Welcome to THE GL@ZINE News 19th October 2004

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Ultraframe Streamlines UK Business to Meet Changing Market Conditions

Ultraframe, the UK‚s leading manufacturer of conservatory systems, has today announced that it intends to streamline its UK business. This is part of a wider Operational Review as Ultraframe reshapes and restructures its organisation to focus on meeting the needs of its customers.

"Ultraframe continues to invest in its Clitheroe plant and in driving efficiencies both through technology and process improvements. We also want to empower our employees at every level to improve the speed of decision making and with it customer service. Our new structure will reflect this", said UK Managing Director, Vanda Murray OBE.

"Our industry is changing rapidly, as are the requirements of our customers, and we have to recognise and adapt our organisation to that. Regretfully, a small number of jobs will be lost during this process, but we will emerge as a stronger business. Our customers‚ needs are of paramount importance and it is in their interests that we are in the best possible shape and structure to meet the challenges ahead".


Deceuninck Turnover up 4% in Third Quarter but Warns of Raw Material Price Rises

Group Deceuninck, a worldwide manufacturer of PVC window systems and profiles for the construction industry, announced on 14th October that its turnover in the third quarter rose by more than 4% to 160.2 million euros compared with the historically strong third quarter of 2003. For the first time since the acquisition af Thyssen Polymer the quarter is comparable with 2003. After nine months of 2004, Deceuninck has achieved a tumover of 440.9 million euros as against 325.1 million euros in 2003, which represents an increase of 35.6%. Volume rose by 7% which, on an annual basis, comes down to a growth in volume of 10% (excluding Thyssen Polymer in the first half). The negative impact of the currency on the turnover amounts to 3.2% and is above all things due to the difference in exchange rate of the US Dollar and the Turkish Lira against last year. On an annual basis the impact on the group turnover amounts to 3.4%.

Pronounced Regional Differences

Western Europe
Western Europe did particularly well with an increase in turnover of over 10%. What is striking in this is the resurgence in the United Kingdom where the two branches together clocked up an increase of more than 10% in the third quarter. In the Belgian market too, Deceuninck did very well with an increase of 14% in the third quarter. The French divisions maintain their good results with a turnover increase of 9% on an annual basis.

Deceuninck ascribes its striking growth to a definite increase in building activity. Besides this there is also the success of the new Zendow window concept that is currently being launched in almost every market.

In the German market the recovery in the first quarter was unable to maintain its momentum. Deceuninck operates in this market only with its Thyssen Polymer division. In the third quarter sales stagnated, which nonetheless means a growth of more than 5% on an annual basis.

New EU member states
As expected, a definite decline in sales in the new EU member states was observed in the third quarter. After the hoarding effect before 1st May - the date of accession whose effects included an increase in the rate of VAT in Poland from 7 to 22% - sales activity is now going more steadily again. In any case, after nine months there still remains an increase in turnover of more than 1O%.

Turkey

Once again there is positive news from Turkey. Just as in the first half, an increase in volume of more than 50% was again observed in the third quarter. The continuing high growth in turnover is explained by the tremendous construction and export adivity by Turkish businesses. In order to cope with the greatly increased demand, Ege Profil, the Turkish division of Deceuninck whose head office is in Izmir, is studying various scenarios for expanding capacity in the short term.

United States

Adivity in the United States has not yet managed to achieve the growth level of 2003. Deceuninck North America ascribes this to the tendency of industry to bide its time during the run-up to the presidential election next month. In the third quarter, turnover rose by 2.9% in USD.

Strategic Projects
The strategic projects 'Russia' and 'wood composite products' continue to develop favourably and are proceeding according to plan.

In Russia, sales outlets have now been opened in St. Petersburg, Ekaterinenburg, Rostov and Novosibirsk in addition to the office in Moscow. It is expected that by the end of 2004, 200 window manufacturers in Russia will already be producing windows out of PVC window systems from the Deceuninck group.

Plans to begin small-scale production of window systems in Russia in the second quarter of 2005 in order to offset the high taxes on imports are steadily taking on a more concrete form.

After the delay in the first half, the production of wood composite decking in the United States has got up to speed. Production has been going on apace since the beginning of August.

In the meantime Deceuninck in Europe has been working feverishly on preparations for the iaunch of the first wood composite products. It will be wood composite cladding that will be distributed via the sales network in Benelux at the beginning of 2005.

Raw materials prices
The rising prices of PVC resins and additives nevertheless remain a matter of more than ordinary concern. The passing on of increased raw materials costs to customers announced by Deceuninck in June was put into effect as from August. The initial impact on margins will only become plain in the fourth quarter. Despite the historic high at which PVC resin prices currently find themselves, the trend for the fourth quarter continues upwards. Consequently, Deceuninck does not rule out the announcement of a second increase in prices to its customers.

Deceuninck is an integrated group of world format, specialised in compounding, design, development, extrusion, finishing, recycling and injection moulding of PVCu systems and profiles for the building industry. The company is active in more than 32 countries, has 23 subsidiaries (production and/or sales) and is supported by 2740 personnel, 640 of them in Belgium and 900 at Thyssen Polymer. In 2003 the Deceuninck Group achieved consolidated sales of 470 million euros (including 6 months consolidation of Thyssen Polymer).

Web: http://www.deceuninck.com


New £9.5 Million Veka Distribution & Logistics Centre the Most Advanced in the Industry

Extruder of window and door systems Veka plc has completed work on an advanced Distribution and Logistics Centre, to more than double the size of its Burnley, Lancashire site to 400,000 feet The development represents an investment in the UK operation of £9.5 million.

The facility has been built to a specification developed by Veka to raise distribution speed, accuracy and quality to new standards for the glazing industry, and to keep pace with 35% growth in the last three years, and a similar increase in business anticipated by 2006, and makes Veka’s Burnley site the second largest in the Group. All of the company’s warehousing and distribution operations are now housed on a single site, though with manufacturing and logistics located in separate buildings. Around 100 additional jobs will eventually be created by the project, when it comes on stream fully early in 2005 following extensive trialling.

The Veka Distribution and Logistics Centre has been designed and built to incorporate the latest state-of-the-art systems, and is regarded as one of the most advanced anywhere in the UK. Fully computerised, product is moved from the manufacturing facility to the Distribution Centre by a fully automated monorail conveyor between the two buildings.

3000 profile stillages may be stored in the high bay facility of the Distribution Centre, with a total site capacity of 6000 stillages. Two cranes automatically load the stillages, centrally controlled by Veka’s central SAP management system, offering a dramatic increase in accuracy and speed while also further reducing the risk of damage to product during loading.

The rules of logistics are re-written by the new Veka facility; using conventional methods operators will walk around selecting product and bring it back to the picking area, operating at a speed dictated by them. The new system delivers stillages to any one of four pick stations, at a speed of one per crane every 75 seconds. Thus the system dictates the speed of the process, allowing greater efficiency, but also dramatically more efficient planning, order tracking and forecasting. Up to three articulated vehicles may be loaded simultaneously, and under cover, further optimising the system and protecting product from the elements.

Veka plc managing director Peter Abbott commented: ‘We have achieved very substantial increases in business during the last three years, something that is all the more impressive in a difficult and highly competitive climate. This is a major milestone in the development of Veka in the UK, and may be viewed by our customers as a commitment to them to provide unrivalled products and support for their businesses. Few if any other companies in the industry continue to make such a commitment to the market. We are now well placed to capitalise on the success we are enjoying, and have forecast for the future.’


Synseal First to Manufacture an Entire Conservatory –Including the Components

Long supply chains are bad news for any end user. The more hands a product has to pass through, the more costly and cumbersome the route to market. All supply chains are not the same, some are very long so the product costs more – every supplier adds its margin – and the longer the supply chain the greater the possibility for disruption. By eliminating these steps in the chain and middlemen’s margins that go with them, both margins and service can improve. This is something Synseal Extrusions Ltd aims to do. ‘The shorter the route to market, the better for our customers,’ explains Carl Wilkinson, Injection Moulding Manager of Synseal. ‘Now our new injection moulding plant has cut the final supplier out of the chain. So everything you see on the conservatory roof is manufactured by Synseal.

‘Synseal implements tight quality control procedures throughout every part of the organisation,’ continues Carl. ‘This is particularly important at the production stage. Bringing the injection moulding in-house, allows even more control over the process, rather than having to rely on external suppliers. Bringing it in house also means Synseal customers benefit from more consistency, because it eliminates the need to outsource to several different plants across the country. And now that we’re self sufficient in this area as well, we can develop new products from the initial idea to stock, even quicker.’

Tel: 01623 443 200


New Faces at UK's Premier Glass and Window Shows

Emap Maclaren has appointed Chris Reynolds as Sales Manager to further develop the increasing interest shown towards Glassex 2005 exhibition, which is being held at the NEC Birmingham from 13th to 16th, March 2005.

Chris is fully conversant with Glassex, having been previously an Area Sales Manager for this year’s event. He gives added value to the Glassex team with a long career involved with the organisation and promotion of various major exhibitions in business-to-business and retail markets, both in the UK and overseas.

A keen cricketer and member of the MCC, he is currently chairman of the Old Freemen’s Cricket Club and has an active personal life as Councillor in his local district council having won his seat earlier this year, and governor of a local primary school.

 
Chris Reynolds and Lesley Stevenson

To maximise the full potential of next year's GP&T 2005 Exhibition Emap Maclaren has appointed Lesley Stevenson as its new Sales Manager for the event, which will next be staged at the Birmingham NEC from 17th – 19th May 2005.

Lesley brings to Emap Maclaren a wealth of experience in publishing, conferences and exhibitions having previously worked for one of the world’s largest media companies, where she was Group Sales Manager responsible for the sales and marketing of a leading business-to-business journal.

The skills Lesley developed in this role will ensure that GP&T realises its true potential, having won a prestigious exhibition industry award for the trade show launch of the year and, perhaps more importantly, exceeded the expectations of exhibitors and visitors alike at the debut in November 2003. Lesley joins at a good time, with stand sales already ahead of the total exhibition size for the show, with more than seven months to go.


Eurocell Building Plastics Barnsley and Swansea Depots Now Open

Eurocell Building Plastics, the network of trade centres, has recently opened its 57th and 58th branches. The latest branches at Swansea (pictured) and Barnsley have added further quality to an already enviable network of EBP centres and sub-stockists.

‘It is important that we have a strong presence throughout the UK to serve the growing building plastics market. Our network of centres has been a considerable success and these two additions should continue along the same theme.’ commented David Salt, Sales Director. Eurocell Building Plastics.

Eurocell offers both the new-build, replacement and the strong UK DIY markets a comprehensive range of PVCu building products. The product range includes Eurocell Roofline fascias, soffits together with windowsills, boards, trims, cladding, Soudal silicones, and tools as well as Eurocell’s Pinnacle traditional and modular conservatory roofing systems. All Eurocell roofline and cladding products have BBA approval and are manufactured in accordance with ISO 9002.

Tel: 01773 842 100
Email: mailto:marketing@eurocell.co.uk
Web: http://www.eurocell.co.uk


Anglian Launches Dedicated New-Build Facility

Anglian Windows Group — manufacturer and installer of PVCu windows, doors and conservatories — has invested £4 million in a new facility specifically dedicated to the new-build market. The 57,000 sq ft factory, located at the Mayfield Centre in Rochdale, Lancs, will be dedicated solely to the manufacture and distribution of windows and doors for UK house builders, and is already capable of producing around 2000 units per week on a single shift. This, of course, is on top of the current 14,000 units per week product capacity making a total of 16,000 products per week.

The Rochdale facility is the new manufacturing home for Anglian Tradelines Division, the arm of the company dedicated to new-build customers. The division already counts some of the UK’s top house builders amongst its regular customers, including industry leaders George Wimpey Homes, Persimmon, Taylor Woodrow and Bellway Homes. The new factory will see closer links established between the manufacturing and distribution aspects of the Tradelines Division, and forms a vital part of the development of Anglian’s new-build strategy, offering an enhanced service to house builders.

Considerable investment — around £1.5 million — has been made in a new automated production line for the manufacture of white and foiled profile doors, tilt/turn and casement windows. The new line can produce up to 600 units per week in one shift. A state of the art computer-controlled cutting facility has been installed in addition to an advanced welding and cleaning line, allowing 0.2mm weld restriction for a superior quality finish. One of the key benefits of this line is the automated production of double doors providing a high quality end product. This is all brought together using a sophisticated tracking system that provides real time data to the production operatives and management team.

In addition a traditional manual manufacturing line, which provides excellent product design style flexibility, produces up to 1400 units per week on one shift. The dedicated facility will encompass the complete range of Anglian new-build products in a single location, providing more effective collation of jobs, more complete loads and reduced lead-times. Quality is assured, with a dedicated quality control inspection team ensuring complete product traceability from start to finish. The new factory can already produce up to 2000 units per week on a single shift, with potential capacity for 4000+ units per week.

Anglian appreciates that experienced staff are the key to quality production, and chose the Rochdale site as an opportunity to re-locate its loyal workforce from its small former factory in nearby Whitworth. Consequently, the dedicated Rochdale team — comprising 80 staff in total — already has complete familiarity with the specialised new-build product, allowing them to achieve accuracy and with a primary focus on 100% ‘right first time’ deliveries. A dedicated Logistics Manager has also been employed at the Rochdale factory, whilst the Tradelines Division distribution truck fleet will also be based there. Loading of product is conducted using powered lifts to eliminate product damage, and a state of the art product tracking system aims to provide customers with 100% delivery satisfaction.

Stig Hansen, Managing Director, Anglian Tradelines and Manufacturing Division, believes that the new facility will kick-start huge growth for the company’s new-build business:

‘As an industry leader, Anglian already offers a strong brand with a reputation for high quality products and good aesthetics. Now, we can prove to the burgeoning UK house building market that we are a vertically integrated Division and have complete control over all processes: initial design, profile extrusion, sealed-unit manufacture, fabrication, distribution, installation and after-sales care, all under one roof and offered by one organisation. This will be a massive benefit to UK new-build customers.’


Goldshield – the First Warm Edge Manufacturer Customer in the World to Pass CEN1279 Part 3

Edgetech customer Goldshield has now achieved CEN1279 Parts 2 and 3, which are the most relevant parts of the standard to sealed unit manufacturers. Part 3 is a particularly impressive achievement because Goldshield is believed to be the first warm edge manufacturer customer in the world to achieve this part of the standard. Part 3 of CEN1279 is important for the industry because when it is implemented and enforced, anyone making gas filled sealed units will either have to pass this test or stop making them. Companies who currently rely on gas filling to achieve the required legislation will have to stop making gas filled units. They will be forced to look at alternative more costly methods of bringing the u-value of the overall window down to meet the ever demanding legislation.

Mark Goodman, owner of Goldshield explains more specifically why it was important for his company to achieve both parts of the standard. ‘Our standard sealed unit configuration is now soft coated low E glass, argon filled with Super Spacer which was recently tested with a fully reinforced Schuco window and achieved an incredible overall window u-value of 1.4W/m2.K. But we want to expand and felt these certifications were a must to enable us to do that. We’ve passed both the relevant parts for sealed unit manufacturers which means our customers can rely on the highest specification, most energy efficient sealed units available. We’re positioned at the higher end of the market and as these results show, take this position seriously. It’s a bonus that we are the first warm edge manufacturer customer in the world to achieve this part of the standard. We’re thrilled.’

Meanwhile, the results are in for the independent test results from the European testing house for Edgetech’s Warm Edge spacer bar Super Spacer®, and it’s great news for Edgetech customers. ‘We have passed CEN1279 Part 3 with an approved European test house, making us one of just a few firms to pass this challenging test in the UK,’ explains Andy Jones, Sales Manager for UK and Ireland. ‘This part of the standard measures gas loss in sealed units. We’re delighted with this achievement, especially when so many companies that make good sealed units are failing to pass this particular part of the standard. We were confident Super Spacer could meet the standard but this independent certification will reassure those who are not yet sold on the benefits of Super Spacer.’


KEB Announces Gateshead Partnering Agreement

Following recent successful partnering schemes in Birmingham and Liverpool, KEB Fabrications Limited has been awarded another major social housing refurbishment project, valued at £1 million a year for The Gateshead Housing Company. This ‘Arms Length Management Organisation’ is wholly owned by Gateshead Council but acts independently and is responsible for the management and maintenance of more than 23,000 properties throughout Gateshead.

KEB Fabrications has entered into a five-year partnering agreement with main contractor, Frank Haslam Milan & Company Limited to supply and fit replacement windows. The highly specified windows, manufactured from the Profile 22 system and fitted with hardware from Yale and Securistyle, will be used in the refurbishment of more than 9,000 dwellings as part of Gateshead Council’s commitment to provide Decent Homes by 2010.

With social housing schemes throughout the UK, KEB Fabrications maintains a policy of recruiting and employing local labour wherever possible. Explaining this policy, Garry Lacey, KEB’s Financial Director commented ‘Employing local labour is a winning result for the community, the client and KEB. Local knowledge of the area assists householder liaison, benefits project efficiency and ensures that KEB Fabrications delivers best value, in keeping with our philosophy of being a national company with a local feel’.

Tel: 0121 555 5533


TriSeal™ gives European Fabricators a New Competitive Edge

As the latest GGF testing confirms the benefits of warm edge technology, Edgetech is introducing its new Super Spacer® TriSeal™ at November’s Glasstec exhibition in Dusseldorf. TriSeal™, to be demonstrated to fabricators on a fully-automated TriSeal™ Lisec line, features proven no-metal technology already used worldwide in more than a billion feet of Super Spacer®.

As independent results show, the new product easily outperforms aluminium spacer on thermal performance, condensation resistance and glass surface temperature. Like aluminium, TriSeal™ can be used with structural and captive glazing too. TriSeal™ is also compatible with fabricators’ usual silicone structural sealant and other secondary sealants for captive glass.

The unique triple-seal design of TriSeal™ uses an inner acrylic adhesive seal for immediate unit handling. A captive polyisobutylene primary seal gives enhanced gas retention and low-moisture vapour transmission. An outer structural seal gives proven structural glazing performance. Desiccated silicone foam, acrylic adhesive and a multi-layer vapour barrier give excellent UV resistance, colour stability, extreme temperature performance, fast dew-point drop, superior compression-set resistance and enhanced sound dampening – helping fabricators satisfy the most demanding customers.

TriSeal™ also gives fabricators the benefits of easy fabrication and compatibility with existing equipment, materials and fabrication practices. Advanced technical performance ensures that fabricators’ customers enjoy the benefits of the latest warm edge technology. And moving from other spacers to TriSeal™ is easy, so fabricators can quickly put TriSeal™ to profitable work in their marketplace.

Speaking before the launch, Andy Jones, Edgetech Sales Manager for UK and Ireland says: 'Following its successful launch in North America, TriSeal™ is set to help meet European fabricators’ needs for residential, commercial and structural glazed insulating glass markets.'

Synseal’s Showroom Showcase

Wolverhampton based UPVC Warehouse is always on the look out for innovative products with great potential. It was among the first to take Synseal’s Shield Conservatory System and now has a 5,000 sq ft showroom to display the product.

John Robinson, Managing Director of UPVC Warehouse comments: ‘Our showroom is in a good position, located on a busy bus route and right next to traffic lights. We’ve hung flags outside to attract attention too. The latest addition to the showroom is 14 full sized conservatories, showing off different styles and finishes.
The conservatories are furnished so that customers can see the end result. You wouldn’t buy a car without a test drive, and buying a conservatory is not really that different. Our customers can see what they are getting right down to the flooring. They can sit down and have a cup of coffee and feel at home. We don’t have to sell anything. Our customers buy from us.’

John started as a window fitter 21 years ago with £500 he borrowed from his granddad to buy a van. With products like Synseal’s he has grown to a £2 million turnover. UPVC Warehouse has been with Synseal for eight years. ‘Synseal has such an edge on competitors because everything in the system is designed to fit together,’ explains John. ‘Synseal is so easy to deal with. One phone call, one invoice and one delivery. And then there’s the amazing marketing support. Long may it continue.’

Tel: 01623 443 200
Web: http://www.synseal.com


Listers Launch gets Off to a Speedy Start

Lister Trade Frames of Stoke-on-Trent celebrated the launch of its new customer brand with a competition to find the fastest 'beader' in the West.

Over the two-day launch of the new 'Elitis' brand, customers from across the Midlands were invited to pit their wits against the clock on a window featuring sculptured profile from WHS Halo, Lister's new system supplier.

In what was an extremely hard fought competition, Tony Frost of Lynton Windows Stoke proved to be the winner, having successfully beaded the new 1000mm by 1200mm dimension window in a staggering 8.63 seconds.

Commenting on the event, Listers Managing Director, Mark Warren said: 'The fact that the top ten winning times were all under twelve seconds bears testament to the versatility of the new profile we've taken on board. There are a number of sculpted systems available on the market but we wanted to offer our customers something extra that would work harder for their businesses.'


Sam Kennedy and Mark Warren

In addition to the sculptured profile, the new Elitis support package gives Lister customers the opportunity to differentiate themselves from the competition by offering the provision of customised websites, high quality brochures, customer facing sales materials, and advice workshops.

Sam Kennedy, sales and marketing director for WHS Halo, concludes; 'Lister's ethos of working in partnership with its customers to develop their businesses very much mirrors our own philosophy. Judging by the feedback of the hundreds of installers who visited the company over the two days of the launch, we look forward to working with them on what promises to be a highly successful initiative.'

Founded in 1976 Listers currently operates out of two sites in Stoke-on-Trent (Leek Road, Hanley and Govan Road, Fenton), employs 115 staff and currently produces around 700 frames per week for customers across central England and Wales.

Email: mailto:mark.warren@listertf.co.uk


Profile Wrappers Strengthens Expansion Plans

Midlands based laminating company Profile Wrappers Ltd has strengthened its plans to significantly grow its business in the next five years by investing in additional staff and machinery to increase production capacity.

The company, which was bought by a management team headed by Graham Morrell a little over a year ago, now employs 57 staff compared to 36 when it was first acquired.

Profile Wrappers specialises in applying foils to a wide range of materials including PVCu, aluminium and steel substrate typically used in the window, conservatory, door and building industries.


Graham and Charmaine Morrell, Profile Wrappers

Prior to the management buy-in Profile Wrappers operated with limited capacity but with an increase in demand for its services together with the management’s aggressive growth strategy, the need to improve output became a paramount concern. So the company has extended its hours of operation, introduced a twilight shift and in doing so has increased production capacity by 75%.

Commenting on the expansion Graham Morrell said, ‘As niche market players providing a specialist service to an international customer base we are determined to remain at the forefront of our field. That not only means exceeding our service guarantee but also investing in future technology and capability. We are seeing more and more interest from customers who recognise the benefits of outsourcing the wrapping of plastic extruded and rolled profiles and to this end we are currently developing and trialling some very exciting processes which will deliver significant cost savings to our clients.’

Graham continues, ‘We are delighted with the progress we have made during our first year of trading. One year on the management and staff are even more committed to growing the business. We seek to become an acknowledged leader by developing new opportunities which will in turn stimulate revenue growth in the markets we serve and plan to serve.’

Tel: 01827 262024
Email: mailto:g.morrell@profilewrappers.com


Eastern Promise for K2

K2 Conservatory Roof Systems has scored a major coup in its expansion plans into Asia by securing a supply deal with House Component in Bangkok, one of Thailand's largest suppliers of conservatories, PVCu windows and doors.

The £0.75m deal will see K2 supplying K2 conservatory roofs, which will be fitted to the windows and doors already manufactured by House Component, in order to develop a private label conservatory system. The new House Component branded range will be sold across Thailand over the next year, but the company is planning to expand across South East Asia in the future.

Comments Sally Fielding, Managing Director of K2: 'We are delighted to partner with such a high profile company as House Components in order to gain entry to the lucrative East Asian market. The company has an enviable reputation and we are delighted that it has chosen K2 as its system delivery partner for the new range.'

Sally Fielding continues: 'We already have a growing US operation, based on the dual advantages of our technical expertise developed in the UK and a strong understanding of the American market. The deal with House Components will open a gateway to South East Asia and provide a catalyst for further global expansion in the future.'

Tel: 01204 554554
Email: mailto:enquiries@k2conservatories.com
Web: http://www.k2conservatories.com


Windows of Success for Wakefield Business

One of Wakefield’s untold success stories looks set to achieve even greater successes following the recent announcement about changes to council home ownership in the area.

Metroglaze, the council-run PVC window factory, which already makes 450 replacement windows every week for council properties, hopes to see production increase still further following the vote by more than 20,000 tenants to transfer their homes to a new not-for-profit housing association.

Under the transfer scheme, extra money will be released to carry out further improvements to the housing stock, and some of this will be spent on installing energy-efficient PVC windows made at Metroglaze’s Normanton factory.

‘It is a major boost for what is already a tremendously successful operation, and we’re delighted at the news,’ says Metroglaze manager, Alan Williams. ‘It could secure jobs in windowmaking for the next five years and more.’

Wakefield was one of the first council’s in the country to set up its own PVC window production operation, back in 1985. Since then, Metroglaze has gone form strength to strength, winning industry awards and gaining British Standard kitemark awards for its manufacturing quality.

Based at Altofts Road in Normanton, the 37 strong-team has seen production increase by 50% in the past three years, despite minimal investment in new machinery. ‘We’ve simply streamlined our manufacturing, working with our profile supplier – Derbyshire firm L.B. Plastics – to meet the demand not just from Wakefield, but from other neighbouring local authorities.’Around one third of the workforce is part of the Supported Employment Scheme, which provides jobs for people with disabilities who might otherwise find it difficult to find mainstream employment. ‘We make minor changes to accommodate them, for example providing visual fire alarms for those with hearing difficulties, and some extra safety guards on machinery, but otherwise we make no compromises.

‘People often knock the council, but Metroglaze is an excellent example of an innovative council running an efficient business which delivers real benefits to the local community.’

Tel: 01773 852311


Ian Wood Takes Charge at DHF

Ian Wood, a leading figure in the building products industry, has been appointed chief executive officer of the Door and Hardware Federation (DHF). His role will be to expand the federation and increase the commercial benefits that companies derive from membership.

His appointment follows the retirement of Derek Smith, who has been a prominent personality in the UK industrial door industry for many years.

Ian was managing director at Ingersoll-Rand Safety and Security, formerly Newman Tonks, a group comprising Briton door closers, Legge locks and Martin Roberts steel doors and Dor-O-Matic auto-door systems.

Throughout his career he has held senior management positions at leading UK building products companies, in particular those involved in industrial steel doors, locks, door hardware and steel cladding. His expertise spanned the manufacturing, distribution and service/maintenance sectors. As a business turnaround specialist, he gained a reputation for successfully increasing business growth and profitability.

Ian is a past vice chairman of the Association of Building Hardware Manufacturers which represents the leading manufacturers of building hardware and architectural ironmongery. It was the recent amalgamation of the ABHM with the Door and Shutter Manufacturers’ Association (DSMA), which represents virtually all of the key players in industrial and commercial doors and shutters and garage doors, that brought the DHF into being.

Said Ian Wood: 'Both the ABHM and the DSMA have done a fantastic job in recent years by ensuring that the many new standards and regulations coming into force worked to the benefit of the industry rather than against it. Derek Smith in particular worked unceasingly to protect the industry in the face of increasing regulation.

'Now that most of the standards are in place and members are working to them, my primary role will be to ensure our members can derive competitive advantage by being within the federation. So I’ll be working hard to ensure the federation provides them with added value in terms of increased commercial and technical benefits of membership. That will make the federation more attractive to companies in the door and hardware sectors and will make us an even stronger voice in such forums as the Construction Products Association, the certification bodies and government agencies.”

Tel: 01827 52337
Email: mailto:info@dhfonline.org.uk
Web: http://www.dhfonline.org.uk


Profile 22’s Commercial Expertise Attracts Fabricators

Profile 22 says that its expertise in providing a trusted window and door solution for Housing Associations and Local Authorities is attracting new specialist fabricators to its expanding national network.

As a PVCu systems company for social housing applications, Profile 22 was chosen by a Devon-based fabricator to help it expand its thriving contracts with several social housing suppliers.

H & L Maintenance, an experienced fabricator working in successful and established partnerships with several Local Authorities, was specifically seeking a systems supplier that could offer the relevant support and backing to help it achieve its plans for growth.

With its specialist team dedicated to supporting the needs of clients, contractors and residents, Profile 22’s complete solution and project management approach fitted the bill perfectly for the Ivybridge fabricator. The directors recognised that the company’s sustained growth in the commercial sector, particularly in school and factory refurbishments, could be taken to greater heights with a knowledgeable systems supplier and a fully accredited quality system.

H & L’s Managing Director, Huw Davies founded the company in 1996 with wife Lyn, initially concentrating on maintenance repairs and service calls in the area on behalf of a major glass manufacturer. ‘With the repair side growing, it quickly became apparent I needed to take on additional service engineers and a fitting team,’ says Huw. ‘From there, we started buying in frames and four years ago decided to start fabricating to gain greater control over quality and delivery issues.’

Huw and Business Manager Paul Downer are clear about where they want to take the company, and how. The company already partners extensively with Mid-Devon District Council – awarded the coveted ‘Beacon’ status in April 2003 - on a number of refurbishment contracts to help the council meet its Decent Homes targets by 2010.

Beacon status is awarded to councils which display excellence and innovation in specific service areas. The beacon scheme provides a stimulus to other authorities who are seeking to improve, and identifies tools and techniques that underpin service improvement in line with the principles of Rethinking Construction.

Through its links with the council, H & L was among the first companies to join the South West Construction Best Practice Club, which aims to disseminate and demonstrate the principles of best practice throughout its members and the wider construction community in the area.

Embracing the Project Partnering approach to its local authority work has proved successful for H & L with a number of contracts both secured and renewed with local social housing providers who are increasingly looking to enter into partnerships with their local suppliers.

‘Partnering is based on trust and open communication between all parties and we have found this spirit of co-operation beneficial in ensuring the positive outcome of projects to the satisfaction of all parties involved,’ continues Huw. ‘The security of a guaranteed future orders book has enabled us to plan ahead and invest with confidence.

‘If we want to grow any further, particularly in the schools and social housing refurbishment sectors, we need a supplier which is active in this sector with the specialist knowledge and contacts to help us progress.

‘Coinciding with our switch to the Profile 22 system is substantial investment in new machines in preparation for our next level of growth. We’ve always used a quality system and maintaining a similar quality was a crucial element when we were looking to change. Profile 22 more than meets our criteria for excellence and backup. We’ve had a tremendous amount of support, from help with tooling to advice on marketing and literature.’

Practical help with new letterhead and vehicle livery designs together with a bespoke trade mailer has also helped H & L get its business growth plans off the ground. Having grown the company as far as they could, Huw and Paul are finding the expertise from their new systems supplier invaluable in giving the extra impetus needed to gain targeted new business.

For Walter Longden, Building Manager at Mid Devon District, the partnership has brought about significant cost-savings and improvements in working practices. He explains: ‘With partnering, we have found there is more ownership for all the parties involved in terms of outcomes. As we both ‘own’ the specification, we can give H & L greater flexibility to enhance it giving us better value or a better specification without necessarily increasing the price.

‘The company has also provided ‘toolbox talks’ for our fitters, clarifying technical aspects of fitting and surveying which has resulted in consistency of quality throughout projects,’continues Walter.

Cost savings have been achieved throughout the partnership. Walter adds: ‘The continuity of the contract has enabled H & L to pass on keener prices to us and we have achieved major savings on what we would expect to pay. We are seeking through procurement to add value to all our contracts and we see the way forward is to engage in strategic partnerships with our suppliers.’

Tel: 01952 290910


OFT Study of the Impact of Public Sector Procurement on Competition

The OFT has published preliminary research into the impact of public procurement on competition. It contains an in-depth economic analysis of the relationships between public procurement and competition.  This analysis provides an important framework for assessing the impact of procurement practices on competition in a particular market and will be of value to both local and central Government. 
 
'Assessing the impact of public sector procurement on competition'
In view of the complexity of the issues, the OFT will be working with the OGC to see how the analysis can best be applied in practice, to ensure that the public sector makes the most of competition amongst suppliers. 

The research also uses readily available sector data to highlight areas that the OFT should consider looking at more closely. The OFT is currently considering, in the light of other procurement reviews, what its next steps should be. It will discuss the nature of those reviews with other parts of government and the OGC in particular, before deciding what action, if any, it should take. The OFT expects to announce its decision early in 2005.

The research also draws on the methodology developed as part of a report on 'Empirical indicators for market investigations', conducted by NERA on behalf of the OFT and DTI.


Alcoa Announces Income from Continuing Operations of $298m in Third Quarter

Alcoa announced last week that its income from continuing operations was $298 million, or $0.34 per diluted share, in the third quarter, up from $285 million, or $0.33, in the third quarter of 2003, and down from $405 million, or $0.46, in the previous quarter.

Net income in the quarter was $283 million, or $0.32, down from $404 million, or $0.46, in the previous quarter, and even with $280 million, or $0.33, in the third quarter of 2003.

Year-to-date, income from continuing operations was $1.053 billion, or $1.20, 52 percent more than 2003's result of $695 million, or $0.82. During this time period, the average cash aluminium price traded on the LME increased by 20 percent.

* Income from continuing operations was $298 million, or $0.34 per diluted share, in line with prior guidance;
* Year-to-date income from continuing operations was $1.053 billion, or $1.20, up 52 percent from 2003's result of $695 million, or $0.82;
* Debt-to-capital ratio improved to 32.3 percent, the lowest since early 2000;
* Reached tentative agreement with union on health care package allowing re-start of Wenatchee, WA smelter; strike on-going at Becancour, Quebec smelter;
* Disciplined capital spending, lowering projected full-year capital expenditures to approximately $1.2 billion;
* Continued execution on upstream and downstream growth projects.

The quarter's results were negatively affected by several events, including the previously announced impact of the strike at the Becancour, Quebec smelter and costs associated with the impact of Hurricane Ivan on the Jamalco refinery. The quarter's results do not include the previously announced charge that was expected to be recorded for layoffs at the Wenatchee facility since a tentative agreement with the United Steelworkers of America (USWA) and its affiliate, the Aluminum Trades Council of Wenatchee, was reached that will allow restart of the facility.

'Industry fundamentals and performance in key markets continue to be strong. Our efforts to tackle higher labour and health care costs in North America lowered profitability. We are taking the right approach to ensure competitiveness for the long-term', said Alain Belda, Alcoa Chairman and CEO.

Sales Overview
Sales in the quarter of $5.975 billion rose 12.5 percent over revenue in the third quarter of 2003. Sales were down slightly over the sequential quarter's $6.070 billion, primarily due to lower activity in the company's automotive markets.
Upstream markets for alumina and aluminium remained strong in the quarter, as worldwide demand pushed industry inventories lower. Beyond customary seasonality within some downstream markets, the automotive, consumer packaging and European fabricated aluminium markets saw softness in the third quarter. Commercial transportation and aerospace markets continued to gain momentum.

Higher input costs, particularly energy in Europe and North America, negatively affected several businesses, and the increase in prices for petroleum-derived products, like resin, caused higher costs in the packaging businesses.

Foreign currency translation resulted in a pre-tax loss of $17 million in the quarter. The company's return on capital stood at 8.7 percent on a trailing four quarters basis.

Update on Labour Situation, Hurricane Ivan, and Other Events
As previously announced, the quarter's results were negatively affected by several events, including:

* an on-going strike at its Becancour, Quebec smelter with an impact of $41 million before taxes and $29 million after taxes;
* Hurricane Ivan's damage to the port serving the Jamalco refinery and associated clean-up costs and production losses, with a total impact of $12 million before taxes and $7 million after taxes;
* a fire at the KAMA packaging facility in Hazleton, PA, with an impact of $4 million before taxes and $3 million after taxes;
* charges associated with the closure of the Northwood, OH automotive structures facility with an impact of $4 million before taxes and $3 million after taxes; and
* the anticipated sale of the protective packaging business, with an after-tax impact of $16 million.

In the quarter, the company was able to realise a $35 million pre-tax profit ($15 million after-tax and minority interest) by winding down a favourable alumina tolling arrangement.

Alcoa's Jamalco refinery in Jamaica was not badly damaged during Hurricane Ivan, but the storm harmed the company's Rocky Point port from which the refinery ships alumina and interrupted production. The Jamalco refinery has 1.25 million metric tons of capacity, and is a 50/50 relationship between Alcoa World Alumina and Chemicals ('AWAC') - a global alliance between Alcoa and Alumina Ltd. - and the government of Jamaica.

As a result of the anticipated sale of its protective packaging business, the company recorded a charge of $16 million, or $0.02, in the third quarter under discontinued operations. The sale is expected to be completed by the end of the year.

Cost Savings Programme

Due to the aforementioned higher input costs, higher maintenance expenses and higher spending associated with demand growth, the company did make not any additional gains toward its cost challenge in this quarter. At this point, Alcoa has now achieved $132 million in annual savings toward the $1.2 billion three-year cost challenge. This is Alcoa's third of three consecutive $1 billion-plus challenges, which together have resulted in more than $2.2 billion in sustainable savings. 'We remain confident that we can achieve $1.2 billion in savings over three years through continued application of the Alcoa Business System,' said Belda.

Update on Growth Projects
During the quarter, the company made progress on several growth projects designed to solidify its position as the world's leading supplier of alumina, primary metals and fabricated products.

The company's brownfield refinery expansions in Suriname (Suralco) and Pinjarra in Western Australia are both proceeding well. The Suralco refinery expansion is scheduled to be completed 5 months ahead of schedule and the added capacity will now come on-line in January 2005. Together, those projects will increase AWAC's global alumina capacity by approximately 750,000 metric tons per year.

During the third quarter, Alcoa broke ground on its 322,000 metric ton per year (mtpy) Fjardaal aluminium smelter in East Iceland, the company's first greenfield smelter in 20 years. Upon completion, Alcoa Fjardaal will be one of the most efficient, environmentally friendly, and safest smelters in the world. It is scheduled to begin production in the spring of 2007.

Alcoa began an environmental impact assessment in Trinidad for a 250,000 mtpy smelter there. Alcoa and the government of Trinidad and Tobago signed a memorandum of understanding (MOU) on that project in May 2004, and a final decision on the smelter is expected in 2005.

The company announced that its Brazilian 100 percent equity owned subsidiary, Alcoa Aluminio S.A., will begin expanding capacity at its Sao Luis (Alumar) aluminium smelter immediately. When complete, the expansion will bring Aluminio's share of smelting capacity there to 262,000 mtpy and will increase Alcoa's share of output from the overall smelter from 54 to 60 percent.
Construction of the expansion has begun, with production expected to begin in the third quarter of2005.

Alcoa's 2003 MOU between the company and the government of the Kingdom of Bahrain is no longer in force. Under the terms of that MOU, Alcoa would have acquired a 26% stake in Alba, a Bahrain company that owns and operates an aluminium smelter with 512,000 metric tons per year of capacity. The company and the government were unable to reach mutually acceptable terms to finalise the terms of the MOU, but are continuing to explore other ways for Alcoa to invest in Alba. Alcoa has a 33-year commercial relationship with Alba, under which Alcoa has been the exclusive supplier of alumina to the smelter.

Downstream
The company continues to pursue approval from the Federal Antimonopoly Service in Russia for its purchase of Rusal's Samara and Belaya Kalitva facilities, which will enhance its position as a supplier of rolled and extruded products in Europe. Progress on the Bohai rolling venture in China continues, and Alcoa expects the joint venture to be formed by the first quarter of 2005, subject to government approvals.


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