News @ The GL@ZINE

In a series of groundbreaking agreements that set new parameters in supply partnerships within the PVCu industry, the Veka Group and Sash UK Ltd have agreed the terms of a multi-faceted, international business cooperation programme.

Believed to be the first of its type, and unique in its structure and scope within the glazing and related markets, long-term business partners Veka and Sash UK have agreed a number of supply contracts that will extend and formally cement a relationship that has proved successful for both companies over a period of almost 20 years.

An umbrella agreement sets out the framework of the partnership that encompasses three contracts in addition to future areas of collaboration. These extend to the creation of a joint venture company, product exclusivity, long-term volume supply agreements, and product development programmes.

In the first of these to be signed Sash USA Ltd - the company through which Sash has spearheaded its US conservatory and portal operations - has formed a 50-50 joint venture with Veka Inc., to sell and install conservatories and portal structures in the United States. The company, Blue Diamond Conservatories and Portals LLC, is the result of two years of planning, and will be headed by former Veka Inc. Vice President of Sales Ian Shearer, who becomes President of the new operation.

In the second facet of the agreement, made between Sash UK Ltd, Veka Inc., and Veka plc, Sash has been granted exclusivity in the UK and Ireland for the range of fencing and decking products produced by Veka in the US, and which was launched to acclaim by Sash earlier this year through its Fitrite Approved Installer programme.

Completing the deal will be a long term supply agreement for the UK market that sets out a programme of product development and cooperation, and supply contracts that reflect the established relationship between Veka and Sash UK's, as well as both companies' ambitious plans for market development and growth.

‘We are all very positive and optimistic,’ said David Ruzicka, Joint Managing Director of Sash UK Ltd. ‘Sash and Veka are proud of the unique relationship that we have developed over more than 19 years. We see these developments as a great opportunity for both companies. To say we are very pleased is a massive understatement.’

Sash UK joint MD Steve Morrell added: Fitrite is more than just decking and fencing profiles, it is a complete package and we felt it was important to secure exclusivity and a commitment to develop the product range. The conservatory and portal market in the US has huge potential and we now have the expertise to develop our business to its full.’Veka plc Sales and Marketing Director Mark Rogers says that the agreement reflects the unique relationship that Veka and Sash have enjoyed for most of both companies' existence: ‘The relationship between Veka and Sash is, I believe, one of the most successful and enduring of any within the UK glazing industry. More importantly however, I do not believe that the Veka Group has another customer quite like Sash, in its goals, its aspirations, and its approach to business, a statement I make in the knowledge that Veka has operations in almost every corner of the globe, including factories in 13 countries. The company’s drive to develop new markets and opportunities both in the UK and internationally is refreshing, and inspiring.’

Despite the tougher market throughout 2005, Total Glass says sales have remained strong throughout the year and remains optimistic about its prospects for 2006.

The Liverpool-based company reports steeper levels of growth over the nine months to September compared to the same period in 2004 - a factor the company largely attributes to the growing trend among smaller window companies towards ceasing manufacturing and buying in frames.

‘Ceasing manufacture has rapidly become the growth area of the industry as economy of scale now drives consumer prices. Consequently we have benefited from this trend by smaller window companies towards buying in frames. Outsourcing from an experienced and reliable major trade supplier is a far more profitable route for them, allowing them to concentrate on supply and installation,’ comments Managing Director Frank Deary.

Throughout 2005, Total Glass says it has gained an average of one new ex-manufacturing customer every two weeks as companies have struggled to maintain profit margins amid toughening trading conditions and rising raw material prices.

To cope with this rising demand, the company recently introduced a second afternoon/evening shift at its 100,000 sq ft modern production facilities where efficient working practices and significant investment in new machinery enable it to supply a comprehensive quality product range using the Profile 22 system at competitive prices. The February 2005 move to the multi-million pound Knowsley premises allowed space for on-going expansion, taking the company to new levels of growth.

‘Although it's been a tougher year, given the downturn in the market generally, we are pleased with our overall performance and expect further strong growth next year. We shall achieve this through our proactive approach to marketing which will continue to build our established trade supply side, alongside increased activity in the commercial sector through our Total Glass Commercial subsidiary, which serves the needs of this demanding marketplace,’ continues Frank.

‘We're simply doing a good job and supplying the right products, at the right price, to the quality standards our customers both demand and deserve,’ he adds.

For further information on Total Glass, contact Frank Deary or Paul Ierston on 0151 549 2339 or visit the website at http://www.totalglass.com.

Sales up 10% for Acorn Frames with Global Roof

Acorn Frames has added the Global roof system from Synseal Extrusions Ltd to make it a one stop shopping centre for its nationwide base of customers. Jaz Singh and Justin Bromley, Partners at Acorn Frames, comment: 'It's great for installers. We make sure they've got everything they need and deliver it straight to site.

'We fabricate 1000 frames a week and by adding Global our window sales have increased by 10%. Making top quality roofs means we get more orders for our windows and doors too. Installers like Global roof because it's easy to install and the quality is excellent. Global is quick to fabricate and the technical service Synseal provide to go with it is superb.'

Eurocell Building Plastics has recently introduced a special offers programme running throughout its 60 trade depots within the UK. Starting with an autumn special featuring savings on PVC-u door panels, prices start from £49 per panel, offer ends 21st December 2005.

Eurocell Building Plastics sells a wide range of door panels, available in a variety of colours and woodgrained finishes and suitable for installation with industry standard doorframes. The depots also stock associated products required for installation.

The offer is available in all depots, while stocks last, until 21st December 2005. Customers wishing to locate their nearest Eurcocell Building Plastics depot can do so by visiting Eurocell's website at http://www.eurocell.co.uk.

At a time when some PVC-U window system companies are pulling out of the UK, and others are merging brands, Kömmerling has committed to a long-term future here by developing new products specifically for the UK market.

Recently-appointed Brand Manager John Warburton (pictured) - who has been Technical Manager for seven years - says there is still a lot of potential at the high-quality end of the PVC-U market, which Kömmerling has always operated in.

John says that ‘knowing how to handle a contracting market not only keeps a brand at the leading edge, but is what sets survivors apart from the failures - and Kömmerling is well-placed to remain at the forefront: new products are currently being developed specifically for the UK to provide an even more complete service, and in an industry renowned for manufacturers frequently changing systems companies, many of Kömmerling's fabricators have been customers for 10, 15, 20, and even 25 years.’

In addition, parent company profine, has restructured in Germany to meet the changing markets, guaranteeing the future of the PVC-U extrusion plant in Pirmasens which supplies profile to Kömmerling in the UK.

This is giving added confidence to existing fabricators, and to those thinking of switching to Kömmerling in the wake of the recent upheaval throughout the industry.

The brand's three systems in the UK are the 58mm, the 70mm beveled, and what John Warburton calls their ‘much-copied third generation window’ the classically-curved Connoisseur ovolo. He firmly believes that the long-term future of the PVC-U industry in the UK rests with the top end of the market. ‘We're keeping faith with our principles of quality systems, a good range of products delivered on time every time, and full support services including marketing and Public Relations, along with technical back-up.’

Kömmerling does not get involved in low-price offers that ignore additional services and customer benefits, believing its full-service offering at the high quality end of the industry will open up new opportunities as the UK market becomes saturated with low-price, low quality windows. ‘Our biggest growth will come from Connoisseur, which is proving to be very strong amongst quality manufacturers who have the infrastructure to handle a fully-sculptured system, and the ability to sell a quality product to their customer base.

‘Where existing PVC-U replacement windows are now failing, it's because they were made with cheap frames, poor hardware and poor seals. Someone who bought windows like that 20 years ago will now think twice about buying at the lower end of the market again.’So what does all this mean for fabricators, installers, and the end-user customer? ‘Manufacturers know the profile will run consistently through their machines giving them zero problems in terms of fabrication, it is easy to work with and install, and our test reports give confidence that, once installed, it will last a considerably long time - well over a generation.

'Another aspect giving a clear market edge with many contractors and clients, particularly in the commercial/public sector, is the fact that since 2001 all Kömmerling PVC-U window systems in the UK are produced from profile extruded using Calcium-Zinc stabilisers instead of lead.

‘Individual window systems are right for individual sectors of the market. We've always focused on discerning customers at the top end of the market. Knowing the UK market as we do, that's what will see us through this downturn. For a brand like Kömmerling to merge with another brand would be totally destructive. We're totally committed as a separate brand identity to the UK - we have a strong future in a difficult market.’

While John's long-standing technical expertise with the brand remains available to fabricators under his new role, Colin White's position as group Technical Manager now encompasses Kömmerling.

Tessenderlo Group's sales for the first nine months of 2005 have risen 3.2 % compared with the same period of 2004, totalling 1,598.5 million EUR.

The recurrent operating profit (REBIT), which totalled 38.7 million EUR, compared with 66.0 million EUR for the same period of last year, decreased by 41.4 % for the first nine months of the year.

The net profit, groups share, totalled 25.1 million EUR for the first nine months of 2005, a decrease of 47.1 %.

The net cash flow, which amounted to 117.2 million EUR shows a decrease of 20.0 %.

Results for each Business Group
The results of the Chemicals Business Group dropped significantly in the third quarter. Reduced volumes are the source of this situation in Inorganic Chemicals. However, it is in the PVC Business Unit that the situation differs most markedly from the excellent third quarter 2004. Although there was some restoration of margins during the summer, it was not enough to regain the balance. However, this should be achievable in the final quarter of the year owing to new price increases, in spite of a recent very sharp rise in ethylene prices.

Only the US inorganic specialities activities record entirely satisfactory results in this Business Group.

In Specialities, the results remain behind at the end of September compared with 2004, but this delay has been reduced in the third quarter. Gelatin showed good performance owing to the stabilisation of raw material costs, which had been rising continuously for more than one year, and also owing to slightly improved selling prices.

Fine Chemicals also contributed to this improvement in the third quarter, in particular with regard to chlorinated derivatives of toluene, although they remain in a very difficult situation.

The results of Plastics Converting were still behind at the end of September compared with 2004, but, in the third quarter, reached levels comparable to those of last year, in particular for profiles.

Outlook
The results for the year remain heavily affected by the increase in oil prices and all the consequences thereof, as well as by the speed of this increase, which has not enabled its total impact to be passed on to the prices of the products.

This situation has, for the first time, created margin losses both in PVC and in Plastics Converting.

However, the results have also been affected by a decrease in profitability in the other Business Units of the group, which acted less as cyclical shock absorbers.

However, the fourth quarter should see some recovery, after the very bad third quarter, so that the total results for the year 2005 should improve with respect to the 47 % decrease recorded at the end of September.

In view of this situation, which also has structural causes, the group has decided to set up in 2006 a global plan aiming to restore its profitability. The goal of this plan is to improve the group's operating profit in a sustainable way by 30 million EUR as from 2007.

Web: http://www.tessenderlogroup.com

To meet the increasing market demand for Bekaert's advanced line of sputtering equipment, the company recently announced the opening of a new plant in Suzhou, China. Along with supplying Asian glass coaters with state-of-the-art sputter equipment, the site will also include customer service, maintenance and technical support personnel to serve the Asian market.

Bekaert presently holds a significant part of the market for rotatable magnetron sputtering equipment in China. The company is expanding to meet the needs of its industrial customers who are upgrading their facilities from planar equipment to Rotatable Magnetron Sputtering systems; this conversion reduces their total cost of ownership, while maintaining high quality glass coating. Continuing this trend, Bekaert has already generated three new orders from local area customers in the region for Bekaert end blocks, cathodes and TiOx and SiAl sputter targets.

Additionally, in order to support the rapid growth of the Asian glass and display market, Bekaert's Suzhou-based sputter products team will provide glass coaters throughout Asia with dedicated end block maintenance and technical support services.

Sputtering is a vacuum coating process and one of the core methods for depositing thin films on glass. Bekaert's technology allows a switch from planar to rotatable targets and offers lower cost of ownership through longer production runs, faster coating deposition and a more complete use of coating material. Bekaert has built up its experience in this field through its own sputter activity on plastic foil for window film and for industrial applications. Bekaert was the first to bring rotatable targets on the market and has developed the necessary sputter equipment to effectively use these targets on glass coating lines all over the world.

Bekaert is a multibillion-dollar technology company that is a specialist in advanced metal transformation and advanced material development and coatings. Bekaert has combined sales of € 2.7 billion and employs 16,400 people worldwide. The company is headquartered in Belgium and has facilities strategically located throughout the world in 120 countries.

Tel: + 32 9 381 61 61
Email: infobac@bekaert.com
Web: http://www.bekaert.com/bac

Sales of the conservatory roof glass reflex have now exceeded this year's expectations, with monthly sales of more than £300,000. 'This is quite some achievement considering the market is slower than previous years and consumer spending has dropped of a cliff, we have increased sales on average by more than 30% since last year,' said Sally at Roof-Maker Ltd.

Sally loves the response from new customers, 'since we started selling reflex two years ago every man and his dog has started to offer a conservatory roof glass. But customers prefer a low surface reflecting product over a dark mirror effect glass and with reflex that's what they get. Our delivery direct to site and unique glass shapes processing software eliminates costly mistakes.

'The glass units are now manufactured using warm edge super spacer bar technology which improves U-values and reduces sound insulation even further. The competitor products are still using the old fashioned metal spacer bars which cause condensation and reduced seal performance. Reflex sales expect to reach 5000m2 a month after Glassex 2006 as more and more fabricators and installers are discovering the 'easy order' and rapid delivery service that reflex distributors offer.'

For a product brochure contact Sally Hassle on 0116 269 6297

Email: roofmaker@btconnect.com

Perth-based window and door specialist, Sidey has invested yet again in its award-winning manufacturing facility and, in doing so, has increased its capacity to 72,000 frames per year.

The grass-roots approach to business focuses on careful control of every stage of the manufacturing process, but extends equally to delivery, installation and after sales care.

Thanks to successful contracts both large and small from the Borders to Orkney, the company says that the Sidey name is increasingly well known throughout the country and is associated with a very professional, yet personal, style of service. Despite its geographical spread and the growth over recent years, Sidey says that it retains the character of a small business in that it offers a degree of flexibility and responsiveness that would normally only be attributed to much smaller concerns.

Sidey has launched its new Trade, Newbuild and Commercial website. Designed specifically to meet customer needs with user friendly access, the latest industry news, product specification, virtual tour, brochure request options and exclusive member login, to mention but a few of the website features. ‘The site offers a comprehensive service to the trade, new build and commercial sectors. The aim of the site is to provide customers with a quick and easy way of accessing information that they might need.’ Says the company.

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

Proskills has been awarded its licence to become the new Sector Skills Council for the Process and Manufacturing sector. The licence was presented at a launch celebration held aboard HQS Wellington on the London Embankment, on 1st November, 2005, by Phil Hope, Parliamentary Under-Secretary of State for Skills.

Proskills, as part of the UK-wide Skills for Business network, works with employers, training providers and other stakeholders to address the skills and workforce development challenges affecting the coatings, extractives, glass, print and building products and refractories industries. This very diverse sector creates a multitude of products and services which are crucial to the success of the UK economy and the wellbeing of its citizens. Together, these industries employ almost half a million people in 27,000 companies producing commodities ranging from glass to bricks, from printing ink to construction materials, with a combined turnover of £29 billion.

(Left to right) Phil Hope, Parliamentary Under-Secretary of State for Skills, Stephen Falder, Proskills Chairman, Marketing Director, HMG Paints Ltd., Terry Watts, CEO Proskills

On awarding the licence, Phil Hope commented; ‘I am delighted to be here this afternoon to celebrate the launch of Proskills, the Sector Skills Council which will be taking a leading role in promoting skills and training for the process and manufacturing industries - sectors that form a vital part of the UK economy. The Sector Skills Councils are an integral part of the Government's strategy to improve productivity and help employers compete successfully in an increasingly global market. To achieve this objective, Proskills will be working closely with employers and training providers across the country to ensure that relevant training is available to meet current and future needs.’

Stephen Falder, Proskills Chairman, Marketing Director, HMG Paints Ltd., said; ‘The skills of a workforce are the most valuable assets of any business. Skills provide competitive advantage, quality and efficiency. A skilled team creates the ability to evolve business to meet new challenges and this in turn creates profit and security for the company and increased opportunity for the employees. By working through Proskills we in the process industries have a unique opportunity to influence Government strategy and pull together all the ingredients to make a step change in the skills of our workforce, to the benefit of all.’

Terry Watts, CEO of Proskills commented; ‘Raising skill levels, with the resulting improved productivity is, I believe, a pre-requisite for achieving business success today. We know from discussions we have had with employers up and down the country, that there is enormous grass roots support for Proskills and an understanding of the importance of its objectives. Proskills' exciting role now is to work with all the parties involved to create an infrastructure that will deliver the real and substantial improvement in our sector's skill base that we are all looking for.’

Proskills is one of the twenty-four Sector Skills Councils that together form the Skills for Business Network which is responsible for helping and encouraging employers to improve the skills levels of their employees to increase productivity and performance.

Tel: 0121 789 5100
Email: info@proskills.co.uk
Web: http://www.proskills.co.uk

Kömmerling fabricator Leodis Windows Limited has just upgraded to a more spacious 12,000 square foot factory near Leeds. The move is all part of a two-year corporate strategy of diversification and process streamlining for the firm.

Leodis was started in 1992 by joint shareholders and directors Malcolm Ambler and John Passmore. In the beginning the lion’s share of Leodis’ business came from the North of England trade market – it has retained its customer base and now its turnover split is 50/50 between trade and commercial orders. In the middle of 2004, Leodis started to burst out of its existing factory facility in Swillington and moved just two miles down the road to a larger facility in neighbouring Kippax.

Malcolm Ambler said, ‘We didn’t want to move location because that would’ve been inconvenient for local trade customers and existing staff. The factory’s well placed in Kippax – only five minutes from the M1 and M62, which is convenient for our customers and delivery schedules.

The additional 6,000 square feet of floor space has allowed more room for the installation of the latest generation of production machinery and the creation of a preparation space for custom-built conservatory roofs which has already increased productivity and capacity significantly. Leodis is now in full flow, its output has risen by 20% since moving to the new facility and currently produces 200 frames per week with a capacity of 600 plus. Leodis is awaiting installation of its £250,000 Stuga Cutting and Machining Centre, which will further streamline manufacturing processes - delivery is expected at the end of 2005.

Director, Malcolm Ambler explains Leodis’ diversification, ‘Conservatory roofs are a complementary market - Manufacturing custom-made K2 roofs provides our trade customers with a one-stop-shop, providing a conservatory roof which matches perfectly the ovolo design of the frames. Domestic customers who buy their Kömmerling Connoisseur windows will likely want a matching quality finish on their conservatory, adding value and saleability to their home.’

Leodis has been a Kömmerling fabricator since day one. It started off in 1992 with the 58mm system, which it still uses now for some new build orders, progressing to the GOLD and now fabricates the third generation Connoisseur profile. Leodis Commercial Director, Steve Quinn says, ‘A lot of fabricators sell a product on price and I think this is where they go wrong, because the product quality suffers - if you are selling a poor product then ultimately you are going to have problems and a chain of dissatisfied customers further down the line. Our Connoisseur windows and doors are based on top quality profile and fixtures, neat construction and a finish that guarantees customer satisfaction.’

Leodis is planning to further develop its share of the commercial and public sector contract market. Malcolm Ambler says, ‘The commercial market is proving to be a fast growing part of the business, we’re working proactively as well as receiving a lot of business through recommendation. I’m sure we’ll need another 6,000 extra square feet before too long.’

Through its Trelleborg Engineered Systems business area, Trelleborg has acquired the operations of Dunlop GRG Holdings Ltd. in Manchester, in the UK, a company with operations focusing on project-related products for protection and transport in demanding environments. The company is privately owned, has some 50 employees and annual sales of approximately SEK 70 M.

Dunlop GRG Holdings is market leading in the development and manufacture of large, specially adapted flexible containers for the protection and transportation of fluids, such as fuel and water tanks. These are used in marine operations, the defense industry and global rescue operations and disaster relief.

The operations will be integrated fully within Trelleborg Engineered Systems’ existing organisation. Synergies are expected to be generated through the possibility of utilising the business area’s global network for product marketing and through the processing of semi-manufactured goods within the Group.

The Trelleborg Engineered Systems business area had net sales of approximately SEK 4 billion in 2004 and has about 3,200 employees. Its head office is located in the town of Trelleborg, Sweden and production units are located in Australia, Canada, France, Germany, the Netherlands, Norway, Singapore, Sweden, the UK and the US. The business area has a distribution organisation for industrial supplies in North America.

Web: http://www.trelleborg.com

Nine-Month Figures: Linde Increases its Earning Power and Refines its Forecast

In the first nine months of fiscal 2005, the technology group Linde achieved increases in sales and operating profit (EBITA) and refined its forecast for the whole year. 'Our performance is self-evident' said Professor Dr. Wolfgang Reitzle, President of the Executive Board of Linde AG. 'As a group, we have become more effective and productive. Therefore, we have created the conditions necessary to continue with the successful implementation of our strategy, which is designed to achieve sustainable income-related growth and to realise our ambitious target returns.'

In the nine months to September 30th, Linde achieved a 7.8 percent increase in Group sales to 6.833 billion euros (2004: 6.337 billion euros), based on comparable prior year figures*. While sales outside Germany rose 8.9 percent to 5.435 billion euros (2004: 4.991 billion euros), sales within Germany showed an increase of 3.9 percent to 1.398 billion euros (2004: 1.346 billion euros). Incoming orders of 7.903 billion euros (2004: 6.663 billion euros) were also higher, 18.6 percent above those for the same period in 2004.

Linde's earnings also continued to improve in terms of all the performance indicators. Group EBITA rose in the first nine months of the year to 590 million euros. Compared with the prior year figure of 502 million euros, this represents an increase of 17.5 percent. Earnings before taxes on income (EBT) rose 25.3 percent to 496 million euros (2004: 396 million euros), while net income of 311 million euros was 22.4 percent higher than the figure in 2004 of 254 million euros. The figure for earnings per share (EPS) at the end of September was 2.60 euros (2004: 2.13 euros).

Based on comparable prior year figures, Linde now anticipates for the whole year 2005 an improvement in Group earnings of at least 10 percent over the figures for 2004 and an increase in Group sales.

All the business segments contributed to the overall positive business trends in the first nine months of 2005.

Sales in the Linde Gas division increased in the first nine months of the year by 10.8 percent to 3.278 billion euros (2004: 2.958 billion euros). During the same period, EBITA rose 11.9 percent to 519 million euros (2004: 464 million euros). This improvement in earnings was underpinned by the optimisation programme, which was implemented as planned.

All the product segments in the gases business saw growth during the reporting period. The highest growth rate was achieved by the on-site segment, which supplies industrial gases to major industrial customers from plants situated directly on the user's site. This segment experienced a 21.2 percent increase in sales to 716 million euros (2004: 591 million euros). Sales in the bulk segment rose 8.8 percent in comparison with the prior year period to 910 million euros (2004: 836 million euros), while the cylinder business saw a 4.5 percent increase in sales to 1.231 billion euros (2004: 1.178 billion euros).

Against a background of positive business trends in the first nine months of the year and sustained market growth, the Linde Gas division continues to anticipate that sales and operating profit for the whole of fiscal 2005 will be up on the previous year.

There have not been any significant changes in market conditions in the Material Handling business segment in the course of the year. Worldwide demand for industrial trucks has risen overall, without achieving the same growth momentum as in the previous year.

Given this situation, Linde managed to continue its upward trend and increased sales in the nine months to September 2005 by 5.5 percent to 2.545 billion euros (2004: 2.413 billion euros). Incoming orders rose 7.7 percent to 2.724 billion euros (2004: 2.529 billion euros). As a result of the measures taken to achieve sustainable increases in efficiency and profitability, EBITA improved by 14.7 percent over the previous year to 125 million euros (2004: 109 million euros).

At the same time, in the past few months, the Group has taken important steps to ensure that the Material Handling business segment achieves its medium-term sales targets and target returns. The launch of a second forklift truck brand in the Chinese growth market has, for example, been a success.

Within the framework of the Growth and Operational Excellence (GO) optimisation programme, the company also concluded works agreements in July and August for the German sites producing the Linde and STILL brands, which will enhance flexibility and cost efficiency at the individual locations and significantly improve earning power. The agreements will take effect gradually and will generate total annual euro cost savings in the double-digit millions.

Linde confirms its existing forecast for the whole year 2005 for the Material Handling business segment and anticipates an increase in sales and a significant improvement in operating profit.

Linde is an international technology group, which occupies leading market positions in each of its two business segments Gas and Engineering and Material Handling. With some 41,500 employees worldwide, Linde achieved an annual turnover of around 9 billion euros in the 2004 fiscal year.

* Prior year figures adjusted for the disposal of the Refrigeration business segment and for the amortisation of goodwill

‘Always Look on the Bright Side of Life...’

In an industry full of ups and downs Sash UK Ltd says that it has enjoyed continuous growth of up to 15% year on year over the last eight years. So what makes Sash so different?

By working closely with its customer base Sash has found that in an industry dominated by price, the requirement for a premium quality product and dedicated service is still very prevalent.

From Sash's point of view it is very encouraging for the future of both the company and the industry. In recent months, industry news has been so full of doom and gloom. However David Ruzicka, Joint Managing Director at Sash offers this advice; ‘although it is important to understand the market, companies shouldn't let it get them down’.

David draws his optimism from the fact that, despite the turbulent environment, Sash's work in the commercial sector looks set to drive the company’s market share up over the next three years, with a potential £20 million turnover from commercial work alone.

However, the commercial market has also proven to be pretty tough at the moment. But Commercial Director, Brian Oxley, is confident that Sash is more than capable of competing. ‘To further boost our work in the social housing sector, Sash is bolstering the commercial team with the addition of a Southern and Scottish Commercial Business Development Advisor. This will enable Sash to deliver an even more dedicated service that looks after the needs of the individual client,’ said Brian.

The reality for most however is that trade window and door sales, once the bread and butter business of most PVCu fabricators, has become the most competitive, hard and unfair of all the sectors in the industry. With no real, fixed standard specification the customer tends to buy what they perceive as being the cheapest.
Before long, however, the longevity of the product (or lack of it) will mean that the familiar saying, 'buy cheap, buy twice', becomes all too true to the end user. Only then will the real value of a premium quality product become fully recognised. But until that time, particularly for companies like Sash, it will be hard to retain market share and the company envisages a further decline in that sector.

Conservatory experts, on the other hand, predict a boom in their sector over the next five years, despite it currently suffering in the same way as windows and doors. ‘This is due to an industry-wide devaluation of a product that should be regarded as a luxury item but which has effectively been reduced to nothing more than a 'tin of beans'’, observes David Ruzicka. ‘Classic conservatory business will be a hard place to compete for this reason. But by developing technology and a skilled workforce Sash expect to see slight growth in this area,’ he added. To maintain its position Sash has brought on board three new business development advisors, with further appointments proposed. This will help the company to compete in the difficult trade sector.

On a much lighter note, Sash has enjoyed success in the highly specialised portal market. But the company is not getting too complacent, as there is still a lot to do and potentially Sash could become a victim of its own success with sales outstripping the infrastructure currently in place. So the company is looking to bolster portal sales and technology over the coming months with future expansion already in the pipeline to help accommodate demand.

Sash portals have also enjoyed significant success in the US and David believes this is largely to do with the experienced people he has on his team, ‘Recent successes would certainly suggest that Sash is fast becoming a world leader in portal design and installation. I realise this is a big statement, but in the past three months the company has had enquiries from the US, Romania, Australia and Cypress, to name a few. This could be attributed to the success Sash has had in the US but is also due to the unique service Sash offers which has made portal structures more feasible to companies who may have dismissed it as a possibility before.

‘And there are many more opportunities opening to Sash too. Admittedly, the past five years have been a learning curve for Sash, as is the case with new business ventures. But now the company is in a position where it can look forward to market domination. An example of this is Sash's new range of decking and fencing.’

Joint Managing Director, Stephen Morrell, certainly had high hopes for the range right from the start but even he could not have predicted the sheer enthusiasm of the response. ‘In 40 years of Sash, never has a product caused so much excitement. The fencing and decking should be fully operational in the next three months and Sash will be recruiting as this area of the business develops, especially if it continues to do so at the rate in which it has done up to this point,’ said Stephen.

Overall it has been a tough three years but David Ruzicka is adamant that Sash is well placed to compete. ‘There's no better time to expand than in a recession as there's less competition,’ explains David. ‘Thanks to the great team we have here and the bright new stars that have joined us, we will soon achieve our goal of a £30 plus million turnover.'

There has been no end to our growth. It feels like the longest marathon in the world. After the move to the new factory, Stephen and I really thought it was the pinnacle of Sash's achievement. However more recently the company has been re-energised with fresh challenges, new market places and new people. The past few years have been about team building and we now have some of the best people in the industry on board,’ David added.

Sash is now primed for a major push on all fronts. And the secret to the company’s success? According to David it is ‘our ability to deal with whatever is thrown at us, learn from our mistakes and a continued belief in success’. Over its 40 years Sash has shown itself to be quick to adjust to the changing industry, quick to understand and react to the changes and above all, quick to capitalise on the opportunities a changing market can offer to those willing to see it. Everyday at Sash brings fresh challenges; ‘we never get bored,’ says David.

Tel: 01226 715619
Web: http://www.sashuk.com

Hydro's income from continuing operations for the third quarter of 2005 amounted to NOK 4.183 million (NOK 16.60 per share), compared to NOK 2.480 million (NOK 9.80 per share) for the third quarter of 2004. For the first nine months of 2005, Hydro's income from continuing operations amounted to NOK 11.453 million (NOK 45.60 per share), compared to NOK 7.839 million (NOK 30.80 per share) in the first nine months of 2004.

Operating income for the third quarter of 2005 amounted to NOK 12.973 million, compared to NOK 11.255 million in the second quarter of 2005 and NOK 8.047 million in the third quarter of 2004. The strong operating results reflected the continuing high oil and gas prices and strong operational performance. Operating income for the first nine months of the year amounted to NOK 35.982 million, compared to NOK 25.613 million in the first nine months of 2004.

'Hydro's third-quarter results are the company's best quarterly results ever. The continued high oil price is the main reason for the improvement. We have taken important steps to strengthen the foundation for future oil and gas production through successful exploration wells in Norway and internationally as well as the agreement to acquire the US company, Spinnaker Exploration. The acquisition, which we expect to conclude in the fourth quarter, will significantly enhance Hydro's position in the Gulf of Mexico,' says Eivind Reiten, Hydro's President and CEO.

'In Aluminium, metal production has increased and metal prices are higher, while market conditions downstream remain difficult. Higher energy and raw material prices represent increasing challenges to our efforts to improve profitability in Hydro's aluminium business,' says Reiten.

Aluminium's operating income amounted to NOK 842 million for the third quarter of 2005, decreasing by NOK 16 million from the third quarter of 2004. Primary metal production increased by 5 percent to 461,000 tonnes, compared with the third quarter of 2004. The increase resulted primarily from the Sunndal expansion in Norway and the Alouette expansion in Canada. Compared with the third quarter of 2004, Hydro's realised aluminium price in US dollars increased about 6 percent to US dollar 1,770 per tonne. However, realised prices in Norwegian kroner decreased by 2 percent. Results for the quarter were also influenced by unrealized losses on London Metal Exchange (LME) contracts amounting to NOK 231 million, compared with losses of NOK 286 million for the third quarter of 2004.

Outlook
Oil prices are expected to remain high for the remainder of 2005. Volatility in the gas and power markets is expected to continue and could result in substantial unrealised gains and losses in future quarters. There is significant uncertainty related to production from certain partner-operated fields during the fourth quarter of 2005 due to delayed build-up of production after shut-downs and delayed start-up of new fields. Hydro has revised its production target for 2005 downward by 10,000 boe per day to 565,000 boe per day. The partner-operated Urd and Kristin fields are expected to start production in the fourth quarter of 2005. Planned maintenance shutdowns will have a minor impact on oil production levels in the fourth quarter of 2005.

In the middle of October, aluminium (three-month LME) was trading at US dollar 1,900 - 1,950 per tonne following a period of fluctuating prices, but with an increasing trend. Upstream market fundamentals remain favourable for the fourth quarter. Realised effects of the Sunndal hedge programme are expected to be slightly negative in the fourth quarter of 2005 due to losses on the related LME contracts and limited positive contribution on the related US dollar forward contracts.
Realised effects of this programme had a positive effect on year to date results amounting to NOK 274 million. Global economic growth is expected to continue in 2005 but at a lower rate than the previous year. Economic developments in Western Europe are expected to be flat. Downstream European market developments are expected to remain relatively weak while US downstream market developments are expected to be positive, but with lower growth rates.

While the high oil and gas prices are expected to continue contributing favourably to Hydro's results, the impact on power prices represents an increasing challenge to Hydro's aluminium activities particularly in continental Europe.

Third quarter 2005
Earnings from non-consolidated investees amounted to NOK 237 million in the third quarter of 2005, compared to NOK 287 million in the third quarter of 2004. For the first nine months of 2005, earnings from non-consolidated investees were NOK 696 million, compared to NOK 539 million in the corresponding period of the previous year. The increase resulted primarily from strong operating results in Alunorte, the Brazilian alumina refinery, and improved operating results from Hydro's S¯ral smelter located in Norway. In addition, the first nine months of 2005 included currency gains relating to Alunorte amounting to NOK 184 million, compared to a net currency loss of NOK 7 million in the same period of 2004. Charges relating to the planned closure of the Hamburger Aluminium Werk smelter in Germany had a negative impact for the first nine months of 2005 amounting to NOK 149 million.

Net financial income for the third quarter of 2005 amounted to NOK 157 million, compared with NOK 307 million for the third quarter of 2004. The current quarter included a net foreign currency loss of NOK 46 million, while the third quarter of 2004 included a net currency gain amounting to NOK 424 million. Net interest cost was lower in the third quarter of 2005 than in the corresponding quarter of 2004.

Other income was nil for both the current and prior year third quarter. For the first nine months of 2005, other income amounted to NOK 233 million, compared to NOK 110 million for the corresponding period of the previous year. In January 2004, Hydro divested 80.1 percent of its shares in Pronova Biocare, resulting in a gain of NOK 110 million. On 15 April 2005, Hydro agreed to sell its remaining interest in Pronova Biocare for NOK 275 million, recognising a gain on the sale amounting to NOK 233 million. The sale was completed in the second quarter of 2005.

Income tax expense for the first nine months of 2005 amounted to NOK 23.895 million, compared to NOK 17,474 million for the corresponding period of 2004. This represents 67 percent and 69 percent of income from continuing operations before tax, respectively.

Cash flow from operations for the first nine months of the year amounted to NOK 25.4 billion, compared to NOK 24.4 billion in the corresponding period of 2004.
Investments amounted to NOK 4.2 billion for the third quarter of 2005. Roughly 80 percent of the amount invested related to oil and gas operations.