and ease of application. The SBA Cutting Centre brings automation technology into our manufacturing operation which allows us to operate at maximum efficiency and output, saving valuable time and money. We are delighted with our purchase and have witnessed immediate positive results to our production.’

The automation technology of the SBA Cutting and Work centre has directly influenced fabricating methods with the industry increasingly accepting hands-off control. In the past, the staff ratio was typically seven to eight people to produce a volume of up to 750 frames per week; with the SBA machining centre that has been reduced to just one.

So delighted was Conservatory Outlet with the standard of machinery and back up support from Haffner GB, that it purchased a replacement CNC Corner Cleaner from the company. This has allowed it to clean its radius profile with perfect results every time due to the precision of the CNC machine and the special cutters designed by Haffner.

For more information on the products from Conservatory Outlet visit http://www.conservatoryoutlet.co.uk

For more information on the full range of products from Haffner GB Ltd, including the SBA Cutting Centre, contact Dave Thomas on 01785 814032.


The Silver Van Men...

Reflex conservatory roof glass is now being delivered to site by a new fleet of Silver Renault Master vans. Twice van of the year the double award winning vehicles have been sign written with the reflex logo in large white graphics so home owners can see that they are getting the real thing when buying reflex.

With sales of reflex glass now more than 5000m2 a month (60 roofs a week) the fleet is being expanded to cope with the demand. 'Many conservatory companies have tried other performance glass products from standard glass unit companies and struggled with unit rejects, lower performance or limited guarantees.' says the company.

'Roof-maker Ltd has been a volume distributor of reflex for a couple of years now, with reflex customers can have the complete package: Best branded product, Best U-value product on the market, Best solar performance, Best presentation, Best quoting/costing service, Best quality control and best commitment to delivery date.'

For more details or a brochure contact Sally Hassle on 0116 269 6297


Vitro Offers for Sale its Corporate Headquarters

Vitro, S.A. de C.V. announced on October 11th that it is offering for sale its corporate headquarters located in San Pedro Garza Garcia, Mexico.

The company has entered into a formal process to sell two corporate office buildings and their surrounding undeveloped land. One building covers 119,000 square feet built on a property of 4.7 acres and the other covers 67,000 square feet built on a property of 3.8 acres. The offer also includes 26.6 acres of undeveloped land.

This sale is in line with Vitro's Strategic Plan aimed at reducing the Holding Company's debt.


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