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Decuninck Turnover Increases in 2004 by 24% to 582m Euros

Group Deceuninck achieved a turnover of 582 million euros in 2004. This represents an increase of 24% compared to the previous financial year. The negative impact of the currency on the turnover amounts to 2.1% on an annual basis. Turnover for the fourth quarter amounted to 140.8 million euros while Internal volume increased by 5.5% on an annual basis.

Western Europe
Halfway through the fourth quarter Deceuninck recorded a glimmer of recovery in all regions in Western Europe. This proved to be of short duration however, and it faded towards the end of the year. On a yearly basis the turnover has grown, which was particularly due to good performances in Belgium, France and Spaln. Despite the disappointing general economic situation Thyssen Polymer managed to maintain the turnover at the same level as in 2003 on its German home market. Hereby the whole year 2003 is assumed (in which Thyssen was consolidated for six months).

New member states of the EU
In the new European member states the trend of the third quarter continued, but at two different speeds. The impact of the rise of the VAT rate in Poland since its entry into the European Union on May 1st was also clearly noticeable during the last quarter. On a yearly basis local currency sales in Poland have stagnated. In other new member states however -especially in the Czech Republic, Hungary and Slovakia - a rise of more than 30% was recorded.

United States
In the United States, the clearly visible recovery of the growth in November could not be confirmed in December. On a yearly basis there was a slight growth of the turnover in USD of Deceuninck North America. The negative impact of the dollar rate on the turnover in the United States resulted however in a decrease of 8% in euros.

Turkey
The Deceuninck Ege Profil division in Izmir once again finished up with a substantial growth in the fourth quarter. The investment climate in Turkey continues to be positive now that Europe has given the go-ahead for entry discussions. On a yearly basis the turnover in Turkey increased by over 50% in euros.

At the end of November the take-over contract of Winsa was concluded. With this the tumover of Winsa was consolidated as from 1st December

Strategic Projects

New geographical areas: Russia
The aimed turnover of 15 million euros was realised which means that the 'Russia project' is still on course.

In November Deceuninck Russia was registered as a legal entity. At the end of 2004 more than 200 window manufacturers were registered clients. The sales organisation with its main office in Moscow and sales outlets in Sint-Petersburg, Ekaterinenburg, Novosibirsk, Rostov and Samara is finalised. The sales and support teams have been formed and are in full operation on the market. There are continuing plans to start up a new local production in Moscow.

Zendow & Elite
The launching of the new Zendow window concept is progressing according to plan. The introduction was accomplished in France and the Czech Republic in 2004. As planned, the other countries were started up in 2004 so that the changeover programme cauld be accomplished early in 2006.

In 2005 Thyssen will start a similar platform project under the name Elite.

Wood composite
In the United States the sale of wood composite decking has got off to a good start. In the meantime Deceuninck has successfully managed to radically adjust the market prices in line with the high increase in prices of raw materials. The strong growth in the demand on the market reinforces Deceuninck's plans to double its production capacity in Monroe (Ohio) this year.

Thyssen Polymer
The integration and synergy projects such as the complexity reduction programme are on schedule.

Evolution of prices of raw materials in the fourth quarter

During the fourth quarter the price index of raw materials (KI) rose by 7% compared to the previous quarter, so that the total rise on an annual basis amounts to nearly 30%. The prices of resin seem to have reached their peak now. No further rises are expected during the coming months, but the prices will probably stagnate on a high level.

Sales prices

Meanwhile the second price increase is gradually introduced in the different regions with a view to concluding it around February. The introduction of the flrst price increase is progressing more slowly than expected, particularly in Poland. Here too a substantial increase in selling prices were implemented as of January 1st.

'Despite the difficult market situation in 2004, Deceuninck continued without abatement its investments in the new strategic projects. We can already submit the initial results and the first signals for 2005 continue to be promising. In fact this year we are expecting another considerable increase in the turnover. A number of streamlining programmes are currently running in the United States, the United Kingdom and Poland. As we mentioned before, all these projects have an impact on the results for 2004. However, they should allow for a significant improvement of the result at the end of 2005,' says Clement De Meersman, Deceuninck's CEO.

G 05 Awards Date Announced

Following the hugely successful reintroduction of the G-Awards to the industry calendar, the date for the G 05 Awards Presentation Gala Dinner has been announced. The event will take place at the Birmingham Hilton Metropole, NEC Complex on June 10th 2005 and will be held once more in conjunction with the GGF Annual Convention.

Event sponsors already include Ultraframe, Promac Group, Glass and Glazing Federation, WHS Halo, FENSA, Wendland Roof Solutions, and Pilkington Glass, with further sponsors to be announced in the near future.

Further detailed information on categories, entry criteria and judging will be available in next weeks issue of The Gl@zine, but should you require any further information on sponsorship packages feel free to contact Tony Higgin on tony@theglazine.com

Synseal Extrusions Ltd, now the third largest systems company in the market, is launching SynerJy, its stunning new window and door suite at Glassex. Nick Dutton, Sales and Marketing Director, explains the design process and the benefits of the new system: 'Because conservatories are so important to fabricators, we believe that window systems that do not take conservatories into account are not really viable. SynerJy is the first complete 4th generation system that seamlessly integrates windows, doors, patios and conservatories.

'Adopting this fundamentally different approach led to greater balance in the overall design, and a number of delightful surprises. Synergy, put simply, is where the combined effect of many benefits working together exceeds the sum of their individual effects and it summed up the new system rather neatly. So we called it SynerJy and simply changed the ‘g’ to a ‘j’ to highlight one of the key benefits: a single leg, or J bead, that just knocks in thus simplifying installation.

'We asked our customers for their wish list at the start of the design process. The result is a fully sculptured, pre-gasketed, 70mm system with an elegant but simple shape carried through to every section, including door profiles. The casement sash features a full depth eurogroove throughout. Creating an identical shape and size upstand on the profile to that of the bead was initially to create neater sightlines.

However, after further development we found that this simple feature paved the way for other benefits - the first being equal V notches on reverse butt weld joints instead of ‘stepped’ V features. It also means SynerJy fabricators need only one set of welding blocks. The simple and complementary upstand detail means all sections can be produced from the same blocks. This saves fabrication time because blocks don’t have to be changed and fabricators don’t need to tie up capital in extra welding machinery specific to certain profiles or even factory layout.

'It’s not easy designing something this simple. Complex is easy. You just add features higgledy-piggledy, and leave the unresolved design problems to someone else. The cost and compromises emerge in fabrication, installation and selling, which are that much harder. They invariably affect the look of the window too. Those who have seen SynerJy simply say: ‘It’s stunning.’

http://www.synerjyprofile.co.uk

Glassex 2005 Will Feature New Companies

In its 25th anniversary year, Glassex 2005 (13th – 16th March NEC Birmingham) will prove to be just as true a barometer of industry trends as it always has been, says show organiser EMAP Maclaren. Perhaps the biggest representation of the continuing importance of the event is the number of new faces wanting to take advantage of the opportunities Glassex has to offer.

A large proportion of companies exhibiting at Glassex 2005 will be doing so for the first time ever, making this year’s event a must-visit for fabricators, installers and glazing specifiers wanting to find out about the very latest product innovations and solutions. One such company is Essex based Micro Jacking Systems Ltd, which aims to snare the attention of the market with its load bearing support solutions. Stephen Palmer, who heads up the company, explains:

'Both FENSA and many public sector specifiers now insist upon solid load bearing support for bay windows and conservatories, with demand increasing for long term structural guarantees. We want to encourage people to move away from old practices and look into our jack pole systems, which have been tested to load up to 14 tons and fit most major PVC-u systems. We have chosen Glassex because, whilst we have advertised in publications, we feel that we can reach a much wider base within the industry at the event. That way, potential users can also see the product for themselves and discuss their requirements with us.'

Also new to Glassex this year is Balance UK Ltd, formed in April 2001 following the management buyout of Garador Ltd’s sash balance business. In the three and a half years under the new ownership structure, the company claims that its lead times have reduced significantly, the product range has grown substantially and turnover has increased by almost 40%. All balances incorporate stainless steel spiral rods and range from lightweight 'D-type' balances which can be adjusted by screwdriver to fully pre-tensioned balances providing maximum assisted lift.

Balance UK stainless steel spiral rods and range from lightweight “D-type” balances which can be adjusted by screwdriver to fully pre-tensioned balances providing maximum assisted lift.

Another new company that looks forward to attracting Glassex visitors is Spraylat International Ltd. The Northamptonshire based company plans to introduce a new system of door and window protection that it says will save the glazing industry hours of clean-down time and potential damage. Glasstrip UV Resist is a non hazardous dispersion, which is applied by either the window fabricator or on site by spray or roller and dries to form a skin tight tough plastic film. The company says that the film stays in place during manufacture, transport, fitting and construction and is simply peeled off by hand prior to handover.

Spraylat International plans to introduce a new system of door and window protection that will save the glazing industry hours of clean-down time and potential damage.

Glazesafe Ltd dedicates itself to providing innovative apparatus and tools to help installers both avoid injury and maximise profits. Its premier appearance at Glassex will focus on Sashmate, a special piece of apparatus that is said increase speed and efficiency during window repairs. It has been designed to eliminate the need for ladders or scaffolding whilst carrying out friction stay, double glazed unit and espagnolette repairs on top hung windows as it allows these repairs to be completed from the inside.

Established for five years, French company WINDOW la fenêtre ronde, based in Brittany, claims to be France’s number one specialist in aluminium profile bending, arched door and window frames and raked angled head frames. The company offers a variety of fixed and opening circular windows, available in non-thermal and thermally broken systems.

Many other new companies will also be bringing fresh ideas and concepts to Glassex 2005, including conservatory manufacturer County Systems Ltd, underfloor heating specialists Allbrite UK, Maitland Conservatory Roofs, Balconi Aluminium, prototype electric blind systems manufacturer Pulse Line Systems and French specialised door glass manufacturer Delta Intertrad.

Glassex 2005 will take place from 13 – 16 March inclusive in Halls 18, 19 & 20 of the NEC, Birmingham. For further details on the show, visit www.glassex.com.

Alumet Systems (UK) Acquires Avon Manufacturing

One of Warwickshire's oldest manufacturing companies as been acquired by multi-award winning company Alumet Systems (UK) Ltd.

Formerly of Montague Road, Warwick, Avon Manufacturing Ltd will continue trading as a division of Alumet Systems from the company's new premises at Avon House, Southam, adjacent to Alumet's head office at Senator House.

Managing Director Gary Summers stated 'The acquisition of Avon Manufacturing will further enhance the reputation of both companies and provide more jobs for the local community.'

Avon will continue to fabricate the Avon Dry-Wall Beam, winner of The Queens Award for Enterprise 2004, currently being installed at Alumet's largest project to date, the £2.6 million development at St. James' Hospital, Leeds.

Glaverbel Increases its Stake in Bor Glassworks, the Largest Glassmaker in Russia

The Glaverbel Group recently raised its stake in Bor Glassworks from 44% to 83%. Bor Glassworks is the largest glass producer in Russia, based in the Nizhny Novgorod region. The operation was carried out through the acquisition of 849,064 ordinary shares in Bor Glassworks held by the European Bank for Reconstruction and Development (EBRD) and the same number of ordinary shares held by the International Finance Corporation (IFC, member of the World Bank Group).

In late 1997 Glaverbel became the first western glass producer to invest in Russia, by acquiring a 25% stake in Bor Glassworks. In order to share the risk of the investment, Glaverbel carried out this operation at the head of a consortium of investors including the EBRD and IFC, which ultimately controlled more than 75% of Bor Glassworks. Since then, in parallel with the increase in its stake in Bor Glassworks, the Glaverbel Group has launched a vast programme of modernisation of the Bor organisation and production facilities, investing more than USD 100 million.

'This latest move by Glaverbel reinforces the Group's position as the largest flat glass producer on the emerging markets of central and eastern Europe, which are now growing rapidly.' says the company.

Re-Named Alfas goes for UK Growth

The illbruck name is re-entering the UK building materials sector with the re-naming of the foam tapes, movement joints and technical sealants and adhesives business of Alfas Group.

From March the company will operate as illbruck Sealant Systems UK Limited. The move follows illbruck’s acquisition of Alfas Group in 2003 and is in line with the continuing integration of the UK activities within the international network of sealants companies established by illbruck throughout Europe.

Although the company name is changing, the existing well known and successful brands, Alfas, Compriband and Webbseal are being retained. These will continue to be central to illbruck’s marketing strategy for the future and will retain a valuable link to the past, for those customers who have used the products for many years.

As part of the new arrangements the company will also be appointing a new Chief Executive for the UK business. The new postholder will take overall responsibility for day-to-day operations in the UK with responsibility to grow the UK business to £20m over the next five years.

The group has recently restructured into two divisions. The TechSpec Division based at Washington, Tyne & Wear is responsible for manufacture and sale of glazing tapes and expansion joints destined for OEMs (original equipment manufacturers), specialist distributors and specifiers such as architects and building engineers.

The Trade Division concentrates on production and sale of the company’s range of cartridge sealants, adhesives and canister foams to builder’s merchants and distributors and is based at the group’s Coalville, Leicestershire site.

Left to right, Gerald Stern (L) with Stephan Coester, Head of illbruck Sealant Systems Business Unit.

Gerald Stern, one of the original founders of Alfas Group in 1981, remains with the company as Non Executive Chairman of the UK board. He said: ‘We are committed to the continued growth of our business and believe these changes will further strengthen our position as one of the market leaders in the field.

‘Being part of an international group has many advantages in terms of access to new products and additional technical support. These are positive changes, helping to drive our business forward, streamline our structure and ensuring that we retain considerable autonomy for business development here in the UK.’

Well known in mainland Europe, illbruck operates three business units, the largest being Sealant Systems. illbruck formerly operated a UK sales office, supplying the illmod brand of pre-compressed foam sealing tapes, but this was closed in 1999, with the transfer of the business to Compriband.

Alfas Group employs around 80 people at its manufacturing sites in Washington and Coalville and has annual sales of around 18m Euros (£12m).

http://www.illbruck.com
http://www.alfas.com
http://www.compriband.co.uk

New Investment Plans Spell Bright Future for Therma-Tru Doors

Therma-Tru Doors has announced a multi-million pound investment in a new production facility for Sentinel Doors in south Wales.

Early 2005 will see the start of a £7.5million investment programme in plant, premises and staff which will provide increased capacity, improved product quality and range, enhanced service levels and shorter lead times for Therma-Tru’s and Sentinel’s customers. The investment forms an integral part of the Therma-Tru’s planned European growth programme and its commitment to building lasting partnerships with customers and suppliers.

The investment, by Sentinel’s parent company Therma-Tru, is backed by the Welsh Assembly Government through the RSA grant scheme, and supported by the Welsh Development Agency. It will cement the company’s position in the market place and further strengthen its reputation as a UK door company offering a complete service. As well as the comprehensive installation service for which Sentinel has become known, Therma-Tru plans to expand and improve even further its customer service offering, from specification and design through to installation and after-sales services.

The investment will start with the development of a new 52,000 square ft production facility on a new five acre site in south Wales which offers the company significant expansion opportunities. The new premises will be equipped with state-of-the-art, highly automated lines with the capacity to manufacture 250,000 door-sets per annum.

A new R&D and technical facility will allow Therma-Tru to maintain its position on the cutting edge of door technology. The new lines, which should be operational from quarter one 2005, will provide the local south Wales economy with 150 new jobs. An additional fifty jobs will be created in other parts of the UK as Therma-Tru continues to grow its business.

‘This investment indicates our commitment to our future in the door market, and our intention to become the UK’s leading specialist door brand,’ comments Therma-Tru’s MD of European Operations, Steve Brown. ‘It represents not only a major opportunity for our staff, who are the life-blood of our business, but also for our customers. It will help us to cement real partnership relationships by offering products which stand the test of time, and unrivalled customer service.’

Sentinel’s parent company, Therma-Tru, has been manufacturing doors in the USA for forty years and selling fibreglass doors in the UK for nearly fifteen. In 2004 the company acquired Sentinel Doors, the UK manufacturer of composite doors, in a move designed to accelerate its growth in the UK. The company is now implementing ambitious expansion and investment plans to meet its target of achieving number one status in the UK door market.

Contact: Cathy Sullivan
Tel: 01443 229219
Email: mailto:csullivan@thermatru.com

Bohle AG Invests 4.5m Euros in Logistics Centre

In the last half of 2004 an impressive logistics centre was built at the headoffice site of the Bohle AG and it has now started operation as scheduled. Last August, the former warehouse was closed and the entire stock was moved to the new location. The new logistics centre provides the company with enough capacity for future growth both domestically and internationally and is essential for quick availability and short delivery times.

The new logistics centre includes a high bay system with approx. 900 storage spaces as well as a so-called automatic small parts store. This automatic small parts store can accommodate up to 14,000 bins for small parts. Were all of these bins to be stacked on top of each other, it would make a tower 3,632 metres high, that’s 760 metres higher than Germany's highest mountain, the Zugspitze.

The fully automatic bin retrieval device drives at a speed of 15 km/h along a length of 60 metres and up to a dizzying height of 12 metres. According to order, the desired small parts bin is retrieved and then sent along the 150-metre-long conveyor system to the packing stations. Also new is the ‘Pick-by-Light’ system, which guides the warehouse staff directly to the places where the products wait to be removed and packed for dispatching. As soon as the desired quantity has been taken, the bin is transported back to its assigned place.

For the time being, not all of the 14,000 small parts storage bins will be stocked. Thus, Bohle has enough room to stay ahead of future growth and to meet the changing needs of customers quickly and effectively.

Additional re-development of the new main warehouse is now underway, which will soon provide additional warehousing for Picture Framing products and new customer training facilities. In the meantime the ‘old’ warehouse has been cleared out to provide additional production space for Bohle’s expanded range of glass cutters and suction lifters, and UV Bonding product lines.

Contact: Gary Dean
Tel: 0161 342 1100
Email: mailto:gdean@bohle.de

Anglian Home Improvements Attracts Complaint

A complaint objecting to a brochure for conservatories issued by Anglian Home Improvements of Norwich was upheld in both of the two objections according to published details from the Advertising Standards Authority.

Complaint:
Objection to a brochure for conservatories that stated, 'Anglian's Conservatory Price Promise ... Substantial Shootbolt Locking Mechanism ... Each locking device on a handle has shootbolts that secure casements and fanlights deep into the frame. And doors come complete with a multi-locking system that means applying force around the central lock is a waste of time.' The complainant challenged the claims:

1. '... doors come complete with a multi-locking system that means applying force around the central lock is a waste of time ...', because the complainant believed his doors did not have a central lock and the security of his home was compromised as a result and
2. '... Substantial Shootbolt Locking Mechanism ...'. Adjudication:

The advertisers sent technical notes of their residential locking mechanisms, a PAS 24-1:1999 certificate for their single doors, copies of British Board of Agrement (BBA) certificates for their French double doors and BS 7950 certificate for their UPVC Casement Window Locking System. They pointed out that the assessment of security was a fundamental part of obtaining certification from the BBA, and the BBA took into account the overall security of the doors such as the materials used and the reinforcement supplied. The advertisers' BBA certificate showed their double doors were certified as providing adequate security against unauthorised entry by an opportunist intruder. The advertisers said the BBA advised the British Standards Institute on security matters and was part of the 'Secured by Design' test house studies group as a UKAS accredited test house for security testing. They stated that BBA certificates showed their products had been tested for security and they, therefore, substantiated the claims made in the advertisement and did not need to meet Master Locksmiths Association (MLA) Guidelines for Minimum Security Requirements for Domestic Property (MLA Guidelines).

1. Complaint upheld
The advertisers said they intended to convey that, because their system was a multi-locking system, an intruder who attacked one point, for example the central lock, would not be able to break in, because the other points would be engaged. They, nevertheless, said they would remove the claim.The Authority noted the advertisers' BBA and PAS certificates were valid but the PAS certificate was for the advertisers'' single doors only. It noted most of the advertisers'' conservatory doors, including the complainants', were double doors. The Authority understood, however, that the BBA''s main function was to assess and test innovative construction products in line with Building Regulations and the MLA was recognised as the authoritative body on locks by the Police, the Home Office, British Standards Institute and the Association of British Insurers (ABI). The Authority considered that the claim implied the doors were secure principally because of the locking mechanism. It considered, therefore, that although BBA certification included a general security component and the PAS certificate provided a general test of single doors' security, when assessing the security of locking mechanisms, using the MLA guidelines was appropriate.

The Authority noted the complainant had sent his insurer's report, which stated that the locking mechanism on his conservatory doors did not meet their minimum security requirements, which were based on ABI and MLA guidelines. It noted the complainant was an employee of that insurer; it also noted the insurer had confirmed that the report was entirely independent and purely factually based.

The Authority understood from the MLA Guidelines that locking mechanisms for domestic double doors required shootbolts of a minimum throw of 14 mm to locate into the head and sill of the door frame, a central bolt, with a minimum throw of 13 mm, and hinge bolts or security hinges. It took expert advice. The Authority understood that, according to the advertisers' technical notes, the top and bottom shootbolts did not fully locate into the door frame, but into the keeps fixed to the frame only, and the central latch projected 10 mm only. It noted the advertisers had not sent certification of their hinge bolts or security hinges and considered that the advertisers had not shown that their locks met MLA Guidelines. The Authority considered that the claim implied the locking mechanisms on the advertisers' conservatory doors were so secure that applying force around the central lock was a waste of time. Because the ABI recommended to its members that they use MLA Guidelines for security locking mechanisms and the advertisers' locking mechanism did not appear to comply with MLA Guidelines, the Authority considered that the advertisers had not shown that the locking mechanism was as secure as described in the advertisement. It concluded that the claim was misleading and welcomed the advertisers' decision to remove it.

2. Complaint upheld
The advertisers said the claim 'substantial shootbolt locking mechanism' referred to their windows only and not to their conservatory doors. They asserted that the advertisement made clear that the claim referred to their window locks only by the reference to 'casements and fanlights'. The advertisers asserted that the BBA and the British Standards Institute (BSI) had tested their windows for security and they were, therefore, 'substantial'. They referred to their BS 7950 certificate for their UPVC Casement Window Locking System and said they would amend the claim to state 'Substantial Shootbolt Locking Mechanism for Casements and Fanlights'.The Authority noted the reference to 'casements and fanlights' referred to the advertisers' windows only, but considered that that reference was not linked to the claim 'substantial shootbolt locking mechanism'. It considered that the claim implied all of the advertisers'' conservatory shootbolt locking mechanisms were 'substantial'.

Because the ABI recommended to its members that they use MLA Guidelines for security locking mechanisms, the Authority considered that the claim 'substantial' should be made only if the advertisers' shootbolt locking mechanisms met MLA Guidelines.

The Authority noted the advertisers had sent a certificate BS 7950 for their UPVC Casement Window System, which it understood from its expert was acceptable under MLA Guidelines. It was concerned, however, that the shootbolts on the advertisers' conservatory double doors did not meet MLA Guidelines; the Authority considered that the advertisers had not shown that those shootbolts were 'substantial'. The Authority concluded that the claim was misleading.

Wymar Group Invests in New Extrusion Lines for the East European Market

Wymar International NV, part of the Plastics Converting division of Tessenderlo Group, is to invest 1.2m EUR in three new extrusion lines for manufacturing window and door profiles from PVC at its Oeselgem (BE) facility.

Wymar Group operates internationally, exporting its products from the Belgian production facilities to some 20 countries. Wymar Group is among the trend-setting market leaders in the Benelux countries and in France.

The driving force for the current expansion of the Wymar Group is to be found in Eastern Europe, where company-owned distribution branches were established around five years ago in Poland and Hungary. These branches have made a considerable contribution to the growth of the company, especially in the last two years. In addition, new distribution channels were developed further eastwards in the course of 2004, mainly for Romania, the Ukraine and Russia. The investment in new extrusion lines is necessary in order to keep up with the further growth anticipated in 2005, in view of the fact that current machine capacity is being fully utilised.

The strategic expansion into Eastern Europe has been prompted by a long-term outlook, in which it is being assumed that consumption of windows in Western Europe will stabilise over the next few years, albeit with steady growth in the PVC share at the expense of timber and aluminium. On the other hand, based on the per capita consumption of PVC profiles, it is clear that there is still substantial growth potential in Eastern Europe and in Russia due, among other things, to the demand for refurbishment of older properties in these countries.

Wymar Group manufactures an extensive range of window and door profiles from PVC and interior as well as exterior systems for finishing them. In addition to its headquarters in Belgium, the Wymar Group has branches in France, the UK, Poland and Hungary.

In addition to PVC profiles, the plastics converting division of Tessenderlo Group also manufactures PVC pipes and fittings for water supply and drainage systems and plastic piping systems for applications including gas and telecommunications. This division achieved a turnover of EUR 523 million in 2003, employing 2700 people.

Web: http://www.wymar.com

After 103 Years in Business Customer Care is Still Paramount, says Leeke’s

For over 100 years J.H. Leeke and Son, based in Wales, has worked to provide customers with a comprehensive range of quality conservatory roofing products at competitive prices. As a family run business, its reputation has been built on outstanding customer care. 103 years on, the company still continues to invest heavily in the development of its staff to ensure the highest levels of product knowledge and customer service. It is with this in mind that Leeke’s chose to join the Ultraframe Registered Conservatory Installer Scheme.

Gareth Short, Group Manager at Leeke’s (pictured), said: 'Over the years we have developed a strong working relationship with Ultraframe. This partnership has been immensely beneficial to our business and ensures we always offer the most innovative and high quality products at the best prices. However, we believe it is not enough to just offer quality products and as a responsible company committed to high standards and people management we believe in practising what we preach. This is why joining the Ultraframe Registered Conservatory Installer Scheme made perfect sense. For homeowners it means guaranteeing complete confidence in our services and adding even further value. For our installers it means annual technical training and promotes the highest standards in workmanship.'

'The Ultraframe Registered Conservatory Installers Scheme is the most rigorous installer scheme on the market. With an exclusive technical affiliation with the GGF, the scheme is proving to be a huge success for members who gain from massive business benefits and referrals generated by Ultraframe.' said Linda Doughty, Marketing Director at Ultraframe.

'As market leader we have a responsibility to improve industry standards. By setting minimum technical standards and ensuring compliance with them, Ultraframe is doing everything it can to give consumers more confidence in both our products and in the companies that install them.'

Linda continued: 'The Ultraframe Registered Conservatory Installer Scheme allows the homeowner to make a more informed choice of installer. It is backed by a huge consumer campaign in the mainstream media to generate targeted homeowner referrals to maximise sales and conversion. The Scheme is also backed by our Essential Guide to Conservatories and our new website. The website alone is proving to be a great success with homeowners who are spending an amazing average of seven minutes on the site each time they log on. It all adds up to bigger business for our installers and satisfied consumers.'

Leeke’s has passed stringent vetting criteria, including an installation test and approval of homeowner references, to become a member of the Scheme. As a result Gareth Short predicts even more success ahead for Leeke’s. He continued: 'We are absolutely delighted to have been accepted as part of the scheme. This accreditation will help us stand out from competitors and builds on the company’s long established reputation for service.'

With branches in Llantrisant, Cross Hands and Melksham, Leeke’s is leading the way in conservatory installation in South Wales and the South West. It provides award winning bespoke conservatories in a range of styles to suit all budgets.
For more information on Leeke’s log onto http://www.leekes.co.uk.

Ultraframe has recently launched a new website, http://www.trade.ultraframe.com, which provides existing and potential Ultraframe customers with everything they need to know about Ultraframe, the latest product news and also advice on how Ultraframe can help and support installers and fabricators to develop their businesses. Plus installers can learn about the benefits of joining the Ultraframe Registered Conservatory Installer Scheme and apply online as Leekes did.

HM 100 Offers Tremco Client New Vision of the Future

A manufacturer of high performance insulating glass units, supplying the replacement window market in the North West of England. has just made the switch to Tremco's HM 100 insulating glazing sealant.

Based in Blackburn on the Whitebirk lndustrial Estate, Visions in Glass has been in business for nearly 10 years but has seen demand rise dramatically since 2001. Unfortunately, technical shortcomings with the sealant it was originally using forced the manufacturer to seek Tremco's expertise and the company is now utilising Tremco HM 100, the butyl based single component hot melt sealant.

Managing Director of Visions in Glass, Andy Standen, comments: 'We supply to customers across a 60 mile radius of Blackburn and have seen business boom over the past two and half years to the point where we are now producing some 1200 IG units per week.

'The problem was that we had begun to experience slumping with the hot melt sealant we had been utilising for some time, leading us to use far too much material and we were not able to get the corners formed cleanly. Furthermore, we did not feel we were getting the backup we needed from our sealant supplier.

'I had been aware of Tremco and its reputation for some years and called the company's technical representative in. Tremco arranged a demonstration at our premises with a machine they brought with them and as we are BS 5713 registered, we did our own in-house testing on some butterflies (two pieces of glass joined by a sample of the sealant). Not only did they pass the test but our gunners liked the HM 100 and since the switch to Tremco's HM 100 we have had no more problems.

'The vast majority of the sealed units produced by Visions in Glass are either 24 mm or 28 mm thick and feature an inner leaf of Pilkington K. The single production iine is operating at close to capacity with Tremco HM 100's clean working characteristics and rapid development of strength assisting the company's workforce to optimise their productivity.'

Tel: 01753 691696

Solutia International Design Awards Announced

Marking an industry first, the Laminated Glazing Interlayers division of Solutia Inc. will bring the design talents of both architects and automotive designers under one competition.

The Solutia International Design Awards, now in its seventh year, is a global competition that pays tribute to architects, interior designers, automotive designers and laminators who have used laminated glass liberally in their design.

Entries are now being accepted for the awards, which will recognise projects that demonstrate innovative uses of any of Solutia's architectural glazing products, which include Vanceva™ and Saflex® laminated glass interlayers and KeepSafe® brand families.

This year, the programme will also recognise automotive designers and engineers for the use of laminated glazing in automobiles. 'Our laminated glass products have been used in amazing ways by automotive designers, as well as building designers,' says Jay Pyper, North American market development director for Solutia. 'We are proud to be able to recognise that dynamic group of individuals as well.'

The projects will be judged by an international jury of celebrated industry professionals in both the architectural and automotive industries. This year’s winners will receive an original work of art by noted American glass artist Laurel Fyfe. Last year’s winners spanned the globe and represented architectural and interior work, as well as an artistic installation.

Entries are due by June 30th, 2005. For more information on entering architectural projects contact Janet Ryan, programme coordinator, at 314.822.8860 or mailto:janetlryan@earthlink.net or contact Solutia’s Architectural Glazing Solutions Centre at 877.674.1233. For more information on entering automotive projects contact Rick Williams, programme coordinator at 248.740.0483.

Entry forms are available online at http://www.vanceva.com/design.

solarcentury Wins Government Grants to Fund More Clean Energy Projects

The UK Department of Trade and Industry recently announced that it has awarded solarcentury a significant proportion of the funding available, for six solar photovoltaic projects throughout the UK.

Jeremy Leggett, solarcentury’s CEO said 'I am ecstatic that we have built on our solid reputation by continuing to capture funding for important projects, since the Government established its scheme in 2002.'

solarcentury won funding for projects within the commercial, private and public sectors.
 
UK Energy Minister Mike O'Brien said: 'Solar installations are a visual reminder that we need to be increasingly innovative in our electricity generation if we are to stop our day to day lives damaging the environment.'
 
Following solarcentury’ s highly successful project with Plymouth Council and JC Deceaux, which phased the installation of 350 solar powered bus stops, the Council have won grant funding to install PV (photovoltaics) on its new bus interchange. solarcentury will project manage and install Sanyo hybrid-crystalline photovoltaic modules built along a curved standing seam roof, which has the potential for excellent public exposure. 
 
Other projects include 137 new, private homes development in Wattston Village, northeast of Glasgow, which received a solarcentury record amount of funding.
 
Gazeley properties, a major distribution warehouse developer won funding for application of PV at its new Magna Park estate in Lutterworth, Leicestershire. With the release of  Planning Policy 22: Renewable Energy, updated by the Office of Deputy Prime Minister recently, this may help Gazeley gain planning permission faster, whilst making a significant contribution to environmental sustainability.
 
These projects represent increasing examples of UK developers setting the ambitious target to reduce or eliminate the carbon footprint of developments, large or small.
 
'This is only the tip of the iceberg of what is currently happening in the UK with solar,' Leggett commented, 'more and more people and business involved in this inspiring, smart technology are breaking the mould in the way business is positively changing here in the UK.'

Volkswagen Van Centres Gain Quality Accreditation

Throughout last year, Volkswagen Commercial Vehicles has been introducing a Partner Certification Programme across its national network of Van Centres which aims to ensure customers receive the highest standards of service.

To achieve this, Volkswagen AG, Germany, in conjunction with Volkswagen Commercial Vehicles UK, has drawn up a set of procedures covering every aspect of the business with which each Van Centre has to comply. It incorporates ISO (International Organisation for Standardisation) and BER (Block Exemption Regulation) compliance.

The procedures are designed to provide a standardised level of quality service throughout the network. To gain certification, each Van Centre has to pass an annual audit by an independent, accredited registrar. After carrying out a stringent inspection, the registrar will, if satisfied that the required standards have been met, grant certification.

The inspection or audit covers many areas of Van Centre business including:
• Maintenance and service facilities
• Stocks of parts and accessories
• Reception and customer service areas
• Internal and external signage
• POS and sales literature

Peter Wyhinny (pictured), Director of Volkswagen Commercial Vehicles, stresses the importance of Partner Certification: ‘The programme is essential to our continued commercial success. It not only forms the basis for a professional and efficient business but creates the right environment for high quality customer care.’

To date, nearly half of Volkswagen Commercial Vehicles’ national network of Van Centres has been awarded Partner Certification.

Tel: 0800 717131
Web: http://www.volkswagen-vans.co.uk

Long-Servers Clock Up Almost 500 Years at Litchfield Group

A record number of employees at the Nether Heage-based Litchfield Group of Companies – parent company of Sheerframe systems company L.B. Plastics Ltd - received gold watches for their long service at a recent presentation.

In total, nineteen workers at the Derbyshire firm celebrated 25 years with the company, achieving between them a total of over 475 years’ joint service. To mark the occasion, Group Chairman Leon Litchfield presented each with a gold watch at a champagne reception at the Group’s Nether Heage headquarters.

From left to right:
Ken Mottershead – extrusion operative supervisor, Terry Gibson – blending operative, Peter Matthews – moulder, Roy Woodiwiss – Hometrim 2nd operative, Philip Allsop – despatch operative, Greta Rayner–Richardson - general products administrator, Keith Bradley – blending operative, Keith Ford – retired, Paul Beresford – extrusion operative, Peter Fox – fabricator, Philip Walker – works office manager, Norman Rowe – extrusion operative, Jim Duncan – technical services manager.
People who also received the award, who are not pictured are: Pat Cogan – second operations supervisor, Ross Foulkes – despatch operative, Philip Gascoigne – toolmaker, David Groves – toolmaker, Philip Marsh – moulder, Philip Morley – toolmaker

The Litchfield Group of Companies has a remarkable record of long serving employees, with over 160 receiving gold watches to celebrate 25 years’ service, since the business started in 1922. All of those receiving watches this year live within a 10 mile radius of the company’s headquarters.

The firm now operates worldwide, providing high-performance products and components primarily to the building industry. Product ranges include Sheerframe window and door systems, Sheerline decking and fencing and Hometrim cladding, soffits and fascias.

Mr Litchfield thanked his colleagues for their service over the years. He said, ‘We continue to expand our international business, but the cornerstone of our success is our Derbyshire base, and the loyal workforce which continues to serve us so well. To remain successful, the Litchfield Group has had to constantly adapt to changes and stay ahead of its competitors worldwide. The commitment and flexible approach of our workforce plays a major part in that success.’

Prestigious Accolade for Direct Trade

Direct Trade (Yorkshire) Ltd, a supplier of windows, doors & conservatories has been officially recognised as one of the fastest growing companies in the country by The Sunday Times Virgin Atlantic Fast Track 100 Publication.

The company was founded in 1998 by business partners Steve Green & Mick Bowley. Since 2000, Direct Trade‚s sales have grown from £913,000 to £6.8 million in 2004.

The Fast Track 100 is the definitive annual league table of the UK's fastest-growing unquoted companies.

Steve Green & Mick Bowley of Direct Trade are understandably delighted: 'It's an honour for Direct Trade to make the Fast Track 100 and be associated with leading business names such as Virgin Atlantic, Price WaterHouse Coopers, HSBC and Microsoft which sponsor the league table.

'We've built our success on offering a high quality service which has created substantial word-of-mouth recommendations. Our sales growth has gone through the roof and that's why we were selected from more than one million businesses across the UK.'

Direct Trade (Yorkshire) Ltd is determined to maintain momentum during 2005 with the introduction of the company's new 'Imperial' fully sculptured window & door range plus conservatory packages featuring the 'Global' roof.

These will be exhibited at Glassex 2005 13th -16th March at the NEC Birmingham. Stand No. E035.

PPG to Increase Capacity for Energy-Efficient, High-Performance Glass

Officials from PPG Industries announced that they will expand capacity at their Wichita Falls, Texas, flat glass plant to meet the growing demand for low-emissivity glass and accommodate future generations of energy-efficient, high-performance products.

Mark Orcutt, PPG's vice president of flat glass, said the company will invest approximately $40 million to install a magnetic sputtered vacuum deposition system at Wichita Falls. The system, which applies thin, transparent coatings that enhance the colour and optical properties of glass substrates, will enable the Texas plant to make products such as Solarban 60 solar-control low-e glass, whose coating can help reduce heating and cooling costs of homes and buildings.

'PPG was a trailblazer in the development of solar-control glass more than 70 years ago, and our investment in Wichita Falls will expand our company's ability to supply products with an unsurpassed selection of aesthetic and solar-control capabilities,' Orcutt said. 'Architects and builders require energy-efficient glass to meet their customers' demand as well as increasingly expanding building codes. PPG has the products and the capacity to meet those needs today and into the future.'

When the expansion is complete, scheduled for the first half of 2006, Wichita Falls will become the fifth PPG facility to make coated glass. The others are: Carlisle, Pa.; Evansville, Ind.; Mt. Zion, Ill.; and Salem, Ore.

Pittsburgh-based PPG is the largest glass manufacturer in North America and has been meeting the demands of the commercial and residential construction industries since 1883. The company's glass businesses also supply products for industrial and specialty applications, as well as automotive, aircraft and other transportation original equipment, and replacement windshields and windows. PPG also is a global producer of coatings, fibre glass and chemicals. Sales in 2003 were US$8.8 billion.

Alcoa Announces Full-Year Income of $1.4bn: Highest in Company's History

Alcoa announced on 10th January that its full-year 2004 income from continuing operations was $1.402bn, or $1.60, up 33% from $1.055bn, or $1.22, per diluted share, in the previous year. The 2004 revenue of $23.5bn, is the highest level in the company's history, and 11% higher than 2003.

‘This year, we achieved the highest revenue in Alcoa's history and the second highest profitability,’ said Alcoa Chairman and CEO Alain Belda. ‘Strong cash flows allowed us to reduce debt by more than $1 billion and invest in the company's future. While we are benefiting from strong aluminium fundamentals and improving end use markets, U.S. dollar weakness and higher input costs continue to pressure margins. We will continue to attack costs, streamline our organisation, and take advantage of the strong market environment,’ said Belda.

In the fourth quarter, income from continuing operations was $345 million, or $0.39, up 15 percent from $299 million, or $0.34, in the third quarter and up slightly from $342 million, or $0.39, in the same period last year.

Fourth quarter net income of $268 million, or $0.30, was negatively affected by the previously disclosed $77 million after-tax charge reflecting the planned divestiture of certain non-core businesses, principally the company's telecommunications businesses. Net income was $283 million, or $0.32, in the 2004 third quarter, and $291 million, or $0.33, in the fourth quarter of 2003.

Results Overview
For the full year, revenue increased by 11 percent and profitability increased by 33 percent over 2003. Higher metal prices accounted for 60 percent of the increase in sales with the rest driven by the company's drive for organic growth, its strategy of selling higher value-added products, and the impact of currency on non-US sales. A substantial part of the increase in revenue was offset by significantly higher energy and other input costs, and the negative impact of a weaker dollar on non-US manufacturing operations.

Sales in the fourth quarter rose to $6.041 billion, up 3 percent over the third quarter and 12 percent over last year. On a sequential quarter basis, higher primary prices as well as strength in the consumer products business were partially offset by seasonal declines in can sheet, building products and closures. Higher input costs, particularly for energy, petroleum-based products, and freight, coupled with the impact of the weaker US dollar, negatively affected several businesses in the quarter.

In each of the third and fourth quarters, the strike at the Becancour (‘ABI’) smelter, now resolved, negatively affected earnings by $0.03 per share.

As previously announced, Alcoa agreed with Alumina Ltd. to develop its Brazilian Juruti bauxite reserves within their joint venture, resulting in a gain of $37 million, or $0.04. This transaction, combined with a $21 million reversal of a valuation reserve for foreign net operating losses, resulted in an effective tax rate for the quarter of 14 percent. The full year tax rate was 25 percent, in line with the previous year's rate.

The company's return on capital for 2004 stood at 8.5 percent, up 150 basis points from the previous year.

Update on Primary Metal Restarts
To take advantage of historically high aluminium prices, the company made significant progress toward restarting several of its smelters. When complete, restarts will add 220,000 metric tons of production in 2005, leaving the company with idle capacity of 361,000 metric tonnes. Progress was made at:

• the ABI facility in Canada, where full production is expected to be reached in April 2005. Restart costs will total $10 million before taxes with the bulk of that spending in the first quarter. ABI will produce approximately 100,000 additional metric tons in 2005. Alcoa owns 75 percent of ABI.
• the Wenatchee smelter in Washington, USA, after the successful resolution of an issue regarding health care cost sharing. Wenatchee should reach full production of its two restarted lines in February 2005, and is expected to produce approximately 85,000 metric tons this year.
• the Massena East and West smelters in New York, USA, where an additional 60,000 metric tons will be produced in 2005.

Restart costs for Wenatchee and Massena were minimal in the fourth quarter of 2004.

Review of Transactions
The company continued its portfolio review to better focus on its core businesses, while making progress on acquisitions that will enhance its competitive position.
Alcoa received final approvals from the Government of the Russian Federation to proceed with its purchase of Rusal's controlling interests in two fabricating facilities in Samara and Belaya Kalitva in the Russian Federation. The addition of the two Russian fabricating facilities to Alcoa's leading flat rolled products business will allow the company to serve both the growing Russian market and global customers in Europe, Asia, and the Americas.

Alcoa reached an agreement with Fujikura, Ltd. that paves the way for Alcoa to obtain full ownership of the Alcoa Fujikura (‘AFL’) automotive business. In return, Fujikura will obtain complete ownership of the AFL telecommunications business. The loss on this transaction is included in discontinued operations for the fourth quarter.

Earlier this quarter, Alcoa and its partner completed the sale of Integris Metals to Ryerson Tull for $410 million in cash plus the assumption of debt, resulting in no material gain. Alcoa owned 50 percent of Integris Metals.

Management Actions
To improve profitability and better serve its customers, the company re-organised the business structure to create six global businesses and appointed three new group leaders in the packaging, global extrusions and flat rolled products businesses. The new organisation, the completion of the Russian transaction, and the company's continuing cost reduction efforts may provide an opportunity for improved production efficiencies that could result in restructuring charges this year.

Balance Sheet and Growth Projects
For the second year in a row, the company reduced its debt by more than $1.1 billion, strengthening its balance sheet while executing its capital-intensive growth plan. Alcoa's debt-to-capital ratio improved to 29.3 percent at the end of the year, down from 35.1 percent at the end of 2003, and within the company's targeted range of 25 to 35 percent.

In the quarter, capital expenditures were $475 million, bringing full year capital spending to $1.1 billion, or 95 percent of depreciation. Approximately one-third of the spending in 2004 was growth-oriented. The company expects to spend approximately $2.5 billion on capital projects in 2005, with $1.6 billion dedicated to growth projects.

Growth capital is aimed largely at the upstream businesses. In 2004, Alcoa finished a refinery expansion in Jamaica, and will complete brownfield projects this year at refineries in Suriname and Pinjarra, West Australia. In 2004, the company broke ground at its new Iceland smelter and for an expansion at the Alumar smelter in northern Brazil. In 2005, the company will invest in a new anode plant in Norway, modernization of a Spanish smelter, and improvements at the newly acquired fabricating facilities in Russia.

Segment and Other Results
(all comparisons on a sequential quarter basis, unless noted)

Alumina and Chemicals - Segment profitability increased by $8 million (5 percent), with the Juruti transaction contributing $37 million in ATOI. The third quarter benefited from a $25 million profit on the winding down of an alumina tolling contract. On an operational basis, higher alumina volumes were offset by the impact on costs of the strengthening Australian dollar. Alumina production for the quarter was 3,623 thousand metric tons ('kmt'), compared to 3,546 kmt in the third quarter.

Primary Metals - Segment profitability increased $10 million (5 percent) largely due to higher metal prices. Costs associated with the strike at ABI had a negative impact in both the third and fourth quarters. In addition, the weaker dollar increased costs at non-US facilities. Primary metal production for the quarter was 824 kmt in line with the third quarter. The company purchased roughly 133 kmt of primary metal for internal use as part of its strategy to sell value-added products.

Flat Rolled Products - Segment profitability decreased $3 million to $59 million, down 5 percent from the third quarter. While aerospace and distribution markets continued to be strong, lower can sheet shipments drove the decline in profitability.

Engineered Products - Segment profitability fell by $10 million, to $50 million. Howmet, Alcoa Fastening Systems and the Forgings business continued to improve, but a weak environment in the European soft alloy extrusions market drove lower shipments and profitability.

Packaging and Consumer - Segment ATOI of $38 million was down slightly from the third quarter as typical seasonal strength in the consumer packaging business was offset by seasonal decline in the closure business. Higher resin costs continued to negatively affect the segment.

Other - Profitability decreased $19 million primarily driven by seasonally lower volumes and higher input costs at the Home Exteriors business. The segment has been restated to reflect the reclassification of the telecommunications business to discontinued operations.

Hydro Capital Markets Day - Continued Profitable Growth

'Few 99-year-olds are more fit and better prepared to meet the future than Hydro,' says President and CEO Eivind Reiten in connection with the company’s annual Capital Markets Day. 'In the course of a few years Hydro has doubled its oil and gas production, achieving  the same in Aluminium. And today we are presenting new, ambitious targets for the company.'

The solid results in 2004 are attributable to more cost-efficient operations, a marked increase in oil and gas production, a high oil price and improvements in the market for primary aluminium. Safety developments in the company are positive. At the same time, Hydro’s European primary aluminium operations face some demanding challenges, as the result of high energy prices and a weak dollar. The company has announced write-downs affecting parts of its European smelter activities, while emphasizing the need for a continued focus on restructuring.  

The company has made some extensive changes in recent years and is now concentrating with full vigor on pursuing its development as an energy and aluminium business.

'We started 2004 with the successful stock exchange launch of our former agri business and are concluding it with the unveiling of our plans for a large and strategically important aluminium plant in Qatar. During the year we have delivered the Nye Tyin power plant in Norway, completed the biggest and most environmentally friendly aluminium plant in Europe, located in Sunndal, Norway, and fully commenced the task of developing the enormous Ormen Lange gas field and the world’s longest subsea pipeline, Langeled. To mention a few,' says Reiten. 'These projects – combined with efficient operations, innovative force and expertise – provide the basis for continued profitable growth for Hydro in the years to come.'

The improvement programmes in Aluminium have had a considerable effect. Hydro has implemented further cost-improvement measures in 2004 at its Norwegian aluminium metal plants. These measures are expected to result in an annual improvement of about NOK 350-400 million, having full effect from the second quarter of 2005.

The strengthening of the Euro and the Norwegian krone against the US dollar weakens the competitiveness of Hydro’s European aluminium activities. Since the acquisition of VAW in March 2002, the Euro has appreciated by some 30 percent and the effect of this – combined with a considerable increase in power costs for Hydro’s primary production in Germany – has led to a write-down in the value of three primary aluminium plants of some NOK 1.5 billion after tax. This write-down will be charged to the results for the fourth quarter of 2004.

Hydro’s financial position is solid. The company’s debt-equity ratio, including off balance-sheet pension and leasing obligations, has been considerably strengthened throughout 2004. The company’s long-term goal is a debt-equity ratio of about 0.5. The debt-equity ratio at the end of the third quarter was 0.12, better than the long-term target.

Outlook for 2005 and beyond

Hydro anticipates a somewhat higher production of primary aluminium as a result of the full effect of the Sunndal expansion and increased access to primary aluminium in 2005 following the Alouette expansion in Canada. The company’s efforts to improve the competitive position of its upstream operations will continue, and Hydro will press on to improve the situation for businesses that do not generate a satisfactory rate of return. The  strategy of growing in highly profitable downstream markets will continue. 

Production of primary aluminium is expected to increase from about 1.6 million tonnes in 2004 to approximately 2.0 million tonnes in 2009. This estimate includes the impact of the new plant in Qatar.

£100m Distribution Centre for Wolseley UK Means Product Expansion, Improved Customer Service and Reduced Costs

Wolseley plc, the world's largest specialist trade distributor of plumbing and heating products and a leading supplier of building materials to professional contractors, announces a £100 million capital investment programme for its UK distribution network.

Wolseley's investment in its supply chain and distribution centre network has been an important factor in driving growth and margin improvement, particularly in the UK and USA, in recent years. As the Group's experience of supply chain management for the building materials sector has increased, the distribution strategy has evolved to the extent that new distribution centres have increased in size and have benefited from increased automation. Wolseley companies have also been able to benefit from best practice sharing in developing their infrastructure investment. Wolseley's announcement for the UK on 10th January is the next step in that process and is an important part of the European supply chain strategy.

Furthermore, this investment also marks the continuation of Wolseley UK's restructuring and rebranding programme, announced in spring 2004, which is streamlining the company's operations and maximising the efficiencies across all seven of its operating brands - Plumb Center, Build Center, Hire Center, Climate Center, Parts Center, Pipe Center and Drain Center.

The initial plans include building a new 340,000 sq ft (31,586 m2) national distribution centre in Leamington Spa, on a site adjacent to Wolseley UK's new headquarters, and to opening another regional distribution centre in the north west of England in 2006/7. Building work in Leamington Spa will commence as soon as planning permission has been granted, with the expectation that the new national distribution centre will open by the summer of 2006.

The new national distribution centre will serve all of Wolseley UK's brands working alongside the company's existing regional distribution centres in Melmerby (North Yorkshire), Worcester and Marston Gate (near Milton Keynes) plus local bulk distribution sites across the UK.

The additional distribution network capacity will assist in meeting the growing demand for Wolseley UK's services through all of its brands, across all industry sectors. The new distribution centre network will enable a wider range of products to be held, provide better service to branches and customers and lower costs through a fully integrated supply chain and improved logistics management.

The £100 million cost of the programme will be met from Wolseley's existing resources with the bulk being incurred in the next three financial years. The programme is expected to benefit earnings in the year ending 31st July 2006 and thereafter.

Charlie Banks, Group Chief Executive of Wolseley said:
'This £100 million infrastructure investment demonstrates a long-term commitment to growing our business and sharing best practice across the Group. Our distribution centre network and supply chain management in the UK and USA have been an integral part of Wolseley's success and we are confident that they will provide us with a competitive advantage in the future. This investment will allow us to continue to meet rising customer demand while helping eliminate inefficiency from the construction supply chain.'

Wacker and Dow Corning Reach Agreement on Integrated Manufacturing Site in China

Wacker-Chemie GmbH and Dow Corning Corp. have finalised the master agreement for their planned Asian joint ventures to produce silicone intermediates and fumed silica in the Shanghai area.

According to the agreement that has been approved by both Boards of Directors, the partners intend to build a world-scale production complex for siloxane and fumed-silica. The joint ventures will involve capital expenditures totalling several hundred million dollars. Construction work is scheduled to start immediately upon issuing of the necessary licenses by the Chinese authorities.

Dr. Stephanie Burns, President & CEO of Dow Corning and Dr. Peter-Alexander Wacker, President & CEO of Wacker Group both emphasise the strategic importance of the planned joint ventures: 'China significantly outpaces average market growth. In just a few years from now, China will be one of the largest chemical markets worldwide. It is our goal to leverage the cost and quality advantages of an integrated site in China to benefit our respective local customers and help further develop local markets and communities.'

On the downstream side, Wacker and Dow Corning, independently, will continue to serve their particular customers. Consequently, they will develop and operate separately their own manufacturing facilities for finished products.

Saint-Gobain Acquires Swiss Bathroom Distributor

Saint-Gobain’s Building Distribution Division has announced the acquisition of the Swiss company Sanitas Troesch, the leading distributor of bathrooms for professional trade customers and number two distributor of kitchens in Switzerland.

Formed from the 1991 merger of two family-run companies Sanitas and Troesch, respectively founded in 1911 and 1912, the group has achieved high levels of profitable growth over the last ten years, fueled by both organic and external expansion.

Sales for Sanitas Troesch in 2004 are expected to come in at CHF 474 million (€308 million), up 6.7 % on 2003. The group currently employs over 720 people in 26 branches located across Switzerland.

This acquisition, which will have a positive impact on the net income of the Saint-Gobain Group (after interest costs and tax) from as early as 2005, is a further step in the drive to develop the Building Distribution Division’s specialised business lines. As well as strengthening the Division’s leadership in the European bathroom market, the acquisition will provide the Group with a solid base on which to develop its various other businesses in Switzerland.

The completion of the transaction is subject to the approval of the relevant competition authorities.

Sales for Saint-Gobain’s Building Distribution Division in 2004 are estimated at €13.6 billion. The Division currently has more than 58,000 employees and a network of over 3,300 sales outlets located in 19 countries. Saint Gobain is the leading distributor of building materials in Europe and its main brands are Point.P, Jewson’s, Raab Karcher, Dahl, Lapeyre, and La Plateforme du Bâtiment. In bathroom distribution, its main specialised brands are Cedeo in France, Lapeyre, Graham’s in the UK and Dahl in Scandinavia.

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