Price is not the issue on self-clean glass, says Pilks

The price premium for Pilkington Activ™ self-cleaning glass, has done little to deter buyers. That is the conclusion of Noel McSweeney, Managing Director of Senator Windows, the company that launched Pilkington Activ™ throughout Ireland in March 2001.

'We are proud that we were the first company in the world to sell Pilkington Activ™ Self-Cleaning Glass to the general public and we have focused on the premium end of the market with this product' says Noel. 'Just like we would typically also offer high security fittings and Pilkington K™ Glass to add real value for our customers, and we have received no resistance at all. People just want this product', he added.

Senator Windows, which has showrooms and offices throughout Northern and Southern Ireland, worked with Pilkington to test launch Pilkington Activ™ earlier this year. The product works through a unique dual action that uses ultra violet light and rainwater to literally break down dirt and wash windows.

'In the first six months all targets were smashed. It is a very simple concept that finds immediate favour with homeowners' says Noel. 'Ireland's climate offers excellent test conditions for this product, and it has proved very successful indeed.'

With Pilkington Activ™ launched in the United States in June 2001, the product will be rolled out Europe-wide from March, and will appear in mainland Britain a few months later. The timing of the launch in the UK has been decided upon because of the need for the UK market and customers to adapt to the new Part L regulations coming into force from 1st April 2002. The experience of Senator Windows in Ireland will be used to ensure a smooth entry into the demanding UK home improvement market.

'The UK launch of the world's first self cleaning glass, coupled with the boost that the revised Part L of the Building Regulations will bring, will mean a very busy year indeed, for Pilkington and its customers a Pilkington spokesman remarked David Stoker, Pilkington UK Sales Manager. Buoyed by the success in Ireland he added: 'As the first with self-cleaning glass, and with Pilkington K™ Glass the clear market leader in the Low E sector, Pilkington is proving its capabilities as a world leader in the glass business. We intend to stay ahead of the market bringing new product opportunities for our customers. It will be an interesting year.'

www.pilkington.com
   

Piper named as a 'Best Trading Partner' in Report
 
Piper Double Glazing Ltd, a family owned replacement PVCU Company based in Kent, has been recognised as one of the Best Trading Partners of 2001 in the Windows & Doors Industry.

Focusing on the best companies in the industry as part of a new 'Trailblazers' Edition, market analysts Plimsoll has awarded 50 companies its highest mark of distinction, 'Best Trading Partner'
for 2001.

Chosen from 1OOO companies in the Windows & Doors industry, 50 companies were selected for their financial and commercial success. These companies are taking the industry forward, effectively changing the rules of the game and proving that the Windows & Doors industry can reward innovation and niche performance.

Taking an overall measure for success, companies must have a combination of a strong balance sheet, good profitability and sound cash control. They are achieving this whilst capturing market share. Last year these 50 'Best Trading Partners' grew by over 25 per cent on average compared to the industry average of 7.4 per cent. Profit margins at 6.4 per cent on average were also above the industry of 3.1 per cent. But it is their overall performance that sets them apart.

Companies featured in this special 'Trailblazers' Edition will be receiving a special award over the coming weeks to celebrate their success and their contribution to the Windows & Doors industry.

Piper Windows Ltd
Tel; 01843 850500 Fax: 01843 852626
Email: piper@piperwindows.co.uk
Web: www.piperwindows.com

Pilkington refrains from bid for Egypt Glass
 
An offer from British glassmaker Pilkington Plc for a majority stake in the Egyptian Glass Co. fell through after only 1.4% of shareholders agreed to sell, according to recent statements.

'The Pricing Committee decided... not to execute the transaction upon the request of the brokerage company representing the buyer,'a bourse statement said.

'The total offered shares reached 21,333, that represents 1.4 per cent of the company's total shares, which will not fulfil the minimum required,'it said.

The stock exchange said last month Pilkington wanted to buy 1.35 million shares in Egyptian Glass at a price of 105 Egyptian pounds ($25) per share, representing 90 per cent of the issued and paid-in capital.

The offer would have been worth about 142 million pounds ($33 million).

But Pilkington had the right to refrain from executing the deal if the number of shares offered for sale was insufficient to give it ownership of 78 per cent of the issued capital, the bourse said.

Egyptian Glass shares rose nearly nine per cent on the offer.

Guardian will build second float plant in Brazil
 
Guardian Industries Corp. has announced that it will build a second float glass manufacturing facility in Brazil. Executives of Auburn Hills, Michigan-based Guardian joined Paraná Governor Jaime Lerner and Balsa Nova Mayor Osvaldo Costa at the Government Palace in Curitiba a fortnight ago to reveal plans for the new 120 million dollar facility to be located in Balsa Nova, in the state of Paraná.

Governor Lerner made the announcement and was joined by Mayor Costa, Ralph J. Gerson, president and CEO of Guardian International and Mark LaCasse, managing director of Guardian Latin America.
'This second major investment in Brazil, along with our current facilities, including our plants in the state of Rio de Janiero and in Venezuela, and our distribution units in Argentina, Mexico and Colombia, demonstrate our strong commitment to the growing and increasingly attractive markets for flat glass products in Latin America,' said Gerson.

Construction is scheduled to begin early next year with production anticipated to commence in June 2003. The plant is expected to employ some 200 people and indirectly create nearly one thousand jobs.

Gerson said the company selected Balsa Nova because of its central location, excellent work force, close proximity to the furniture industry and for ease in exporting goods throughout the Mercosul region.

The plant will be Guardian’s 22nd float glass manufacturing facility and follows closely on the company’s recent cornerstone laying ceremony for its 21st plant in Czêstochowa, Poland.

www.guardian.com

HomePro admitted to insurance watchdog

HomePro Insurance, one of the UK's leading providers of lnsurance Backed Guarantees (IBGs), has been admitted to the General lnsurance Standards Council (GISC). The GlSC is the new regulator for the general insurance industry; established to regulate the sales, advisory and service standards of its members. HomePro lnsurance is one of the first in its field to be admitted.

The GlSC has respectively established codes of conduct for those supplying
insurance to commercial and private customers. If the company fails to observe the codes of conduct, customers have redress through an independent complaints scheme to which all GISC members must belong.

HomePro lnsurance has three lBGs that offer differing levels of assurance:
• Value - Value covers work in progress and all completed workmanship and materials for up to 10 years.
• Value Plus - As Value, but includes deposit insurance for up to 25% of the contract value.
• Comprehensive - As Value Plus, but includes index-linked cover to ensure future value is protected.

All HomePro lBGs are underwritten by Pinnacle lnsurance plc - one of the UK's leading insurance providers and members of the Association of British lnsurers (ABI). The scheme is authorised by the Department of Trade & lndustry and Pinnacle policies are subject to the arbitration and complaint schemes provided by the Association of British lnsurers and the lnsurance Ombudsman Bureau.

Kim Rehfeld, HomePro MD, said, 'HomePro has always been committed to high standards of service, and our membership of the GISC is independent recognition of this fact'.

http://www.homepro.com

Ultraframe wins copyright battle after sales director spotted his own house in competitor's brochure

Ultraframe (UK) Ltd has been awarded undisclosed damages and costs in a recent action against Plastmo Profiles Ltd under The Copyright Designs and Patents Act 1988. The case is a classic example of infringement of intellectual Property Rights (IPR) and the judgement is evidence of Ultraframe's determination to protect its patented products.

Plastmo Profiles infringed materials relevant to Ultralite 500 in the launch of its own lean-to roofing system. It used a photograph taken on Ultraframe's behalf in its promotional materials for its then-to-be-launched lean-to roofing system. The photograph was reversed, blurred and digitally altered but was nonetheless recognised by Peter Allen, Ultraframe's Sales Director, as having been taken at his then home. The photographer assigned the copyright to Ultraframe.

A letter before action was sent to Plastmo Profiles seeking undertakings, a public apology, damages and costs. In due course undertakings not to use the photograph were obtained, but the other relief sought was refused.

Proceedings for copyright infringement were then issued seeking the outstanding relief. Plastmo Profiles admitted that copyright subsisted and that it had copied, but denied any loss had been caused. This was notwithstanding its admission that over 100,000 copies had been made - the advert using the photograph having been shown in at least 5 trade magazines in late summer 2000.

The matter proceeded to the usual allocation hearing at Court and Ultraframe issued an application, to be heard at the same time as the allocation hearing, seeking summary judgement on liability (damages to be assessed at a later stage). Plastmo Profiles argued that it was possible Ultraframe had not suffered any loss and it would therefore be improper to find that infringement had occurred as contested at the hearing. They also argued that the matter should be heard in the Small Claims Court, where costs are not awarded, on the basis of its low value.

Plastmo Profiles failed on both counts, as it is not necessary to show loss to succeed in an infringement action. As the case was brought under The Copyright Designs and Patents Act 1988 it was deemed to be appropriate for the multi-track (reserved for complex matters), irrespective of value.
Judgement was entered against Plastmo with undisclosed damages being awarded to Ultraframe. Costs were also awarded to Ultraframe, and an application for these has been made. Summary judgement was made in May 2001; with undisclosed damages being confirmed in October. Costs are to be assessed.

Nick Gale, Managing Director of Ultraframe, said, 'We are obviously delighted that the justice of Ultraframe's claim against Plastmo Profiles has been recognised. Ultraframe's brand and design innovation is crucial to the success of our company and our customers' businesses, and we are determined to protect that value whenever the circumstances demand. Much resource, creativity and time goes into the development of technology and promotional materials for our customers; and it is obviously unacceptable and unfair for their and our competitors to illegally short circuit this investment in any way'.

http://www.ultraframe.co.uk

IC Market Monitor publishes major report on Baltic Window Industry
 

The total market for windows in the Baltic Countries is expected to grow by 8.1% in terms of quantity and 8.2% in terms of value in 2001. The best development shall be in Estonia with a growth rate of 13.0%; followed by Latvia with +8.8% and Lithuania with a growth in quantity of 6.6%, as the latest report from InterConnection Consulting reveals.

The economy of the Baltic Countries has been deeply hit by the economic crises of 1998 in Russia. The dynamic growth rates of all countries changed to a real decline, one Latvia could enjoy a small GDP growth of 1.1% in 1999. In the meanwhile, the economy recovered and all Baltic countries are enjoying growth rates between 3 and 5 per cent, hence positively affecting the construction market. New dwellings are needed in the Baltic Countries, even if the population is decreasing. As the GDP per capita is rising, more and more families can afford a private house. The living standard in many old panel houses is so bad that there is rather a desire to build new flats than to refurbish these panel houses; a situation similar to Eastern Germany some years ago.

InterConnection expects a further strong development of the window market and expects a growth rate in terms of quantity of 8.2% in 2002 and 7.1% in 2003. Again Estonia shall see the highest growth rate of 13.0% for 2002, followed by Latvia and Lithuania.

The market shares of the frame materials in the year 2001 amount to - in terms of quantity - 63.3% for PVC windows, 24.0% for wood windows, 11.9% for Aluminium windows and a mere 0.9% for wood-alu combinations. PVC windows enjoyed a dramatic growth in the last year; supported by the market entry of many multi-national PVC profile suppliers like Trocal, Rehau, Gealan, Schuco and some more, mainly at the expense of the wood windows.

InterConnection believes that the market share of PVC windows will continue to grow to about 2/3 of the total market in 2003. Wood-Alu windows are still a niche with a market share of 0.8% in the year 2001; nevertheless it is strongly recommended to invest in this product right now as the demand for wood-alu combinations will grow strongly in the next years; like it did in Germany and in Austria in the last years. Especially in the private housing sectors, one and two family dwellings for families with a higher income shall offer good market chances for this product.

Sales of metal (mainly aluminium) frames are believed to stay stable, the growing demand for façades shall outweigh the shrinking demand for classical aluminium-windows. Like in most emerging markets, direct distribution is still dominating all markets in the Baltic Countries with a share of around 90% of all sales, hence letting a mere 10% for trade sales. Nevertheless we believe that the indirect distribution channels (dealers, D-I-Y stores) will gain more importance in the next years.

Prices encountered a sharp decline within the last years, the average price for a PVC window shrunk by almost 10 % between 1999 and 2001. This development is a normal result of the highly increased demand and production capacities in the Baltic countries. Windows are now manufactured in industrial production, crowding hand-crafted products out of the market. Inter-Connection expects a price phenomenon typical for some window markets for the Baltic countries: One the one hand, prices for existing products, especially PVC windows, shall still continue to decline, reducing margins of the whole industry. On the other hand, the average price of a sold window unit shall increase, because the products are getting more sophisticated, including state-of-the-art thermal insulation and sun protection.

The window market in the Baltic Countries is definitely a refurbishment market with 79% of all windows sold being used for renovation purposes and only 21% for new construction. This structure shall not change within the review period until 2003.

The IC-MARKET MONITOR Spot(r) WINDOWS IN THE BALTIC COUNTRIES is a detailed market and industry-analysis of the window market in Estonia, Latvia and Lithuania. It contains market figures in terms of value and quantity for the years 1997 to 2001 and forecasts until 2003f. The report is immediately available at the InterConnection Consulting Group.

IC-MARKET MONITOR Spot(r) WINDOWS IN THE BALTIC COUNTRIES EDITION: 2001 SCOPE: 120 PAGES - CONTACT: ING. MARTIN BERGANT - PRICE: Ä 2.000,-
TEL: +43-1-5854623-13 - FAX: +43-1-5854623-30
e-mail: bergant@interconnectionconsulting.com
www.interconnectionresearch.com

Positive outlook for the shopfittings and display industry confirmed by latest SDEA survey
 

The latest survey from SDEA (Shop and Display Equipment Association) reveals that whilst no records have been broken, a positive upwards climb continues to be experienced within the industry - 40 per cent of members reported an increase in sales, 36.4 per cent registered similar results and 23.6 per cent recorded a decrease over the last six months when compared with the previous six-month period.

Although these figures are not as good as those reported six months ago, they are in fact indicative of seasonal patterns. When figures were compared with the same period in the previous year it was found that 51.7 per cent had experienced an increase in sales while 37.5 per cent indicated no change and just 10.7 per cent recorded a down turn. This result clearly indicates that many more companies are now experiencing healthier times.

Similar results were also recorded with companiesí forecasts for the next six months ñ 55.4 per cent anticipated an increase in sales and still only 10.7 per cent forecast a decrease. These figures were within two per cent of those reported in our last survey. Forecasts for the next twelve months were equally favourable.

Director, Lawrence Cutler commented, "Although these figures are not quite as impressive as those reported in our last survey, the trend continues to be a very positive one with nearly five times as many respondents reporting an increase in sales year on year compared with those reporting a fall. It is very encouraging news for the industry."

These prosperous times have also allowed companies to take on more staff (31 per cent employed more people in the past six months and 44 per cent expect to increase numbers in the second half of this year) and a staggering 71 per cent managed to hold sales prices.

http://www.sdea.co.uk

One in five companies are using debt to finance growth, says Plimsoll Report

Is it shrewd or risky business gaining market share through funding from banks? With almost half of the entire UK Windows & Doors industry increasing debt last year, remarkably 45% are putting this extra finance to good use.

137 Chancers, named in the Plimsoll Strategic Risk Index of the Windows & Doors Industry, are using debt to gain market share. Last year these Chancers increased sales by almost 2 times the industry norms, capturing extra market share. Yet they are carrying nearly two and a half times the level of debt as their competitors.

Perhaps it is no surprise that almost almost two thirds of these companies are at high financial risk according to Plimsoll's own rating system.

However risky it might sound, it seems a popular strategy. 'Taking other people's money and using it to generate a profit is great in the good times,'says David Pattison, Senior Analyst at Plimsoll. 'The dilemma for these companies is that they will need to keep charging a price premium to
finance the debt.'

Clear evidence that they are buying market share is seen through their current margins. Current profits of these Chancing companies is very low making a profit of only 2.6% on sales compared to the industry average profit of 3.1%. Adding back interest payments profitability is healthy at 4.4% well above the industry average. It seems their strategy is finding reward.

Perhaps of greatest surprise is that it's the larger players in the industry that seem particularly drawn to this risk strategy with 36% of the Chancer companies having sales above £10 million.
Over a third of the companies in the industry with sales over £10 million have been named as Chancers in the analysis.

Last year the industry only saw sales increase by 7%. There is little doubt that companies will associate this level of market pressure with a recession as the market simply cannot sustain this level of behaviour.

Other companies in the Windows & Doors analysis are also considered and named as the 173 shown as having a losing strategy; the 171 named as Winners and the 140 Sleepers of the industry.

These latest findings from Plimsoll Publishing covering 621 companies has revealed 4 types of strategy that the UK Windows & Doors industry will be using next year.

Call 01642 257800 for more details or to order the report for £305.00.
www.plimsoll.co.uk.
Readers of The Gl@zine can claim a 5% discount when mentioning this article upon ordering.

Hallmark invests to cope with 25% growth per annum

With the Hull-based panel manufacturer Hallmark Group enjoying 25% growth per annum for the past two years, significant investment has been made to the company's infrastructure to take advantage of a surge in demand within the quality end of the home improvement market, together with healthy refurbishment activity in social housing.

The Hallmark Group was established 21 years ago as Laminated Supplies Ltd, which continues to manufacture custom composite panels for the general construction industry. The group also comprises Hallmark Panels Ltd, a manufacturer of residential door panels and includes GRP Manfacturing who distributes its products through Hallmark Panels.

To increase both the manufacturing capacity of the company, and to improve storage, handling and logistics, the Hull site has seen the construction of two large extensions. Additionally, a new vacuum former costing £100,000, together with other additions to the production line brings the investment to over £250,000 in the past 18 months. Ongoing developments, including new Mercedes delivery vehicles to extend the company's own delivery fleet, will extend this sum considerably over the next year.

Sales Director John Rolland was bullish about the company's future: 'We detected that the market was seeking higher quality and we invested accordingly, and are now reaping the rewards by delivering over 99% of our products on time every time. We are delighted that there is a significantly higher demand at the quality end of the market, in which customers expect better products and service levels. Our customers will continue to notice the benefits in their own businesses.'

Tel: 01482 781111; Fax: 01482 701185

Email: sales@hallmark-panels.demon.co.uk

Asset gets £5m boost following agreement with Housing Assoc

A £1 million a year, five-year partnering contract has been agreed between Norfolk-based Broadland Housing Association and Asset Manufacturing plc for the supply of double glazed doors and windows.
The exclusive agreement starts next April and will follow on from a successful three-year partnering scheme that Broadland awarded to Asset.

The new deal means that Asset, which has its factory in Thetford, Norfolk and its sales office at St Ives, Cambridgeshire, will supply Broadland with double glazed units for new housing and for existing properties as they are refurbished.

Asset's Managing Director, Jack Walters, said: 'This is wonderful news for us. We are delighted to be associated with Broadland Housing Association for the next five years. I would like to thank everyone at the Association for their assistance over the past three years and for the confidence shown in agreeing to work together for the next five years.'

The company's Operations Director, Alan Powell, said: 'This is a tribute to the whole team at Asset and once again refects the quality and value of our products and our installation service.
'It continues a very successful year for us and, together with our recent successes in securing a number of large contracts with local authorities and other housing associations, ensures that we will have a fully busy factory for a long time to come. The word recession is not used at Asset.'

Robert Leathers, Broadland's Estates Manager, said the Association had grown in recent years and now had a mixed portfolio of 3,500 homes spread right across Norfolk and Suffolk, from King's Lynn to Norwich, Great Yarmouth and Lowestoft.

'We have family homes, flats, sheltered housing and recently, frail elderly schemes. Under the arrangements we have agreed, Asset will be providing us with the latest double glazed doors and windows on an exclusive basis.

'Asset has recently completed projects in Norwich and Dereham and has further works planned for us in these areas as well as in Great Yarmouth and Oulton Broad in the coming year.

'Tenants will gain the benefits of better heat and noise insulation and we will gain cost savlngs from much lower levels of maintenance over the years,' he said.

email: info@asset-manufacturing.co.uk

Tel: 01905 797797; Fax: 01905 794436

Eynsham Group on Acquisition Trail

The newly formed Eynsham Group has just completed the acquisition of Oxford based 3D Aluminium and 3D Aluminium Plas, advised by leading independent corporate finance house, TMG Corporate Finance, based in Manchester.

Gary McCartan, managing director, and Mike James, sales and marketing director, both previously senior managers with Epwin, have founded the Eynsham Group to establish a number of fabricating companies operating through the commercial and trade sectors.

'We are looking to build a fabrication group which focuses on niche sectors, drawing on combined management and buying resources so that we can concentrate on providing the highest level of customer service.' explains Gary 'We chose to work with TMG because they have a great reputation in the finance industry and particularly valuable experience in the window sector.They also shared our vision for the future. We are currently working on two other targets in the trade window sector and are actively seeking other complementary businesses. This offers potential for existing owner managers to enjoy a controlled exit opportunity and will enable us to build a strong network of businesses throughout the UK.'

For further information contact Gary McCartan Tel 01885 881403.