Antitrust
Commission Inspections in Hardware
Sector
The
European Commission can confirm that on 3rd-4th July 2007 Commission officials
undertook unannounced inspections at the premises of different producers
of hardware for windows and doors in several Member States of the European
Union.
The Commission describes hardware for windows and doors as 'the metal
equipment used for the fastening, handling and locking of windows and
doors, including for instance bolts, handles, locks and hinges'. The Commission
has reason to believe that the companies concerned may have violated Article
81 of the EC Treaty.
The Commission officials were accompanied by their counterparts from the
relevant national competition authorities.
Surprise inspections are a preliminary step in investigations into suspected
cartels. The fact that the European Commission carries out such inspections
does not mean that the companies are guilty of anti-competitive behaviour;
nor does it prejudge the outcome of the investigation itself. The European
Commission respects the rights of defence, in particular the right of
companies to be heard in antitrust proceedings.
There is no strict deadline to complete cartel inquiries. Their duration
depends on a number of factors, including the complexity of each case,
the extent to which the undertakings concerned co-operate and the exercise
of the rights of defence.
Cuts
in Chinese Subsidies Affect UK Hardware Industry
Recent
news from China has significant implications for the UK window industry,
increasing the cost of many imported items.
Introduced in 1985, tax rebates for exporters have made Chinese products
extremely competitive, effectively reducing real prices by as much as
17.5%.
However, starting in July, China is cutting or eliminating tax rebates
for some 2800 items - under pressure to suppress overheated export growth
and ease friction between China and its European trade partners.
This
change affects a number of traditional metal manufactured items, including
hardware products such as hinges, for which the tax rebate will reduce
from 13% to just 5%. And, with just 10 days notice of the change, many
UK suppliers are having to introduce immediate price rises.
In the longer term, as the Chinese Government seeks to comply with international
trading rules, all export subsidies and tax incentives are likely to be
eliminated, resulting in further price increases.
Martin Johnson (pictured), MD of Nico Manufacturing, comments on the recent
news:
‘As a UK manufacturer, we welcome the recent announcement by the
Chinese Government. The cuts in subsidies will help level the playing
field and create a climate of fairer competition.’
He adds ‘Although the lower costs of far eastern imports can appear
attractive to both suppliers and customers, there can be problems with
sourcing items from China - especially in relation to quality and lead
times.
'Certainly
we have seen customers return after problems with buying Chinese hardware.
Now, with price differentials falling, I am sure that many other fabricators
and installers will reconsider the advantages of buying hardware from
British manufacturers.’
Tel: 01255 422333
Email: sales@nico.co.uk
Web: http://www.nico.co.uk
New
Day and Venue for Next PIGS Event - Wednesday 18th July
The
next meeting of the glazing industry's favourite networking event, Publicity
in Glazing or PIGS, will take place on Wednesday 18th July - a change
from the traditional Thursday. The new venue, the Savoy Tup, promises
real ale and an easy location in Covent Garden.
The Savoy Tup pub is located on Savoy Street, off The Strand, and the
private upstairs bar will be open from 5.30pm. Click on the link for more
venue details and a map: http://www.massivepub.com/venue.asp?venueid=28
The sponsors for the evening include Glassex-GP&T and Brian Corthine
of Taylor Alden PR and Marketing. Other potential bar sponsors should
contact Claire Shilling of Glassex-GP&T on 0208 277 5533.
PIGS is a free networking event open to anyone connected to marketing
within the glass and glazing industry. It attracts editors and advertising
staff from the leading glazing media, advertising and PR companies, marketing
specialists and managers from all parts of the glass and fenestration
industry. A free bar is laid on courtesy of the generosity of the event
sponsors and all relevant people are welcome to attend.
The
Low-E Market is 'Totally' Changing
The
recently published draft ‘Climate Change Bill’ sets an ambitious
target to reduce CO2 emissions by 60% below 1990 base levels by 2050.
According to DEFRA, heating, cooling and lighting of all buildings currently
account for approximately 46% of all energy consumption related CO2 emissions
in the UK (27% residential and 19% non residential). No wonder that the
Government is already proposing carbon-zero new-builds by 2016 and reviewing
tax incentives for energy efficient replacement windows using the Window
Energy Rating scheme.
Over the past few years 'offline' low-emissivity (low-E) glass products
have been responsible for the sweeping changes currently revolutionising
the market for energy efficient glazing.
Products like SGG PLANITHERM TOTAL low-E glass are produced 'offline'
on a magnetron coater. This process is carried out after the glass has
been made and involves the deposition of a series of metallic oxide layers
onto the surface in a vacuum. Thanks to the flexibility of magnetron coating
technology the multiple layers can be modified and adapted to achieve
excellent thermal insulation (U-values) and neutrality, whilst maximising
solar gain (g-values) and passive natural lighting.
‘The need for energy efficiency will continue to drive the increased
use of these products in the future’, explains Susan Fitzpatrick,
Product Manager at Saint-Gobain Glass. ‘With its optimum balance
of very low U-value and high solar gain, PLANITHERM TOTAL is amongst the
most energy efficient products in the market and with the added benefits
of neutrality and lack of haze it is rapidly becoming the low-E glass
of choice, particularly in the context of Window Energy Ratings’.
For more visit http://www.saint-gobain-glass.com
or email glassinfo.uk@saint-gobain-glass.com.
Paramount's
'Royal-flushed' with UK's Biggest Home Conservatory
Network
VEKA member Paramount Window Systems has been commissioned to create what
is thought to be the UK's biggest-ever domestic conservatory, at a house
in Chester that was formerly owned by the Queen.
The bespoke installation, based on the VEKA Matrix 70 profile with a lantern-design
portal roof from Sash UK, will cover over 2,500sq ft of floor space and
represent a significant six-figure investment for the homeowner.
‘Its design takes the form of three conservatories in one,’
said Eddie McGrath, Managing Director of the Lancashire-based fabricator.
Eddie
McGrath with preliminary plans for the conservatory.
‘It
is effectively two large constructions connected by a third to form an
S-shape, and will eventually house a swimming pool, gym and snooker room.’
He added: ‘This will be a very impressive addition to a beautiful
classical home. Quite aside from its commercial value, this installation
will be a real pleasure for all of us.’
As a whole, the project will take several weeks, including dismantling
an existing timber conservatory.
The house, on the outskirts of the city, was formerly the Queen's official
Cheshire residence and the Royal Crest can still be seen on the building.
Eddie McGrath, Paramount, 01942 877776
Caption: Eddie McGrath with preliminary plans for the conservatory.
Shield
is the most Cost Effective 'A' Rated Window in the Industry
'Synseal's
Shield is probably the most cost effective 'A' rated energy saving window
in the industry’, says Jason Wilder, CWG Choices' Managing Director.
‘The sealed unit specification is St Gobain's planitherm and diamant
glass, argon filled and with Edgetech's Super Spacer. Then, the real beauty
of it all is, that we can use standard Shield without modifications and
have an 'A' rated window.
‘Not a day goes past without Global warming being in the News, at
the highest levels. So now is the time to be involved, by producing a
product that provides a solution. Consumers want to choose products that
reduce carbon emission, but are not sure where to go and do not want to
pay a massive premium. To this end, our customers need products that have
the top rating but are affordable and with the 'A' rated Shield we have
the perfect solution.’
Synseal and CWG Choices fully appreciate the importance and the hardwork
done by the installers. In recognition of this and to support the installers,
CWG has produced a brochure which helps put over the 'Energy Saving message'
and help sell the benefits of the solution.
Web: http://www.synseal.co.uk
Web: http://www.cwgchoices.com
A
Gilt Edge Window with Deceuninck
Essex-based
fabricator Gilt Edge Windows has just announced that the company’s
new manufacturing partner will be Deceuninck.
Gilt
Edge's Managing Director, Laurence Griffiths, said of the partnership:
‘We chose Deceuninck because we felt the company’s commitment
to quality and service matched our own. It is a forward-thinking company
which has a great reputation for high quality, well-tested products and
we're delighted to be working with Deceuninck.’
Gilt Edge will be manufacturing two of Deceuninck's profile suites: the
2500 Chamfered and the 2800 Decorative. Together, they feel that the two
suites offer what their customers are looking for. The 2800 Decorative
remains popular because it's a design classic that suits all types of
home while the traditionally styled 2500 Chamfered is ideal for the conventional
window market.
The company will also be starting to use Deceuninck's online portal, SynergeBuild.
As Laurence Griffiths explains: ‘SynergeBuild was quite simply the
best product of its type I'd seen - it was hard to believe it came as
part of Deceuninck's impressive package. It will make ordering so much
easier and we are already seeing the benefits in other areas of the business
too.’
Laurence reports that the company is finding the market buoyant at the
moment. He puts this down to its personal and personable service. For
example, all staff undergo an extensive in-house training program to ensure
that every member of the team is customer-focused in everything they do.
Gilt Edge currently manufactures 250 frames a week largely for the domestic
market, but anticipates output doubling through an increase to its trade
customer base.
To meet the anticipated increase in demand, Gilt Edge has made considerable
investment in machinery plant to increase capacity. Laurence commented,
‘We are known for our high quality service and we have no intention
of losing that reputation as we grow. Our investments mean we will be
able to meet demand without increasing lead times.’
He concluded, ‘The support from Deceuninck, our investment and our
commitment to service all mean we have an excellent base from which to
develop high quality, high volume trade and domestic business. These are
exciting times for Gilt Edge and we are more than confident of success.’
Web: http://www.giltedgewindows.co.uk
Your
Industry Still Needs YOU! - Edgetech's VAT Campaign
The
'Reduce VAT' campaign is still going strong with 296 signatures on the
Number 10 online petition so far. But we still need more. To persuade
the Government to cut VAT on Energy Saving Recommended windows to 5%,
we need as many signatures as possible by 20th October.
Andy Jones, Managing Director of Edgetech urges individuals and organisations
to take 5 minutes out of busy working schedules to add their support:
‘We've said it before, but it's a drum we're not going to stop beating.
VAT reductions are already in place for insulation and other products
that have less impact on energy saving in the home than windows. Why is
there such disparity in the VAT rates of energy saving products?
‘As stated in the last budget, the Government has tentatively said
it will look into the issue of ESR windows, and in his new role as a PM
pushing environmental credentials, Brown may well up this in priority.
But we need to continue to state our case collectively. All you need to
do is visit http://petitions.pm.gov.uk/reduced-VAT
to add your name to the growing list. There are some notable omissions
from those who've signed - are you among them?
‘Earlier in the year we also reported on MP Mark Oaten's tabling
of an Early Day Motion (EDM 1268) to Government urging cross party political
support to reduce VAT. You can view it at on the following link:
http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=33036&SESSION=885
‘To date 50 MPs have added their names to the proposal for debate.
Thanks to all those who have written to their MPs so far and anyone still
yet to do so is welcome to call us for a copy of a template letter to
use if required.’
Andy Jones summarises: ‘These are the facts. If every home in the
UK installed C rated windows, or higher, carbon emissions could be reduced
by 12.8 million tonnes a year, and every year after. This is the equivalent
to removing 840,000 cars from the UK's roads every year. Getting ESR windows
into the lower VAT bracket to incentivise home owners can only be good
for the health of our environment and our industry.’
There will be more on the campaign with an opportunity to sign the petition
at the Edgetech Manufacturing Launch Open Day this Thursday and Friday.
Call Edgetech to reserve your place on 08700 566844 if you haven't already.
Bowlee
Park Housing Association Specifies Spectus
Highseal
Windows Ltd is fabricating thousands of Spectus' casement windows for
a five year refurbishment contract with Bowlee Park Housing Association
near Rochdale. Over £35million will be spent improving more than
1,200 properties of 25 different house types as part of the Government's
Decent Homes initiative.
David Maybank, Sales and Marketing Manager at Highseal Windows Ltd states:
‘Everyone is speaking of doom and gloom in the window market at the
moment. But replacing existing stock of PVC-U casement windows with more
attractive, more secure, and higher energy rated windows is still a big
opportunity. For this contract, the Spectus system was specified by Bowlee
Park, and installed by G & J Seddon, because of its looks, durability
and technical specification.
‘Spectus is a strong brand that is easy to work with,’ continues
David. ‘It has the most comprehensive and coherent, well-thought
out range in the industry, and this appeals to specifiers. It has something
for every market.’
Tel: 01625 420400
Web: http://www.spectus.co.uk
Five
Day Composite Doors from Force 8
Force
8 has now made a strategic investment in the region of £125,000,
on a state of the art CNC routing machine.
This combined with a large stock holding of all styles and colours of
door slabs, and its own delivery network, means that the company can deliver
composite doors in just five days.
‘This demonstrates once again our commitment to the marketplace and
improving our products and services,’ comments Dennis Sumner, managing
director of Force 8.
The new machine will enable Force 8 to manufacture up to 350 composite
doors per week. It users the latest technology to size, cut out for glazing
and furniture in just four minutes per door.
The new composite doors have all the appeal of a solid timber door, both
in looks and feel, but all the benefits and security of a normal PVCu
door. The doors feature embossed GRP and thermoplastic skins that have
the look and feel of a traditional timber door. They are composite moulded
and the thermo setting process means that they are unaffected by temperature
change. The styles and rails are made of a water resistant material and
are bonded to the skin, and therefore they will not warp, twist or crack.
Web: http://www.force8.info
New
Sales Force to be Reckoned With
Distributors,
specifiers, and installers of the Kestrel, BCE, Celuform and V-Cel brands
are set to get even more support from what is now one of the largest Commercial
and Contracts PVC-UE building product sales and support teams in the UK.
Structured regionally and falling under the experienced leadership of
Tony Crutcher, Sales and Marketing Director of Latium Building Products,
the new team numbers 16 with extra support behind the scenes across four
UK distribution facilities and a national training school.
Tony comments: ‘Having brought Celuform and V-Cel into the existing
Latium roofline stable with Kestrel and BCE, we looked seriously at how
we will continue to achieve added value for all our customers. We know
we have been getting lots right, as recent market statistics show. While
foam profile tonnage volume fell 8.3% over 2006, Kestrel and BCE's sales
were up 16%. In fact, BCE is one of the fastest growing brands in the
UK at the moment, and Kestrel remains the Installers' number one choice.
Kestrel and Celuform are also popular across customers working in the
specification and new build sectors, while BCE and V-Cel enjoy extensive
trade counter success. The environmental 100% calcium zinc skin and core
attributes of the Kestrel and BCE brands are catapulting them to top of
mind across all target audiences. To reflect our understanding of the
different brand followings, we have restructured our sales and specification
teams accordingly, adding some new names to the wealth of experience we
have already built over the last year.
‘Each of the brands will continue to invest in their own unique identities,
products and marketing support with the ultimate aim of ensuring that
customers across all sectors and all four brands will continue to get
greater representation and value for money.’
Web: http://www.latiumbp.co.uk
Sales
of L.B. Plastics' advanced conservatory roof system Sheerlite have increased
by 70% over the last 12 months and, as more window fabricators switch
to the system, 2007 is proving to be another strong year.
L.B.
Plastics developed Sheerlite to provide a roofing solution for those fabricators
who were struggling to achieve the right balance with their existing systems.
By listening closely to fabricators and building their feedback into the
development programme, L.B. Plastics has created a roof which offers 'excellent
visual appeal, top thermal performance ratings and optimum structural
integrity'. Features to allow easier installation were also built-in to
address the issues that installers were facing on a daily basis using
many different roof systems.
In addition to standard residential conservatories, the Sheerlite system
is also demonstrating a high degree of flexibility for fabricators and
installers who are commissioned for more unusual projects. With the support
of L.B. Plastics' technical team, fabricators have recently been able
to successfully create large-scale conservatories for commercial premises
and custom-styled conservatories for retail customers.
According to Mike Butterick, who heads the Sheerlite team at L.B. Plastics,
the roof system is becoming increasingly popular as fabricators respond
to the demand for high quality conservatories which score highly on sustainability.
‘Sheerlite has already proved itself in the marketplace in terms
of aesthetics, strength and installation with widespread use particularly
by those fabricators serving the newbuild sector. However, many Sheerlite
fabricators and installers are increasingly finding that their customers,
whether housebuilders or homeowners, are demanding a sustainable conservatory
and it is here where they are finding that they have some important USPs.
‘In common with our Sheerframe window and door systems, Sheerline
decking, fencing and ramps and Hometrim roofline products, Sheerlite is
a lead-free product, meaning that the PVC is manufactured using calcium-organic
stabilisers for total peace of mind. Sheerlite is also designed to deliver
a long service life with excellent thermal performance in-use when used
with an effective glass/gas combination.
Finally, when the conservatory does reach the end of its service life,
the Sheerlite roof, along with the PVC doors and windows which make up
the conservatory, can be recycled easily.’
For further information on the Sheerlite roof system, visit http://www.sheerlite.co.uk
or telephone the team direct on 01773 853074.
Celebrating
its 40th year in 2007, the Steel Window Association has a new President.
Matthew Hahn of Steel Window Service & Supplies takes over from John
Chamberlain of Rea Metal Windows.
New
SWA President, Matthew Hahn (front right) is congratulated by his predecessor
John Chamberlain while his industry colleagues look on
Speaking
at the SWA's AGM in Central London, Mr Hahn encouraged everyone in the
industry to look forward with confidence – ‘The modern steel
window is the natural choice for a wide range of buildings and architects
are increasingly specifying steel windows for their environmental and
aesthetic features.
‘We have a great story to tell and the 40th Anniversary of the Steel
Window Association gives the industry a platform to spread the message
that steel windows are very much alive and kicking.’
Tel: 020 7637 3571
Email: info@steel-window-association.co.uk
Rapid
Frame Moves into Top Gear
Rapid
Frame has now extended its portfolio of Formula One energy rated windows.
Working in conjunction with systems supplier aluplast, the Walsall based
specialist trade fabricator now has 6 windows registered with the British
Fenestration Rating Council and listed on the BFRC website.
The
Formula One Energy Rated window range has been developed in close co-operation
with aluplast and utilises the Ideal 70 fully featured window system.
The Formula One Energy Rated Window range now includes 2 'A' rated, 2
'B' rated and 2 'C' rated windows and will enable Rapid Frame customers
to offer consumers a complete energy rated window solution.
‘It is important for anyone looking to use the Window Energy Rating
scheme in their sales and marketing activities that they understand the
scheme and are able to present a coherent proposition based on window
energy ratings in their entirety rather than get too hung up on 'A' rated
windows alone,’ says Rapid Frame sales manager Barry Parker. ‘The
Formula One Energy Rated range provides a complete package for forward
thinking installers to offer to discerning consumers and give themselves
a winning edge in their marketplace’.
‘Our sales have increased dramatically as a result of our energy
rated products and our customers who are promoting our energy rated windows
are enjoying similar success. First time window replacement will decline
significantly in the next few years so it is crucial that we provide consumers
with compelling reasons to change their original replacement windows in
increasing numbers. The Formula One Energy Rated range with its good looks,
enhanced security and outstanding energy performance is the perfect product
offering for replacing the replacements.’
aluplast (UK) Limited
Tel: 01455 556771
Email: info@aluplastuk.com
Web: http://www.aluplastuk.com
Rapid Frame Limited
Tel: 01922 412333
Email: sarah.duncombe@rapidframe.co.uk
Web: http://www.rapidframe.co.uk
More
Wheels = More Deliveries!
Following
recent investment of over £300,000 in new machinery at its Mildenhall
plant, fabricator Tradelink has purchased two new lorries to add to the
existing fleet of branded delivery vehicles.
The additional investment comes as the company bucks the national trend
and sees steady growth in orders and enquires.
The latest additions to the fleet are already out on the road, sporting
the full Tradelink livery and transporting customer orders all over the
country.
‘Our expanding fleet is part of Tradelink's on time and in full promise,
which combines customer care with first-class order processing and delivery
scheduling,’ commented Jim Moody, Tradelink Managing Director. ‘With
a firm focus on speed, accuracy and quality, we aim to ensure that all
orders are processed, picked, packed and delivered with the ultimate efficiency
- and with no parts missing.’
The increase in orders and enquiries is as a direct result of the company's
expansion of its product range which has seen the launch of REHAU-Edge
to complement its standard REHAU S706 70mm range and the massive demand
for HeatGuard®, its range of high performance insulated glazed units
(IGU).
Miliband
Unveils CO2 Calculator
An online calculator that enables people to work out their carbon footprint
using government-recognised data and calculations was launched by Environment
Secretary David Miliband on June 20th.
Using the calculator, people can reliably calculate their carbon footprint
from home energy, appliances and transport, and choose to calculate either
their own personal footprint or their household's. The calculator then
develops a personalised action plan for users, with steps they can take
to cut their emissions.
Mr Miliband said:
'Around two thirds of people are already taking action to try to limit
climate change - but there is a lot of confusion about what people can
do and how effective those changes actually are.
'We want to cut through that confusion. This carbon calculator will help
people decide what they can do - and be sure it will make a difference.
Using it, people can work out the impact of their actions and, with the
tailored recommendations provided by the calculator, identify the best
way to reduce their footprint.
'This calculator is a real innovation - using up-to-date, authoritative
data and recognised calculation methods. As the calculator improves and
develops, I want it to become the gold standard for calculating CO2 emissions
from individuals and families.'
The Act on CO2 calculator can be found at http://www.direct.gov.uk/actonCO2,
and includes a range of features, including:
* The ability to customise to an individual or household;
* Three areas of lifestyle - home, electrical appliances, and personal
travel - brought together in one calculator;
* Advice tailored to the information people give the calculator, rather
than giving generic CO2-saving tips;
* Recommendations on reducing and avoiding energy waste, not just offsetting
it; and
* Reliable, transparent and regularly updated data.
The underlying software that runs the calculator's 'engine' will be made
freely available under 'open source' licences, to enable others wanting
to power their own calculators to use it, with their own branding.
Recent research commissioned by Defra has shown that 94% of people in
Britain now believe that the world's climate is changing and 57% believe
that we are already feeling the impacts of climate change. 66% of people
surveyed said they were already trying to take personal action to try
to limit climate change.
The calculator is a public 'trial' or beta version, and there are plans
to develop and improve it using feedback and ideas from users. Further
updates of the calculator will be released over the next few months with
the addition of more features to make it even easier for people to calculate
their carbon footprint.
Alcoa
Completes Soft-Alloy Joint Venture with Sapa
Alcoa announced on 8th June that it has completed the creation of its
soft-alloy extrusion joint venture with Sapa Group, part of Norwegian
conglomerate Orkla ASA.
The joint venture involves the contribution of Alcoa's soft-alloy extrusion
business into a joint venture company, Sapa AB, which will be the world's
largest aluminium profile company with annual sales of approximately $4.5
billion and 12,000 employees. The new company is majority owned and operated
by Sapa, based in Stockholm, Sweden.
The
new company will have a strong market position with a market share of
19 per cent in Europe and 27 per cent in North America. The combined net
sales for the new company was USD 4.2 billion in 2006. The new Sapa will
have approximately 12,000 employees.
The division of ownership in Sapa AB has provisionally been fixed at 54
per cent for Orkla and 46 per cent for Alcoa. In accordance with the agreement,
the final division of ownership interests will be calculated on the basis
of Sapa's and Alcoa's respective contributions to adjusted EBITDA for
the last twelve months (01.06.06 - 31.05.07). The final division of ownership
will be determined when audited figures for the period are available.
Orkla and Alcoa will have equal number of representatives on the Board
of Directors of Sapa AB. The board members will comprise Dag J Opedal
and Hilde Myrberg from Orkla, in addition to which Orkla has appointed
Anders G Carlberg as its third representative on the Board. Alcoa has
appointed Rudi Huber, Barbara Jeremiah and Paul Thomas. Dag J Opedal will
be elected as Chairman of the Board of Sapa AB.
'We are creating a global market leader in aluminium profiles that has
potential for further growth. The company will create value through close
cooperation with our customers and efficient operations. We are combining
the best from two organisations,' says Ole Enger, President and CEO of
Sapa.
Last November, Alcoa announced its plan to fold its soft-alloy business
into a joint venture company with Orkla, with the intention of eventually
offering an IPO of the combined entity. Alcoa has 22 soft-alloy extrusion
facilities in eight countries with 6,400 employees. Sapa Profiles has
18 facilities in 12 countries.
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.
Web: http://www.alcoa.com.
‘From
Mondeos to Mercedes’ with TimberWindows.com
Thirteen
months ago Kal Windows diversified with TimberWindows.com's engineered
timber windows because of saturation in the PVC-U market. Now timber makes
up 60% of its business and the average order value has increased from
£2,400 to £5,000.
Martin Stevens Managing Director of Kal Windows explains why he diversified
into timber: ‘I saw the demise of PVC-U windows and realised homeowners
were switching to timber. When I saw TimberWindows.com's products I thought:
wow! Selling TimberWindows.com's windows and doors has completely changed
my customer base - they're big spenders, on a different level. I've gone
from selling Mondeos to Mercedes! It's transformed my business.’
Tel: 0845 458 9181
Web: http://www.timberwindows.com
Housebuilders
Praise H Jarvis Ltd
Some
of the UK's top housebuilders have praised Sheerframe windowmaker H
Jarvis Ltd for its high quality product range, good customer
service and a solutions-focused approach, in a recent customer survey.
The survey was conducted amongst 100 customers and covered all areas of
the business from reception and customer care to delivery and installation.
Charles
Jarvis, (right) chairman of H Jarvis Ltd presents the £250 cash
prize and a H Jarvis mug to Simon Hale, senior surveyor at Taylor Woodrow
in Newcastle.
Dave
Glendinning, managing director of the Cleveland-based company, which employs
around 70 people, said: 'This is the first time that we have formally
surveyed our customers and we were delighted with the responses we received.
It is rewarding for the staff that their friendly and co-operative approach
and all their hard work is appreciated by customers.
'The comments were also constructive and we have already implemented some
improvements including the appointment of more customer service staff
and we are investing in the creation of more office space at our factory
to accommodate further additions to our personnel over the coming months.
'This was a very valuable exercise and we will be repeating it next year
to ensure that we continue to improve our high levels of service and performance.'
All participants were given H Jarvis mugs and one lucky winner Simon Hale,
senior surveyor at Taylor Woodrow in Newcastle, won the £250 cash
prize draw.
Specialising in manufacturing and installing windows and doors for the
newbuild sector, H Jarvis is one of the largest suppliers to the housebuilding
industry in the North of England and Scotland. The company fabricates
using the Sheerframe 6000 system from L.B. Plastics and also works in
the social housing, schools and hospitals sectors.
Web: http://www.hjarvis.co.uk
Alcan
Sells Vlissingen Smelter to Klesch
Alcan recently announced that it has reached an agreement in principle
with UK-based Klesch & Company Limited (Klesch) regarding the sale
of its Vlissingen smelter in the Netherlands. Alcan owns 85% of the smelter
and Hunter Douglas, which holds the remaining 15% interest, has confirmed
its intention to sell its interest to Klesch. Terms of the agreement were
not disclosed.
‘Since October 2006 we have been studying all alternatives for our
site in Vlissingen. Klesch is in a good position to offer new and sustainable
solutions, and I am glad that we have found a path forward to ensure a
future for the plant,’ said Michel Jacques, President and CEO, Alcan
Primary Metal Group. ‘This transaction clearly demonstrates Alcan's
ongoing commitment to value-based portfolio optimisation and is aligned
with our business strategy
and target of improving Alcan's competitive position on the cost curve,’
he added.
The final agreement is expected to be completed following the conclusion
of the consultation process with employee representatives in the Netherlands
and France. The transaction is anticipated to close in the summer of 2007.
The intended sale would include a commercial agreement that would ensure
ongoing billet and sheet ingot supply to Alcan's engineered product plants
and to Hunter Douglas as well as to third party customers.
Klesch & Company Limited is a private equity firm that owns a variety
of businesses. In recent years, Klesch has completed several significant
transactions; namely, Transamerica Maritime Containers (known as TAL International
Group) from Aegon N.V. group purchased for US$1.2 billion, as well as
eKabel Hessen from Deutsche Telekom for (euro)1.2 billion.
The Vlissingen aluminium plant employs approximately 700 people and has
a smelting production capacity of 200,000 tonnes, with a turnover of approximately
US$ 600 million in 2006. The site primarily manufactures aluminium billet
for the European engineered products market.
Web: http://www.alcan.com
Strong
First-Quarter Results for Hydro's Aluminium Business
Hydro reported strong results for the first quarter 2007, supported by
high aluminium prices and solid operational performance within both energy
and aluminium.
Divestment gains also contributed positively, while declining oil and
gas prices weighed on quarterly earnings.
Earnings before financial items and tax (EBIT) amounted to NOK 14,823
million in the first quarter, up from NOK 8,144 million in the fourth
quarter of 2006 and down from NOK 16,870 in the first quarter of 2006.
Net income rose to NOK 5,594 million from NOK 3,361 million in the previous
quarter and NOK 4,783 million in the same quarter last year. Net income
rose to NOK 5,594 million from NOK 3,361 million in the previous quarter
and NOK 4,783 million in the same quarter last year. Net income from the
quarter was positively affected by significantly lower tax rates than
in previous quarters, reflecting strong earnings from the lower-taxed
aluminium and international oil and gas businesses.
Aluminium Metal, Hydro's upstream aluminium business, reported its best-ever
quarterly result. Downstream operations, Aluminium Products, delivered
better earnings following significant rationalisation and improvement
efforts. Results for the first quarter included divestment gains of about
NOK 700 million. Favourable market conditions in Europe also contributed
to the results.
'I'm pleased that we are reporting improved earnings in both our main
aluminium areas, providing a solid basis for further growth as a global
aluminium company following the planned merger of our oil and gas activities
with Statoil,' said Hydro President and Chief Executive Officer Eivind
Reiten.
'We have maintained focus on day-to-day operations and excellent project
execution while completing the demerger of our oil and gas activities,
planning the integration with Statoil and preparing for the launch of
a 'new' Hydro. 'New' Hydro will start trading as an aluminium and power
share from 1st October," Reiten said.
Overall oil and gas production rose to 610,000 barrels of oil equivalents
(boe) per day in the first quarter, boosted by record output from Hydro's
international operations.
First-quarter production was 15,000 boe per day higher than in the fourth
quarter last year and at the same level as the first quarter a year ago.
Following revised output forecasts for partner-operated fields on the
Norwegian Continental Shelf, Hydro has reduced its 2007 oil and gas production
target by 3.3 percent to 585,000 boe per day.
Net cash provided by operating activities was NOK 14.8 billion for the
first quarter of 2007, compared with NOK 15.5 billion for first quarter
of 2006.
Hydro announced on May 21st an agreement to sell its polymers activities
to the UK-based chemicals company INEOS for approximately NOK 5.5 billion.
Hydro expects an after-tax gain of about NOK 400 million when the transaction
is completed, expected in the third quarter of 2007. The sale is subject
to approval by EU competition authorities and other regulatory bodies.
'The agreement with INEOS represents a good long-term industrial solution
for the polymers business and is in line with our strategy to divest non-core
activities and concentrate on developing our aluminium and power activities,'
Reiten said.
Investments amounted to NOK 3.8 billion for the first quarter, of which
79 percent related to oil and gas operations. The provision for current
and deferred taxes amounted to NOK 9,982 million for the first quarter
of 2007, about 64 percent of income before tax.
Aluminium Metal
EBIT for Aluminium Metal amounted to NOK 2,534 million for the quarter,
compared with NOK 899 million in the fourth quarter of 2006 and NOK 1,706
million in the first quarter of 2006. Results for the quarter were positively
influenced by continued high aluminium prices. However, increased raw
material prices partly offset the effect.
Realised aluminium prices measured in Norwegian kroner rose by 4 percent
in the first quarter of 2007 compared with the fourth quarter of 2006,
and by 12 percent compared with the first quarter of 2006. Hydro's primary
aluminium production, including its share of production from partly owned
companies, fell to 433,000 mt in the first quarter of 2007, down 4 percent
compared with both the fourth quarter and first quarter of 2006. The decline
from the fourth quarter of 2006 was due to the closure of the Stade smelter
in Germany and fewer production days during the quarter.
Unrealised gains and losses on operational hedge programmes amounted to
a positive effect of NOK 290 million in the first quarter of 2007, compared
to a negative effect of NOK 341 million in the fourth quarter of 2006.
Aluminium Metal's share of profit (loss) in equity accounted investments
(non-consolidated investees) increased to NOK 236 million in the first
quarter, compared with losses of NOK 12 million in the fourth quarter
of 2006 and was relatively unchanged compared with the first quarter of
2006.
The Qatalum aluminium project in Qatar, which is 50 percent owned by Hydro
and a major element in its growth strategy, is on track with a final decision
by the partners to proceed with the project expected around mid-summer
2007. A third expansion of the Alunorte alumina refinery in Brazil, in
which Hydro has a 34 percent share, started in 2006 and is targeting an
increased total annual production capacity of approximately 6.5 million
mt in 2009.
Aluminium Products
EBIT for Aluminium Products amounted to NOK 1,315 million in the first
quarter of 2007, an increase of roughly NOK 1.8 billion, compared with
the fourth quarter of 2006.
Results for the first quarter included a gain on the divestment of Hydro's
automotive castings business of NOK 667 million and positive metal effects
of NOK 149 million, while the fourth quarter of 2006 included costs related
to plant closures, rationalisation and fixed-asset impairments of about
NOK 700 million, as well as negative metal effects of NOK 164 million.
Compared with the first quarter of 2006, EBIT increased by about NOK 830
million as a result of the divestment gain, partly offset by lower positive
metal effects of NOK 211 million. EBIT for the first quarter of 2006 included
charges related to pension plan contributions in the UK of NOK 379 million.
Good underlying operating results for the first quarter of 2007 reflected
continued positive market developments in Europe, while developments in
the North American market remained weak, with a significant decline in
the US general extrusion market estimated at 20 percent compared to the
first quarter of 2006.
During the first quarter of 2007 Hydro completed the divestment of its
automotive casting operations, and its interest in Meridian Technologies
Inc, important steps in the restructuring of its aluminium products business
portfolio. In March 2007, Hydro finalised the closure of its magnesium
plant in Becancour, Canada, and is working towards divesting its magnesium
remelting operations in Germany and China.
Hydro is also currently evaluating alternative opportunities relating
to the divestment of its automotive structures business. Hydro plans to
continue to rationalise and improve the financial performance of its aluminium
products business, and expects additional charges relating to plant rationalisation
costs in 2007.
Outlook
Aluminium Metal
With the exception of China, key economic indicators continue to signal
a somewhat slower growth in the remaining part of 2007 compared with 2006
in all the major regions, particularly the US. European industrial growth
is expected to moderate during the second half of 2007. China stands out,
with an even stronger economic development in 2007 than in 2006 and continues
to drive aluminium industry fundamentals.
A combination of high LME prices and relatively stable short-term alumina
prices are apparently leading to high smelter capacity utilisation in
China and production there is expected to grow by more than 30 percent
for 2007 compared with 2006. Global production growth excluding China
is estimated at about 5.5 percent in 2007 compared with 2006.
China's consumption of primary aluminium is also growing. Global consumption
growth in 2007 is estimated at about 9 percent, dominated by China, which
is expected to contribute about 80 percent of the increase. Primary aluminium
consumption, excluding China, is expected to grow by about 2.5 percent
in 2007 compared with 2006. Consumption growth in Europe is expected to
slow to about 3 percent, while the US consumption is expected to decline
by about 1.5 percent.
European demand for casthouse products is expected to remain strong during
the second quarter but may weaken during the second half of 2007. The
market in the US may improve somewhat during the second half of the year
but is expected to remain relatively weak. The weakening US dollar is
expected to strengthen US exports and therefore have a negative impact
for European aluminium producers, although higher aluminium prices in
US dollars may compensate to some extent.
The behaviour of financial investors will continue to be an important
factor affecting the development of primary aluminium prices on the LME.
Aluminium Products
European markets for extruded and rolled products were relatively strong
at the start of 2007. Margins are expected to remain stable for both product
groups. Although shipment growth in 2007, especially for extruded products,
is expected to be lower than in 2006, the outlook is positive for the
second quarter.
In the US, orders for extruded aluminium products have declined significantly
during the first quarter compared to the first quarter of 2006. The US
economy shows signs of weakening and industrial production is expected
to show lower growth rates in 2007 than in 2006, with possibly a flat
or negative development.
The global light-vehicle market is expected to continue growing in 2007,
driven by emerging markets. The Western European market is expected to
be slightly down, while the US market is expected to continue the negative
developments seen in 2006. Margins are expected to remain under pressure.
Results for our aluminium products operations in the second quarter 2007
are expected to be influenced by continued favourable market conditions
in Europe as well as further progress on plant rationalisation programmes.
However, additional rationalisation expenses are also anticipated.
Web: http://www.hydro.com