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Rio
Tinto makes a Recommended all Cash Offer for Alcan
Rio
Tinto and Alcan have announced that they have reached an agreement for
Rio Tinto to make an offer to acquire all of Alcan's outstanding common
shares for US$101 per common share in a recommended, all cash transaction.
The offer represents a total equity consideration for Alcan of approximately
US$38.1 billion.
The offer represents a premium of 65.5 per cent to Alcan's all time high
closing share price of US$61.03 on 4th May 2007 prior to the Alcoa offer.
It also represents a premium of 32.8 per cent to the value of Alcoa's
current offer of US$76.03, based on Alcoa's closing share price on 11th
July 2007.
The combined aluminium product group, to be named Rio Tinto Alcan, will
be a new global leader in the aluminium industry with large, long life,
low cost assets worldwide. The combined Group's access to significant
bauxite reserves, competitive alumina refining, low cost hydro power,
leading smelter technology, and a deep and diverse talent pool provides
an excellent position to capitalise on the favourable demand fundamentals
of the aluminium industry. Rio Tinto Alcan will also have a strong portfolio
of growth projects.
Commenting on the offer, Rio Tinto Chairman Paul Skinner said: This
transaction combines two leading and complementary aluminium businesses,
and is a further step in Rio Tinto's strategy of creating shareholder
value through investing in high quality, large scale, low cost and long
life assets in attractive sectors.
'We believe that Alcan, with its proven operating expertise and unique
set of competitively positioned aluminium assets and power sources, will
be an excellent complement to our existing diversified portfolio. It also
adds to our significant presence in Québec and Canada, where we
have long standing operations in QIT-Fer et Titane, Iron Ore Company of
Canada and Diavik Diamond Mines. We are very pleased that the enlarged
aluminium product group, Rio Tinto Alcan, will be headquartered in Montréal
and led by the current Alcan chief executive officer, Dick Evans.'
Commenting on the attractiveness of the offer to Alcan shareholders, Québec
and Canada, Alcan Chairman Yves Fortier said: The agreed transaction
with Rio Tinto is the outcome of a rigorous and thorough process conducted
by the Alcan board. It achieves all of our stated goals, providing clearly
superior value to Alcan shareholders while remaining true to our core
values and obligations as responsible corporate citizens. In addition
to a very attractive all cash premium, this transaction offers Alcan shareholders
the certainty of a clear path to completion given our relatively limited
operational overlap and a commitment by both parties to an expeditious
close. Importantly, Rio Tinto has agreed to meet Alcan's existing business
and social commitments to Québec and Canada and the Alcan board
has therefore determined that the offer meets the terms of our Continuity
Agreement with the Government of Québec.
Tom Albanese, Rio Tinto chief executive, stated: 'This transaction will
enable Rio Tinto's shareholders to benefit from the quality of Alcan's
organisation and asset portfolio, the favourable demand fundamentals of
the aluminium sector and the synergies and enhanced development opportunities
which the combination of our businesses will deliver. The acquisition
will be value enhancing to shareholders, and we expect it to be earnings
and cash flow per share accretive to Rio Tinto in the first full year.
Rio Tinto intends to retain its focus on mining and metals activities
by the divestment of Alcan's Packaging division, as jointly agreed with
Alcan. The Engineered Products division will be retained with a focus
on managing the portfolio for optimum
value.'
Dick Evans, Alcan's president and chief executive officer, commented,
'With an attractive cost position bolstered by a strong technology portfolio,
complementary refining and smelting assets, and a strong growth pipeline,
the combination of Rio Tinto and Alcan will create a new global leader
in the aluminium industry. We are pleased to have achieved this outstanding
result for Alcan's shareholders while being able to offer compelling opportunities
for our employees as part of an extremely strong, diversified global organisation
with an expanded presence in Montréal. Alcan Packaging will have
better opportunities for development and success following its divestiture
and we will ensure a smooth transition for all involved. As we move ahead
together, we will remain true to our shared values, including commitments
to the environment, health, safety and sustainability, and our focus on
creating value. I am personally delighted and excited by the opportunity
of leading the new larger aluminium group, Rio Tinto Alcan.'
Excellent fit with Rio Tinto's portfolio, strategy and value focus
Alcan has a high quality upstream asset portfolio with a sustainable low
cost position through its excellent access to long life hydro power. In
addition, the Alcan technology and hydro assets complement Rio Tinto's
existing energy and climate change strategy, which is to position the
Group for a future in which carbon emissions will be constrained.
The transaction is expected to create a new global aluminium industry
leader in bauxite, alumina, power, aluminium and technology - with a strong
pipeline of attractive growth projects for the future. Rio Tinto Alcan
would be the largest global producer of aluminium and bauxite, based on
current production, with a defined pathway through the commissioning of
Gove and the committed expansion of Yarwun to becoming the largest producer
of alumina.
The acquisition of Alcan will position Rio Tinto to capitalise on the
strong demand fundamentals of the aluminium sector. The attractive physical
properties of aluminium have ensured its use in a wide range of applications
at all stages of economic development, including construction and infrastructure
development, transportation, and consumer goods and packaging.
The offer is value enhancing to Rio Tinto shareholders based on Rio Tinto's
rigorous project evaluation criteria. Rio Tinto expects the acquisition
to be earnings and cash flow per share accretive to Rio Tinto in the first
full year of consolidation.
Overall anticipated post tax synergies from the transaction are expected
to be around $600 million per year. The combination of the two companies'
existing assets offers attractive opportunities to consolidate ownership
and achieve capital and operational efficiencies.
The geographical profile of the combined businesses will provide an enhanced
platform to exploit future global growth opportunities.
The increased overall size of Rio Tinto following the transaction will
provide the opportunity for a strategic review of all Rio Tinto assets
focusing on those which lack the long term competitive position to belong
in the larger Group.
Board of Alcan recommendation
The board of Alcan, after consulting with its financial and legal advisors
and the Strategic Committee of directors, has unanimously recommended
that Alcan shareholders should accept the offer. Morgan Stanley, acting
as lead financial advisor to the board of Alcan, has provided a written
opinion to the board of Alcan that the offer is fair, from a financial
point of view, to Alcan shareholders.
About the offer
Rio Tinto expects to file the offer and takeover bid circular containing
the full terms, conditions and other details of the offer with the Canadian
Securities regulatory authorities and the Securities and Exchange Commission
of the United States on or about 23rd July 2007.
The offer is subject to a number of conditions including valid acceptances
of not less than 66 2/3 per cent of Alcan shares on a fully diluted basis
and the approval of Rio Tinto shareholders. The board of Rio Tinto has
approved the transaction and has undertaken to recommend the transaction
to its shareholders, at the time of mailing the shareholders circular.
The offer will also be subject to certain customary conditions including
receipt of necessary regulatory and antitrust approvals, including in
the United States, Canada, the European Union and Australia, and the absence
of material adverse changes or effects. The offer is expected to close
in the fourth quarter of 2007.
The offer will be made to holders in France of shares admitted to trading
on Euronext-Paris.
An announcement including the main information relating to Rio Tinto's
offer documents will be prepared and released pursuant to article 231-24
of the AMF General Regulation and will contain information relating to
how and the time period within which Alcan shareholders residing in France
can accept this offer.
The offer will be made to holders in Belgium of Alcan shares and/or certificates
admitted to trading on Euronext-Brussels (the IDRs). A Belgian
supplement, addressing issues specific to holders of shares and/or IDRs
in Belgium (the 'Belgian Supplement') is expected to be approved by the
Belgian Banking, Finance and Insurance Commission. Once such approval
has been obtained, the offer and takeover bid circular can be made available
in Belgium to holders of shares and/or IDRs together with the Belgian
Supplement.
Financing
The acquisition of Alcan will be financed by Rio Tinto through newly committed
bank facilities underwritten by The Royal Bank of Scotland, Deutsche Bank,
Credit Suisse, and Société Générale. The offer
will not be conditional on financing. Rio Tinto's goal is to maintain
a single A rating. The commitment to a progressive dividend policy will
be maintained. The existing Rio Tinto buyback programme will be discontinued.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the
UK, combining Rio Tinto plc, a London listed company, and Rio Tinto Limited,
which is listed on the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral resources.
Major products are aluminium, copper, diamonds, energy (coal and uranium),
gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron
ore. Activities span the world but are strongly represented in Australia
and North America with significant businesses in South America, Asia,
Europe and southern Africa.
The Group's objective is to maximise the overall long term return to shareholders
through a strategy of investing in large, cost competitive mines, driven
by the quality of each opportunity, not the choice of commodity.
Wherever Rio Tinto operates, the health and safety of its employees is
the first priority. The Group seeks to contribute to sustainable development.
It works as closely as possible with host countries and communities, respecting
their laws and customs and ensuring a fair share of benefits and opportunities.
Alcoa
Withdraws Offer for Alcan
Alcoa
Inc. announced on 12th July that it has withdrawn its offer for Alcan
Inc. in light of Rio Tinto's announced agreement to purchase Alcan.
Rio's offer for Alcan strongly reinforces our view of the underlying
value in the aluminum industry and its bright prospects for the future,
said Alcoa Chairman and CEO Alain Belda. However, at this price
level, we have more attractive options for delivering additional value
to shareholders. We will continue to deliver strong results, make targeted
growth investments, trim under-performing businesses, and further enhance
returns to shareholders by resuming our share repurchase program. That
is a better path forward for our shareholders, our employees, and our
communities.
Note on Share Repurchase Plan: Alcoa is reinstituting its share repurchase
programme, which had been suspended while the offer for Alcan was open.
In January 2007, Alcoa's Board of Directors authorised the repurchase
of up to 10 percent of the company's outstanding common stock, or approximately
87 million shares.
BHP
Billiton to Bid for Alcoa?
Anglo-Australian
mining giant BHP Billiton is to decide in the next week or two whether
to bid for U.S.-based aluminum company Alcoa.
Citing unidentified U.S. sources, The Australian reported that BHP had
briefed investment bank Merrill Lynch on its interest in Pittsburgh-based
Alcoa.
The newspaper said speculation increased over the weekend that Melbourne-based
BHP Billiton could offer around $55 (U.S.) a share for Alcoa.
Alcoa had about 869.5 billion shares outstanding as of May 4, a regulatory
filing showed. At $55 a share, that would value the company at $47.6 billion.
BHP Billiton and Alcoa declined to comment on the report.
Alcoa withdrew its $28 billion hostile takeover bid for Canadian competitor
Alcan Inc. after mining giant Rio Tinto bid $38.1 billion.
Listers
Puts Extra Fizz Into G07
Previous
award-winner, Lister Trade Frames, is literally putting extra fizz into
this year's G07 Awards. The Staffordshire fabricator has joined Bohle
in sponsoring the Champagne Reception at the Presentation Gala Dinner
on Friday 12th October at the Hilton Birmingham Metropole, NEC Complex.
Listers was named Fabricator of the Year in 2005 and scooped the Training
and Development Award last year - and the successful company could be
looking at a hat trick if it picks up a prize for any of its entries this
year.
Listers MD, Mark Warren, says the Champagne Reception is a great way to
get this prestigious occasion off to a sparkling start, 'It provides an
ideal opportunity to meet up with old friends and make new contacts before
the main event of the evening gets underway.'
Mark Warren is an enthusiastic supporter of the G-Awards Scheme because
he says it promotes all the positive aspects of the glass and glazing
industry and the achievements of the people who work in it. 'We decided
it was time Listers took a more active role by becoming a sponsor - and
I don't think it matters whether your company wins an award or not, you
can still enjoy an entertaining evening and share ideas with the very
best in the industry.'
You can find out how your company can enter for this year's awards by
logging on to www.g-awards.com.
Categories cover all areas of the glass and glazing industry, from fabrication
and conservatory installation to customer care, health and safety and
promotional campaigns. The interactive website provides full details about
the event and the different award categories, plus the facility to submit
your entry online.
http://www.g-awards.com.
BBC
Show Gets Into Gear With Pilkington
Pilkington
Planar has been heralded by the BBC as one of the most important
innovations of the last 100 years in a new television programme.
'James May's 20th Century' hit our screens in July on BBC2 and puts to
the test some of the biggest developments in industry over the years.
In one episode, Top Gear presenter, James, travels to the Pilkington research
and development centre in Lathom to discover just how far glazing technology
has progressed. For the show's car mad presenter, there was only one way
to test the strength of the glass; to drop one of the most iconic cars
of the 20th century, a Mini, on to it.
Tim
Morgan, Technical Manager, Pilkington, was involved with the production
of the show, he explains: 'The episode demonstrated how the strength and
flexibility of glass has developed over the past 100 years by the use
of ever improving toughening and laminating technologies. At Pilkington
we are now making glass designed to withstand earthquakes, hurricanes
and fire as well as man-made hazards such as bombs. Such levels of extreme
performance would have been considered virtually impossible at the beginning
of the 20th century.'
'As far as the car drop test was concerned, after calculating the kerb
weight and the height from which it was going to be dropped, we were confident
that a sheet of 2m x 3.6m Pilkington Planar( laminate would easily take
the strain. The glass laminate consisted of two layers of 10mm Pilkington
Optiwhite with a Sentry Glas Plus interlayer.'
Before the 15 year old, 640kg Mini was dropped, the glazing underwent
some vigourous and unusual methods of testing Tim continues: 'One of our
development engineers hit the glass with a hammer, and then we asked James
May to attack it with a mallet and a 2lb steel engineering hammer - there
wasn't a scratch. Then James decided to jump on it, he invited about ten
other people to join him, and still the glass stood firm.
'For the Mini drop, the car was first hoisted to a height of three feet,
from which it was dropped, and the glass remained unscathed. For the second
drop from five feet, James bet our team £5 that the glass would
break. When the Mini came down, the glass was completely fine and James
had to pay up. We have since decided to laminate our winnings between
two pieces of glass and send it back to James to remind him of the smashing
time he had.
'The programme illustrates that Pilkington is at the forefront of glazing
technology and innovation. The glass was not specially formulated for
the programme, it can be specified and bought by anyone who chooses it.'
For more information visit the Pilkington website at www.pilkington.com/planar.
Yorkshire
Windows Fall Foul of the ASA
The
text of a regional press ad, for windows and doors, which had black and
white chequered borders stated 'Yorkshire and Derbyshire Crime Reduction
Initiative Don't be one of the 733,000* victims of Domestic Burglary Annually'
above a shield logo that stated 'SECURED BY DESIGN'. Text beneath the
logo stated 'Police Approved** During April you can claim a Home Security
Award of £150 per window and £200 per door When you change
windows and doors to high security kitemarked products ONLY from Yorkshire
windows'. The footnote stated '**Secured by design is the ONLY Police
Approved Security Standard'.
Issue
The complainant challenged whether the ad was misleading, because it implied:
1. consumers could obtain a grant for replacing windows and doors, when
in fact it merely offered a discount from Yorkshire Windows and Conservatories
and
2. that the Police endorsed Yorkshire Windows and Conservatories, whereas
they endorsed the 'Secured By Design' standard.
Response
Yorkshire Windows and Conservatories said they were careful not to use
the word 'grant' in the ad and the award mentioned was in the form of
a discount. They said they asterisked clearly the text 'police approved'
so that consumers were aware that they should read the small print for
further clarification. They said the ad did not say that Yorkshire Windows
were police approved. They said they were listed as an approved supplier
on the Secured by Design website and that they believed they had followed
the requirements of the Secured by Design brand manual, which included
the use of the the logo in the ad.
They said the campaign had finished at the end of April and they had no
plans to run it again.
Assessment
1. & 2. Upheld
The ASA noted the text 'Police Approved' was asterisked to small print
that stated that the Secured by Design standard was approved by the police.
We also noted Yorkshire Windows had Secured by Design accreditation for
their PVCU windows and doors and were listed on the Secured by Design
website as an approved supplier.
However, The ASA considered that the claims 'Yorkshire and Derbyshire
Crime Reduction Initiative' and 'Home Security Award', in conjunction
with the black and white chequered border of the ad were likely to lead
consumers to believe Yorkshire Windows and their 'Home Security Award'
were approved by the police. In addition the ASA considered that, given
the context of the whole ad, consumers were likely to interpret the 'award'
as a grant that could be obtained as part of the 'Crime Reduction Initiative'
rather than a short-term discount offered by Yorkshire Windows on their
products. The ASA considered that it was not sufficiently clear that only
the Secured by Design security standard had been police approved or that
Yorkshire Windows were merely offering a discount on their products. The
ASA concluded that the ad was likely to mislead.
The ad breached CAP Code clauses 7.1 (Truthfulness) and 14.5 (Testimonials
and endorsements).
Action
The ASA told Yorkshire Windows and Conservatories to ensure that future
ads did not suggest that the police endorsed their company or that their
own discounts were grants or third party awards. The ASA advised them
to seek guidance from the CAP Copy Advice team for their future ads.
Windows
Plus Super Centre Chooses Deceuninck
Windows
Plus Super Centre, the trade supplier based in Twickenham, has chosen
Deceuninck as their supply partner for the Deeplas range of building products.
Windows
Plus chose to stock Deeplas by Deceuninck because they had previous experience
of the products and could therefore vouch for its reputation for quality.
Jeff Yates, Windows Plus' Director, says, 'Over the past few years I have
had experience of a variety of manufacturers supplying the trade industry.
During this time, Deceuninck had always stood out from the rest in terms
of overall product quality, product range and service. Having dealt with
Deceuninck indirectly for three years, when we formed the Windows Plus
business there was only really one option for us: Deceuninck. Our customers
have come to expect the highest quality from us and that's what Deeplas
products provide.'
Jeff is also pleased to report that Deceuninck's quality of service matches
the quality of the Deeplas range. 'Whenever you choose a supplier, you
are always a bit concerned that there will be problems during the initial
start up period or that the service won't meet your expectations. I'm
delighted that we have no such problems to report - we have been working
with them for over six months now and the service we have received has
been excellent.'
The trade supplier will be stocking the complete range of Deeplas products
so they can offer the complete solution to their customers. For building
envelopes the range includes Deeplas trims, fascias and soffits as well
as Twinson decking. For interiors they will be stocking the Decor range
of wall and ceiling panels.
Windows Plus have a trade counter at their Twickenham base and offer a
reliable delivery service that covers the M25 area. They also offer an
online ordering facility at their online shop at www.upvcnow.com.
New
Conservatory Showroom For Wye Valley Windows
Wye
Valley Windows has transformed its factory into a new 6000 sq ft indoor
conservatory showroom with the help of conservatory roofing specialist,
Newdawn.
Located
in Whitney-on-Wye near Hereford, the new lifestyle showroom houses five
conservatories all featuring Newdawn roofs and provides visitors with
a one stop shop, offering everything from blinds, flooring and furniture
right through to advice on planning permission and after-sales support.
Andrew Derrick owner of Wye Valley Windows, commented: 'Turning our manufacturing
premises into a conservatory showroom and sourcing our roofs from Newdawn
has been an extremely successful move.'
'We are experiencing demand from homeowners who are looking for companies
that can offer seven days a week after sales support service, which the
smaller builders and 'one-man bands' that have started to carry out installations
cannot offer.
'We are receiving more calls for repair work from customers who have had
a poor quality roof fitted from other companies and in some instances,
we have replaced them with a superior quality roof from Newdawn. We are
also seeing rising demand for glass roofs - around 70% of roofs are now
glass, compared to just 10% previously. Again, the handling costs involved
exclude smaller firms from entering this part of the market.
'We are currently in the process of switching over to Newdawn's new S250
system, which is ideally suited to supporting the heavier glass roofs.
It is only with the support of Newdawn, Wye Valley has been able to take
advantage of these changes in the market.'
Terry Sellars, Area Manager for Newdawn added: 'Despite difficult trading
conditions Wye Valley Windows has developed a profitable enterprise that
is able to adapt and evolve to suit changes in the market. Working with
Newdawn has proven to be a very positive move as the company can take
on ideas and marketing strategies from leading retailers across the UK.'
Newdawn was acquired by Bowater Building Products in 2005. The company
offers a wide range of conservatory roof systems for PVCU, Aluminium and
Timber roofs as well as Sunbrite high performance roof glass.
For more information, please contact Newdawn on 01789 764 444.
Showroom
Openings For Plastmo
Plastmo
Profiles have just opened a new and extended showroom in response to the
number of new customers that have signed up at their Northampton base
for their Vogue, Index, Charisma, Slidex and Rollex systems.
The new showroom represents the perfect environment in which visitors
can appreciate the quality and performance of the systems offered by the
company.
The fully ovolo Vogue suite and the Charisma vertical slider are proving
particularly popular, the latter now benefitting from a number of foiled
options in response to customer demand.
Robert Thiroff, sales and marketing director comments: 'The new showroom
has enabled us to show off our product range in a perfect environment.
We, along with our customers, are proud of our products and what better
way in which to display them.'
The company has also made sure that the showroom can be used for several
new products due in the next few months.
Robert concludes: 'We will be showcasing some of our new products in the
showroom over the next few months, but I can't tell you any more yet!'.
DEM
Secures Top WER Accreditations
Barnsley
fabricator DEM Window Solutions has been accredited with A to C WER ratings
for windows fabricated from WHS Halo's Eclipse and Eclipse esthétique
profiles.
Achieving WER accreditations on both the Eclipse and Eclipse esthétique
window systems is another benefit that DEM customers can take advantage
of when seeking to secure additional profitable business - and complements
the company's existing ISO 9001, Investors in People and BBA certifications.
DEM's A rated windows are WHS Halo Eclipse and Eclipse esthétique
casement windows, in white, featuring argon-filled sealed units constructed
with Pilkington Optiwhite and St Gobain Planitherm Total 1.1 glass and
Edgetech spacers.
Its B rated windows are white and woodgrain WHS Halo Eclipse and Eclipse
esthétique casement windows, again with argon-filled sealed units,
constructed on this occasion with Pilkington Optiwhite and K glasses with
Thermix spacers.
Employing 40 people, and with output being in the region of 500 frames
per week, DEM deals with trade installers nationwide and is dedicated
to quality - both in terms of product and service.
As Managing Director Dave Toulson says: 'Our drive for WER really came
from our customers looking to provide a total package of frames and glass
to theirs. The support provided by WHS Halo was spot on; putting us in
a strong position to meet the demand for increased thermal performance
that our customers are seeing.'
DEM
is focussed on delivering its customers quality frames at realistic prices,
on time, every time, and equipping them with the tools to achieve successful
and profitable sales opportunities.
Tel: 01226 298000
www.demwindowsolutions.co.uk
Alcoa
Reports Record First Half Revenue
Alcoa
has announced second quarter 2007 income from continuing operations of
$716 million, or $0.81 per diluted share, the second best quarterly performance
in the Company's history and completing its best ever first half in revenues,
earnings and cash from operations. 2007 second quarter income from continuing
operations represented a five percent increase from the $0.77 in the first
quarter of 2007. In the second quarter of 2006, income from continuing
operations was $0.85.
Net income for the quarter was $715 million, or $0.81, an eight percent
increase from the first quarter of 2007. Net income for the second quarter
2006 was $744 million, or $0.85.
Highlights:
* Second quarter 2007 income from continuing operations of $716 million
or $0.81 per share.
* Revenues reach quarterly record of $8.1 billion.
* Cash from operations rose to a record $1.35 billion.
* Debt-to-capital ratio at 29.4 percent, lowest in this decade.
* Five of six segments increase ATOI sequentially.
* Downstream Flat-Rolled Products, Extruded and End Products, and Engineered
Solutions each deliver quarterly ATOI records.
* ROC including major growth investments of 11.8 percent; excluding growth
projects, ROC was 14.7 percent.
For the first half of 2007, income from continuing operations grew to
an all-time record of $1.39 billion, up from last year's $1.36 billion
first-half results. First half 2007 net income also reached a record $1.38
billion compared to $1.35 billion in 2006.
Revenues for the quarter reached an all-time quarterly record of $8.1
billion, up from $7.9 billion in the first quarter of 2007 and $7.8 billion
from a year ago. The increase was driven by higher volumes and improved
mix.
Second quarter 2007 after-tax operating income (ATOI) increased in five
of the Company's six operating segments over the prior quarter. The Company's
downstream Flat-Rolled Products, Extruded and End Products, and Engineered
Solutions each achieved all-time quarterly ATOI records.
Included in the quarterly results was a favourable after-tax restructuring
adjustment of $21 million, or $0.02 per share. This was generated mainly
by the completion of the soft alloy extrusion joint venture with Sapa.
The quarterly results also included $0.02 per share in after-tax transaction
costs stemming from the Company's outstanding offer for Alcan.
The strong quarterly results were achieved despite $36 million after tax,
or $0.04 per share, of curtailment costs at the Tennessee and Rockdale,
TX smelters.
We have achieved another strong quarter, with record cash generation,
record downstream performance, and our lowest debt-to-capital ratio in
nearly eight years, while continuing an ambitious investment programme,
said Alain Belda,
Alcoa Chairman and CEO. In the quarter, we also made a compelling
offer to acquire Alcan, and are proceeding well with the regulatory approvals
necessary to complete that transaction, said Belda. We remain
the natural partner for Alcan with the most substantial synergies, and
an unparalleled commitment to Canada and Quebec.
Cash from operations in the second quarter rose to a record $1.35 billion,
a more than $800 million improvement from the first quarter of 2007. The
Company's strong cash generation performance in the quarter helped to
fund its growth programmes. In the quarter, capital expenditures were
$891 million, 67 percent of which was devoted to growth projects.
The Company's debt-to-capital ratio stood at 29.4 percent at the end of
the quarter, the lowest so far this decade. The Company's 12-month trailing
return on capital (ROC) stood at 11.8 percent at the end of the second
quarter, including ongoing major investments in growth. That is higher
than the 11.2 percent trailing ROC in 2006. Excluding investments in growth,
the 12-month trailing ROC was 14.7 percent in the second quarter of 2007,
compared to 12.8 percent in 2006.
During the quarter, Alcoa also completed the formation of a joint venture
with Sapa of its soft alloy extrusion business. The Company also continued
to make progress on its strategic review of its packaging and consumer
and automotive castings and electrical systems businesses. Alcoa anticipates
that process will be completed by the end of 2007.
Segment and Other Results
Alumina
ATOI was $276 million, an increase of $16 million, or 6 percent, over
the prior quarter. Higher overall prices and shipments were partially
offset by the appreciation of the Australian dollar. Quarterly production
increased by 144 kmt or 4 percent.
Primary Metals
ATOI was $462 million, down $42 million, or eight percent, compared to
the prior quarter. The ATOI decrease resulted from lower LME prices, Rockdale
and Tennessee curtailment costs, unfavourable currency, and Iceland start-up
costs. Third-party realized metal prices decreased $23 per metric ton
to $2,879 per ton. Primary metal production for the quarter increased
2 kmt to 901 kmt due mainly to the restart of a second potline at the
Intalco smelter, net of the Rockdale and Tennessee outages. The Company
purchased approximately 46 kmt of primary metal for internal use.
Flat-Rolled Products
The segment established a quarterly ATOI record of $93 million, up $31
million or 50 percent from the prior quarter. These record results were
driven by continued strength in aerospace and higher volumes in can sheet.
Productivity gains continue to exceed cost inflation. In addition, improved
Russia performance contributed to the ATOI increase.
Extruded and End Products
The segment established a quarterly ATOI record of $46 million, up $12
million or 35 percent, from the prior quarter. The improvement was due
to strong markets, especially Europe, and improved productivity. Effective
June 1st, 2007 the soft alloy extrusion joint venture with Sapa was completed.
The associated volume and revenue will no longer be recorded in this segment;
equity income from the joint venture will be recorded here.
Engineered Solutions
Another segment quarterly ATOI record was established of $105 million,
up $12 million or 13 percent from the prior quarter. Strong markets, market
share gains and new product offerings throughout our portfolio continue
to more than offset the substantial decline in U.S. Class 8 truck market
of approximately 50% compared to year ago quarter. In addition, productivity
gains continue to outpace cost inflation.
CAB
Annual Report Shows Significant Market Growth
At
the end of June the Council for Aluminium in Building held its AGM at
Oulton Hall near Leeds, where members and guests had the opportunity to
network with a broad range of suppliers to the industry. The CAB 2007
Annual Report released at the AGM, explains the significant resurgence
in the use of aluminium in building in the UK during the last twelve months.
Justin Ratcliffe, CAB Chief Executive, explained CAB has been very
active in awards, exhibitions, regional meetings and specialist seminars
which has raised the awareness of both the use of aluminium and the benefits
of being a member of the Council. The CAB 2007 Annual Report offers a
clear review of the year for members and anyone working in this sector.
Aluminium's popularity has continued to grow for many reasons including
its 100% recycling capability and the continued increase in the use of
aluminium windows and curtain walls in dwellings. Specifiers have also
long seen the benefit of using aluminium in commercial windows. With higher
performance thermal breaks, products can easily meet the requirements
of document L for both commercial and dwellings use.
The growth in the aluminium sector will be clearly highlighted at Interbuild
in October 2007 where the 'Aluminium Zone' will be four times the size
of the area previously occupied in 2006.
CAB has seen more successful membership applications from fabricators
and installers than from any other sector of the supply chain. Membership
is seen by many installers as helping their business to be recognised
as a serious contender in the industry and often helps with tender submissions.
Copies of the CAB 2007 Annual Report are available from the CAB offices
by contacting Julie Harley on 01453 828851 or by visiting the Council's
website at http://www.c-a-b.org.uk
Shepley
has the Ans-WERs
Shepley
Windows has now launched its own range of Visage® windows under the
Window Energy Ratings (WERs) scheme with 'A', 'B', 'C', 'D' and 'E' solutions
available for the trade installer and social housing specifier.
Trade fabricator Shepley says that it has been working on this solution
for some time to ensure that the Visage® name represents the latest
in technology and performance combined with cutting edge design.

Philip
Curry (left) from the BBA presents Tim Walker, Group sales director of
Shepley Windows with the BFRC certificate.
The
windows were independently simulated and then assessed by the BBA and
are now available directly from Shepley. Tim Walker, Group sales director
comments: This is an exciting offering for our customers and is
evidence of our continual forward thinking to the needs of our customer.
WERs are a significant opportunity for the industry and we are hoping
that our customers take advantage of this with the Visage® window.
With sales figures for 2007 up on the last 2 years and with the launch
of these new WER assessed windows, Shepley is looking towards further
growth both in the trade and commercial markets. Tim concludes: Installers
looking for new ways in which to increase their business or to improve
their conversion rates should speak to us we have a fantastic branded
marketing programme and now the WERs!
Tel: 0161 339 2433
Email: tim.walker@shepley.com
LHC
Leads the 'Safety Glass Awareness' Campaign
LHC
Network is leading an intensive campaign to raise awareness of the issues
surrounding use of safety glass for windows and doors by procurement specialists
in both the public and private sectors.
LHC
Network is calling for specifiers to invoke BS EN 12600 in addition to
BS EN 12150 to be sure that safety glass they select for risk areas, such
as fully glazed doors or low level glazing, will fracture safely with
no large shards and comply with Approved Document N1 of the Building Regulations
for England and Wales.
The move is backed by the Glass and Glazing Federation, which has recently
produced a leaflet entitled 'The Right Glazing in the Right Place', together
with the British Plastics Federation, British Woodworking Federation,
Steel Window Association and the Council for Aluminium in Building.
The British Standards Institution (BSI) has also recently updated its
Kitemark scheme taking into account BS EN12600.
Dr Eli Kienwald, LHC Director, commented: From the public sector
procurement prospective, the purchase of windows and doors in particular
is a very technical issue.
By making sure that the glass they specify meets both BS EN 12150
and BS EN 12600 users of our windows and doors arrangement can have the
peace of mind that they are procuring in a compliant and effective way
and that glass installed in their properties will be safer for the occupants.'
Traditionally, the way to achieve approved Document N1 of the Building
Regulations
was to comply with BS 6206. This standard has now been replaced by a European
product standard BS EN 12150, which does not include a compulsory requirement
for an impact test, however to meet Building Regulations glass needs to
be tested against EN 12600 for vulnerable locations.
As a result, it is possible that some toughened or laminated glasses,
particularly where these are imported, may fracture unsafely with large
shards when impacted, yet still comply with the BS EN 12150 standard because
it is not classified as safety glazing having been tested against EN 12600.
Ian Chamberlain, Product Specialist, BSI Product Services commented: The
BSI Kitemark scheme, for many years based on BS 6206, has recently changed
to take into account the latest EN standards.
Classification of toughened glass to EN 12600 is a fundamental requirement
of the scheme, in addition to EN 12150. By amending the scheme, BSI is
making sure the Kitemark keeps up with the market and client's needs,
and continues to signify quality and safety.
Giles Willson, Director for Technical Affairs of GGF added: There
is a huge amount of change happening in the fenestration industry at the
moment. However, if we cannot ensure correctly marked safety glazing products
are installed in critical locations, as an industry we have failed.
GGF launched a simple guide to help everyone ensure they protect
all users of buildings and keep within the law. At the same time, LHC
Network offers an easy way for procurement professionals to source windows
and doors that are correctly specified and carefully checked for compliance.
LHC Network is free to join and open to any public sector organisation
seeking to improve the way they procure building products. Managed by
LHC, which has been a leading specialist in procuring building products
for over 40 years, it already has over 260 users including housing associations,
ALMOs and local authority housing and education services.
Members of the Network gain instant access to 13 pre-tendered framework
arrangements or negotiated agreements covering all the most frequently
required building product sectors including windows and doors; kitchens
and bathrooms; external envelope repairs; security and heating contractors.
LHC is now the UK's largest specialist public sector consortium for the
procurement of building components, services and contractors.
To apply for membership, either visit the website at http://www.lhc.gov.uk;
e-mail membership@lhc.gov.uk
or call the LHC Network on 0208 561 4700.
To download the GGF leaflet, please visit http://www.ggf.org.uk
or telephone 0870 042 4255 for more information.
The
Heat is On - Heatguard® Hits 500 Per Shift!
Over
500 HeatGuard® warm edge energy efficient products are now being produced
by Cambridgeshire-based fabricator Tradelink every 8 hour shift.
Over
the past two years Tradelink, who has capacity of making up to 10,000
HeatGuard® units every week, has seen massive customer growth in its
energy efficient range of products. In 2005 just 2% of customers were
purchasing fully glazed, HeatGuard® energy efficient products. Now
this figure has grown to well over 50%.
The reason for this, according to Tradelink's Managing Director Jim Moody,
is a combination of performance, quality and service.
HeatGuard® units offer proven performance of up to 15% improved
sound proofing, twice the life expectancy of traditional products and
dramatically reduced condensation - as well as significant energy savings.
Just by locking in thermal energy, householders can save up to 25% a year
on their domestic energy bills, commented Jim.
In addition, HeatGuard® products have quality built-in, thanks
to our in-house state of the art automated Bystronic IGU processing plant.
This incorporates patented manufacturing processes for the auto recognition
of coated glass, the robotic applied butyl sealant and the automated on-line
inert gas filled unit press.
Manufacturing units in-house also provides us with total control.
Full bar code tracking facilities ensure total traceability through every
process; progressing all items to completion and minimising interruption
in supply. An ever-expanding fleet of vehicles, including the introduction
of the HeatGuard® Express service van, means we always go the extra
mile to provide our customers with the unrivalled support and backup they
expect.
To top it all, as a major endorsement of their performance, quality
and service, warm edge insulated double glazed units allow our HeatGuard®
casement windows to boast the coveted 'Energy Saving Recommended' logo.
Instantly recognisable, it offers consumers complete confidence and reassurance.
As well as being endorsed by the Energy Saving Trust, HeatGuard® has
been certified by the British Fenestration Rating Council (BFRC), dedicated
to the operation of a UK national Energy Rating Scheme for fenestration
products.
Tradelink offers a choice of A, B and C rated HeatGuard® products,
offering C as standard specification.
Siegenia-Aubi
Helps Lancs Fabricator Achieve Folding Door First
Bolton-based
Lancashire Trade Frames is celebrating the sale of its first bi-fold door
with orders for plenty more. And, with help from SIEGENIA-AUBI, which
is providing its FS-Portal hardware for the doors, the Lancashire fabricator
is confident that this is the start of something big.
The number of enquiries we're getting suggests that there's huge
potential in bi-fold doors, and we want to make the most of it,
says production director Jason Hollins.
Since the business was established four years ago, we've always
tried to stay ahead of the game by investing in technology and products
that provide maximum scope for growth.
We wanted to create the best possible bi-fold door, and so we turned
to SIEGENIA-AUBI. I've used their products since I first started out in
the trade fifteen years ago, and John Chambers has been instrumental in
helping us get the first door exactly right. Now we're ready to start
manufacturing on a bigger scale.
The addition of SIEGENIA-AUBI hardware to the Lancashire Trade Frames
portfolio comes as the firm switches to KFV for door locks for all products.
And with KFV now under SIEGENIA-AUBI's wing, Jason knows he's getting
quality across the board:
Like the SIEGENIA-AUBI hardware, I've used KFV products for years,
he says. I wanted to switch from my existing supplier and the KFV
locks give me the innovation and product quality I'm looking for, as well
as the quality of service we pride ourselves on delivering to our own
customers.
Says SIEGENIA-AUBI area sales manager, John Chambers, Lancashire
Trade Frames has grown from a 60 frames a week fabricator to 1,000 a week
in four years by combining a focus on customer service with a nose for
strong business opportunities.
The company is operating at the cutting edge of window and door technology
and I know it will make a success of the bi-fold doors business. I wish
Lancashire Trade Frames well.
Web: http://www.lancashiretradeframes.com
Nippon
Sheet Glass Announces Revision of Operating Result Forecast
In
connection to the sale of the flat glass business in Australasia announced
on 29th June 2007, Nippon Sheet Glass Co., Ltd. announces the revisions
made to its forecast of operating results published on 31st May 2007 and
the recognition of extra-ordinary gain for the full fiscal year 2008 (
April 2007 through March 2008 ) as below.
I. Estimation of the extra-ordinary gain from the sale of business
:
JPY 25-35 Billion.
The Company has sold the business by way of selling all the issued shares
of the holding company, named Pilkington Australia Finance Pty Ltd. Since
the Company is still working on to finalise the value of the assets and
liabilities of the business and also the resulting income tax should be
calculated based upon the said value, the Company have to show the gain
from the sale in an above range at this present.
The final amount of the gain will be announced as soon as it is fixed.

II. Revised forecast for the consolidated result
The Company revises its forecast of operating results, published on 31st
May 2007, for the full fiscal year 2008 (1st April 2007 through 31st March
2008).
Three
Pence Bracket Costs Bolton Drivers Top Six Place in Tough 25-Hour Race
A
3p bracket robbed two Bolton race drivers of a top six position in the
world's longest race circuit endurance event last weekend.
Uniroyal Fun Cup Championship contenders Phil Martindale, founder and
Managing Director of Martindales and Chris Hart, Managing Director of
co-sponsor Trucks2Go in Blackrod, plus Phil's brother Andrew Martindale,
teamed-up in the Martindales lead car and were running sixth of 168 cars
with eight hours to go when a 3p bracket failed - and put them out of
the race.
The second Martindales car, co-sponsored by Blackburn-based GAP, the independent
plastic building products stockist, was driven by Charles Greensmith from
Bury, Joint Managing Director of GAP, and Sales Director Mark Simm from
Bolton. While they finished 56th overall, they were the fourth British
team to cross the finish line.
'It was absolutely gut-wrenching. We'd prepared well, we'd checked and
double- checked all the things that were likely to break or wear out,
and we were moving steadily up the field when the alternator bracket let
go - and did enough damage to put us out of the race after 17 hours,'
said Phil Martindale.
'At 4pm on Saturday we started 67th - lots are drawn for grid positions
- and by midnight we were up to 14th. By breakfast time we were sixth,
and we were catching the leaders. Those are the highs and lows of motor
racing, though.'
The famous and epic Spa circuit was the latest venue for the 2007 Uniroyal
Fun Cup endurance racing series. Phil and Chris won the previous round
in Ireland, and are amongst the favourite to win the championship this
year.
'This is the daddy of races in the Fun Cup series. It may not look like
it while you're parked on the sofa, but even a one hour stint for one
driver is absolutely exhausting, while some of the stints were three hours
in the middle of the night,' said Phil Martindale.
'It is a supreme test, not just of driving ability, but of stamina and
concentration - in between drives shared with your team-mate you're fighting
to get to sleep while the adrenaline is fighting to keep you awake.'
The cars are purpose-designed single-seaters with a strong tubular steel
chassis, mildly modified super strong Audi/VW engines and gearboxes, race
brakes and fully adjustable suspension wrapped in VW Beetle look-alike
glass fibre body.
The races are all endurance, more usually three or four hours in the UK,
complete with pit stops and all the associated drama. Teams vary from
two to six drivers in the UK and, thanks to carefully designed rules,
however many there are in a team the chance of success is exactly the
same.
Martindales Ltd was formed in 1986 by Phil Martindale. The business leads
the market in the provision of repairs and replacement windows, frames,
doors and glass involved in claims to the UK's leading insurance companies.
Web: http://www.martindales.ltd.uk
BlueScope
to Offload US Project for US$190m
BlueScope
Steel Limited (BSL) has announced the US$190 million sale of The Vistawall
Group, its North American aluminium architectural products business. The
steelmaker has sold to an affiliate of Oldcastle Glass, a US subsidiary
of CRH plc, an international building materials company. BlueScope Steel
has owned Vistawall since April 2004 when it acquired Butler Manufacturing
Company for US$206 million. The acquisition included Butler Buildings
and The Vistawall Group.
Managing Director and CEO, Mr Kirby Adams, said that the time was right
for BlueScope Steel to divest Vistawall North America in order to realise
the outstanding value created in the non-steel business.
He said, the sale price represented a strong financial return for shareholders
and reflected the excellent work done by BlueScope Steel and Vistawall's
management and employees in creating a successful and strong business.
BlueScope Steel's ability to turn the Butler Manufacturing Company from
a loss-making enterprise into an industry leader, demonstrates the company's
ongoing commitment to investing in smart, innovative downstream businesses.
BlueScope Steel would continue to own and operate the Butler Buildings
and Vistawall China businesses.
BlueScope Steel will continue to focus on the growth of our core
North American business through Butler Buildings, which has performed
strongly since its acquisition in 2004, as well as our 50:50 JV in a steel
mini-mill in Delta, Ohio, Mr Kirby conluded.
Web: http://www.bluescopesteel.com
fensterbau/frontale
2008 Already almost Booked Up
The
integration of the new halls 4A and 7A into the space concept of fensterbau/frontale,
which takes place together with HOLZ-HANDWERK in the Exhibition Centre
Nuremberg from 2-5 April 2008, is proving a big hit. The stand space available
for the leading international exhibition for windows, doors and facades
is already almost fully allocated. The Gl@zine discussed this with Willy
Viethen, Exhibition Director of fensterbau/frontale 2008 at NürnbergMesse.
Mr Viethen, some 94,000 m2 of gross display space is available in the
Exhibition Centre Nuremberg for fensterbau/frontale 2008 - this is distinctly
more than two years ago, isn't it?
Viethen: We have extended the display space for fensterbau/frontale 2008
by more than 20 per cent over 2006 because we were forced to turn down
inquiries for the previous event.
Does the current level of applications indicate that this space will actually
be occupied?
Viethen:
All the signs indicate this. The exhibitors had already booked 60 per
cent of the space at the end of last year and demand has continued practically
without interruption since then - large blocks of space are no longer
available.
This growth certainly also creates special challenges...
Viethen: Correct. We have decided to completely reallocate the hall space
for fensterbau/frontale 2008 under the motto of room for new ideas.
This means the established overall concept of the event is retained, but
all exhibition segments - and thus each individual exhibitor as well -
receive a new place in the exhibition halls. Our team is currently devoting
all its efforts to this task.
What are the advantages of this restructuring?
Viethen: It will benefit exhibitors and visitors to the same extent. It's
not just a question of more square metres: The new hall allocation creates
room for new ideas on stand design and permits a clear flow of visitors.
New main entrances lead through the exhibition as central routes and will
ensure that visitors and exhibitors find each other easily and can establish
contact in a more relaxed way.
Are any main focuses already recognisable in the expansion of the product
spectrum?
Viethen: We notice an appreciably larger demand in the segments of locking
systems, shading, doors and front door panels. I am particularly pleased
that aluminium will again be presented to a clearly increased extent at
fensterbau/frontale 2008, especially in hall 7A, which is mainly devoted
to facades and aluminium. Incidentally, the expansion of the supporting
programme for architects and building planners also follows this trend.
What plans exist for the future of fensterbau/frontale?
Viethen: In view of the fact that the exhibitors are already making full
use of the extra space offered and we are processing additional inquiries,
we have already discussed the strategy for the next but one fensterbau/frontale
in 2010 so that we can create the necessary general conditions.
Apart from the extended space, we have a clear target for improving the
depth of the product segments of fensterbau/frontale and intensifying
cooperation with national and international associations and institutions.
In general, we are devoting special attention to further internationalisation,
particularly with a view to markets for our German companies. This includes
visitor documents in more than a dozen languages or support for exhibitors'
activities at exhibitions abroad.
We are convinced that this will set the course for continuing to meet
the exhibitors' and visitors' demands on their industry's world-leading
exhibition in the future.
The main product segments at fensterbau/frontale 2008 will be located
in the following halls of the Exhibition Centre Nuremberg:
* Hardware in halls 1, 2 and 4, with mainly locking systems/doors in hall
2
* Profiles in halls 5, 6, 7, 8 and 7A, with mainly facades/aluminium in
hall 7A
* Glass in halls 7 and 7A
* Machines in halls 3 and 4A, combined with operating systems in hall
4
Tel: +49 (0) 9 11. 86 06-81 60
Fax: +49 (0) 9 11. 86 06-82 59
Email: willy.viethen@nuernbergmesse.de
Cutting
Edge Investment from John Fredericks
In
a strategic investment in excess of £500,000, Huddersfield-based
super fabricator John Fredericks has taken delivery of its fourth Schirmer
saw cutting centre.
The
new machine will significantly increase productivity and efficiency as
well as further enhance John Fredericks' high standards in product quality
and efficiency.
Thanks to its new magnetic linear gripping device, the new generation
of Schirmer saw is capable of speeds of up to 220 metres a minute. There
are no moving parts in the drive unit, which helps to minimise maintenance
on the machine. This innovation will deliver the profile to the machining
or cutting station at very high speeds and tolerances of up to 0.3mm.
Kevin Hill, John Fredericks' managing director, said: We believe
that strategic investment in new equipment is very important in order
to maintain our position as one of the leading quality trade fabricators
in the industry. We have equipped ourselves with some of the most advanced
equipment available to increase our levels of production, quality, service
and efficiency.
We are proud to continue to invest during a period of uncertainty
and instability. Our industry is operating in 'uncharted waters' where
ever-rising raw material costs and pressure to reduce end prices are placing
an added burden on many fabricators. We are confident that our wholehearted
commitment to constantly raise standards and invest for the future will
set Fredericks apart and enable the business to go from strength to strength.
The new saw cutting centre adds to John Fredericks' already impressive
portfolio of equipment, which includes reinforcing centres, auto screwing
machines, head welders, verti-quad welders and bar coding machines.
Tel: 01422 314100
Email: khill@johnfredericksplastics.com
Web: http://www.johnfredericksplastics.com
2,700
GAP Products Now Available Online
Independent
home improvements stockist GAP has increased the number of products available
to order online to 2,700 - around 85% of its total range. Since online
ordering was launched earlier this year its popularity has grown, with
560 users, and more added every week. Account holders can see a list of
the bespoke products they regularly order including individually branded
items.
GAP's online ordering service is available 24 hours a day, 365 days a
year so users can place an order at a time that suits them. GAP's Joint
Managing Director Charles Greensmith comments: Our customers want
to order all the products they need from one place. Online ordering has
been designed to help our customers run their businesses more effectively.
It saves customers even more time - and time is money - because they won't
need to make special trips to a depot for single items. We'll be adding
more products, including the Cosmopolitan door panel range, and making
online ordering even easier to use later in the year.
Tel: 01254 682888
http://www.gap.uk.com
Remember,
Remember the 25th of September!
Proskills,
the Sector Skills Council for the process and manufacturing sector including
the glass industry, has announced its First National Conference, which
will take place at the Belfry Hotel in Birmingham on 25th September 2007;
a conference which will breakthrough the sectoral and regional barriers,
bringing together employers from all of Proskills industries across the
UK to enable the sharing of best practice.
'The conference is all about giving Proskills' employers an opportunity
to learn from each other by showcasing real solutions to problems common
to all our industries; introducing them to smarter methods of working;
enabling them to unlock the full potential of their workforce; in short,
it is about driving change and improving performance.
Allow yourself to be inspired by Sir Digby Jones as he shares with
you his views and experience on business growth and sustainability...
Participate in our workshops and share best practice...
Celebrate with us the star performers of our sector at our Celebrations
Awards Dinner...
We look forward to seeing you there.
For full details or to register on line, visit our dedicated conference
website http://www.proskills.co.uk/conference07/conference07.html
or alternatively call our help line on 01235 432 032.
Plastics
Opportunities Expand in Window and Door Profiles
The
latest developments in window, door and siding profiles were discussed
at the international conference in June in Charlotte, USA, organised by
Applied Market Information LLC. Profiles 2007 attracted a wide audience
from window and door manufacturers to material suppliers and provided
a unique venue for business experts to get together. The hot topic was
decorative effects.
John Swanson described window and door markets in North America
there is an increasing shift to vinyl materials (over 40 million units
used in window profiles in 2006 compared to 25 million in 2005). There
is also growth in the use of glass fibre materials, particularly in doors
with around 4 million units in 2006 compared to 1 million in 2000. There
has also been extensive consolidation from builders to manufacturers.
Gorell Windows and Doors discussed hurricane proofing of windows. Aluminium
was tested as an alternative but the rigidity increases stresses and the
finish is not as durable. The company has developed heavy duty, fusion
welded frames that pass the missile impact testing requirements for hurricane
zones and shutters are not required.
Millennium Inorganic Chemicals described the industry certification and
standards for colour retention of siding, windows and doors, and plastic
lumber. ASTM D3679 and D6864 cover siding; D4726 covers windows and doors;
D6662 relates to plastic lumber. The American Architectural Manufacturers
Association also specifies 2-year exposure in a variety of different climates
and includes impact testing after weathering. The use of titanium dioxide
in protecting profiles was highlighted. Q-Lab described accelerated weathering
testing and carries out accelerated testing for heat, moisture, sunlight
and other factors.
Titanium dioxide has 72% market share in colouring of plastics and provides
good colour and UV resistance, as described by Tom Racal of Tronox LLC.
The undertone and tint reducing strength of the pigment vary with different
grades.
PolyOne has new dark colour PVC materials with enhanced weathering in
all climates, for capstock or solid profile applications. Dark greens,
blues and browns have all been tested for durability from Arizona to Ohio
(industrial).
The Shepherd Color Company has developed high performance inorganic pigments
in a wide spectrum of colours for the profile market. These are compatible
with all polymers, are easily dispersed, do not migrate, are heat stable
and have very low bio-availability. Shepherd has also invested in cooler
technology dark colours tend to absorb light and heat up so the
company has developed IR-reflective pigments.
Lustran has new ASA materials for siding applications in high impact,
high and low gloss grades. There are also medium and dark colour materials
for siding and profiles, all used over PVC.
Lanxess has a range of different pigments to give the kerb appeal
that gets customers to choose a product. Experiments were conducted using
a range of polymers with inorganic and organic pigments and dyes, and
looking at lightfastness and cost effectiveness.
Profile wrapping can add an infinite variety of finishes. Düspohl
Maschinenbau GmbH provides equipment for this process. Surfaces are primed
(for example using solvent free primer and vacuum coating to minimise
material use) and then flashed off with IR lamps to dry them. Generally
a slot coater and a PU based glue are then used to attach a PVC overlay
material from a roll.
American Renolit has developed a range of laminates to add value to PVC
profiles with effects from solid colour to wood grain, textures and embossed.
Durability has been tested from windows to fences and facades. There are
alternative decorative patterns for interiors. Acrylic base film is being
used in exterior films with a transparent PVDF outer layer/transparent
acrylic/pigmented acrylic make up. Patterns, such as woodgrain, are incorporated
on the surface of the pigmented layer.
Jowat supplies PUR hot melt glue for attaching overlay materials. The
high green strength helps to overcome the stresses in the coating layer.
Basell presented new TPO resins that can be formulated to be halogen-free
and flame retardant (using aluminium trihydrate, magnesium hydroxide or
ammonium polyphosphate). They are in use in window profiles, siding, reinforced
fencing and wood composites.
Dow Chemical (Texas) has worked on an alternative to PVC in profile
ethylene/alpha-olefin elastomers blended with polypropylene. These materials
have 70-90 Shore A hardness and can be processed at similar line speeds
to PVC.
Jeff Miller, President of Comfort Line, described the benefits of fibreglass
for fenestration applications: outstanding U factor (high R-values/low
U-values), can be refinished in the field, extremely hard and scratch
resistant, high condensation resistance and high performance finishes
in many colours. One case study was the St. Ursula Academy in Toledo with
1300 windows, where steel was replaced with fibreglass units.
DuPont Titanium Technologies demonstrated the benefits of adding titanium
dioxide to profiles in terms of weatherability, using chalking and non-chalking
grades.
Wood-plastic composites are also being used in profiles. Inhance/Fluoro-Seal
has a reactive gas treatment using fluorine to make composites paintable.
UV curable coatings have been tested for durability. DuPont Packaging
and Industrial Polymers have worked on compatibilisers for the mixed waste
recycled polymers that are utilised in wood composites, to improve the
interface between polar and non-polar materials. The new ethylene-maleic
anhydride improves properties such as impact strength in mixed waste streams.
American Wood Fibers has worked on the wood part of the composites to
develop improved fibre properties.
Cincinnati Extrusion has worked on coextrusion technology for profiles.
This technique was first used for incorporating 85% recyclate in the 1990s
and is now also used to add a colored top layer of PVC, ASA or PMMA. Krauss-Maffei
presented data on its latest 32D machines for profile manufacture with
reduced wear. Pallmann addressed the issue of waste profile and how to
recycle this by grinding to a powder or granulate.
Profiles 2007 gave a unique opportunity for the industry to get together
and see the latest developments with top experts to provide practical
advice and support. The decorative effects and material enhancements open
up new possibilities for manufacturers to give consumers exactly what
they want. The next event by AMI LLC is scheduled for June 3-4 2008 in
Charlotte, North Carolina at the Hilton Charlotte Centre City.
Web: http://www.amiconferences.com
Vitro
Exercises its Option to Increase Ownership Stake
Vitro,
S.A.B. de C.V. announced on July 3rd that its subsidiary Viméxico,
S.A. de C.V. (Viméxico) has notified AFG Industries, Inc. (AFG)
that it is exercising its right to purchase the 50% stake in the Mexican
joint venture.
Vitro AFG, S.A. de C.V. (Vitro AFG) currently owned by AFG. Vitro AFG
is a float glass manufacturer located in Mexicali, Baja California, México.
Vitro AFG is a 50/50 joint venture between Viméxico and AFG Industries,
a subsidiary of the Japanese company Asahi Glass Co. Limited. The joint
venture was established to supply the United States and Mexican construction
markets with a wide range of flat glass products, from the traditional
2 mm clear glass to 12 mm thick glass. The joint venture began operations
on November 18th, 2003 with a co investment of approximately US$100 million
dollars.
Within the terms of the JV agreement signed in June, 2001, AFG, recently
notified Viméxico that it wished to exercise its option to purchase
Viméxico's 50% stake in the joint venture company for US$6 million.
Viméxico, in turn, decided to exercise its right to purchase AFG's
50% stake in Vitro AFG at the price offered by AFG, according to the terms
of the joint venture agreement. The transaction is subject to government
authorisations and, if approved, would take place before the end of July
2007.
Web: http://www.vitro.com
Bespoke
Conservatory Company Decides on Duraseal
A
manufacturer of high quality timber framed conservatories and garden rooms
has taken the decision to utilise Tremco illbruck's Duraseal - a warm
edge sealant and spacer system, to help ensure its production of insulating
glass units meets the latest legislation.
Vale
Garden Houses, based in Grantham, Lincolnshire, produces three or four
of its bespoke structures each week, utilising Douglas Fir and Sapele
timber to offer the style and ambience its customers are seeking. Its
client base includes hotels, restaurants, Government buildings as well
as private homeowners.
Recognising the need to modernise its processes, particularly in respect
of thermal performance, Vale turned to Tremco illbruck to assist with
the switch to its high performance Duraseal system.
Factory Manager for Vale, David Cheney, comments: We cover not just
the UK but also Europe and we produce some 200 sealed units each week,
including a lot of complex shapes. Previously we employed an aluminium
spacer bar system together with a two part polysulphide, but we wanted
to update our approach to comply with EN 1279 and the new Part L of the
Building Regulations.
Tremco illbruck's Duraseal offered the ideal means of getting the
U-value of the units down through warm edge technology.
Duraseal is an all-in-one spacer system which provides significant improvements
in the speed and efficiency of production, whilst delivering enhanced
thermal efficiency and durability of IG units.
Due to the manner in which it is constructed, Duraseal is suited to the
production of curved and various angled corners to insulating glass units
in a variety of thicknesses. The product is quick as well as clean to
apply and reduces waste to a minimum. Its very high resistance to moisture
vapour transmission also ensures optimum service life for sealed units.
Tel: 01753 691696
Email: sealants@tremco-illbruck.co.uk
Proskills
to Establish a National Skills Academy for the Process and Manufacturing
Sector
Proskills
is celebrating the announcement that it has succeeded in its application
to establish a National Skills Academy for the glass industry and the
other sectors it represents. The establishment of the academy has been
welcomed by employers as they recognise the potential opportunities this
will create for them and their employees.
Mr Barry Chilvers, chairman of the glass industry group at Proskills,
stated: 'This decision will further strengthen employers' opportunities
to exercise direct influence over both the content and delivery of skills
training in the glass sector. This is a major achievement which will enable
Proskills to accelerate its plans to significantly enhance the quality
of training provision to the glass sector. The establishment of the National
Skills Academy will enable companies within the glass industry to ensure
that they are firmly in the driving seat when it comes to skills and training.'
Proskills success was announced to over 150 major employers by former
Education and Skills Secretary Alan Johnson at an event in London, hosted
by UK Skills Envoy Sir Digby Jones and attended by Gordon Brown.
Whilst the full benefits of being an academy will only be clarified over
the coming months, Terry Watts, CEO of Proskills, said he could see that
the following four benefits would be realised:
The Academy will support the development of 'Training Pods' which aim
to give local power to groups of employers in a region to commission and
deliver training, and where possible share training material and resources.
Economies of scale inherent in the delivery of the National Skills Academy
means that Proskills will be able to work with employers to simplify the
process for securing funding and improve the efficiency of training delivery.
Proskills will be able to develop national training strategies working
across all the regions and will be in a stronger position to negotiate
with Government and other bodies to secure funding and influence policy.
As an academy, Proskills will be able to formally acknowledge and credit
the significant training that is already being undertaken within the industry,
which is not currently recognised. This means that in-house employer-led
training could become eligible for funding and may also be recognised
as match-funding.
Stephen Falder, Chairman of Proskills, said: 'Proskills will work with
employers to address the needs identified in our recent research that
was undertaken as part of the Sector Skills Agreement. Skills can be the
big difference between success and failure. The Academy will enable Proskills
to work with the coatings industry to develop world-class training programmes.'
Bernard Rutter from Unite the Union, who is a Board member of Proskills,
has congratulated Proskills on its successful Skills Academy bid. He said:
'The Skills Academy will create opportunities for employers and employees
to increase participation in the skills development in their company.
If our sector is to compete and develop to meet the challenges we all
face, skills development must be at the top of everyone's agenda. This
is an opportunity for companies to not only upskill their workforce but
also to start to plan ahead and attract young people to join our industry
through the Skills Academy.'
The announcement was made at the formal launch of the Skills Pledge. In
addition to the employers the event was also attended by the former Secretary
of State for Work and Pensions, John Hutton; the Director General of the
CBI, Richard Lambert; TUC General Secretary, Brendan Barber, other Ministers
from across Government.
Web: http://www.proskills.co.uk
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