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Pilkington Expects to Announce 15% Increase in Pre-tax Profits

Stuart Chambers, Pilkington Group Chief Executive comments: 'Overall, trading remains in line with our expectations, with a good performance in Automotive and Building Products holding up. Together with lower interest costs and an improved profit contribution from joint ventures and associates, this should lead to an increase in pre-tax profits of around 15 per cent.

The Group continues to benefit from ongoing cost reduction and further improvements in operational efficiency, helping to mitigate the effects of variable trading conditions in our markets around the world. Energy surcharges on Building Products deliveries in Europe and North America have helped to alleviate the significant cost push from rising energy prices. Another year of focus on cash generation will again enable Pilkington to report a reduction in net debt.

Pilkington remains on track to transition into the third phase of its strategy over the course of the next financial year, when we will begin to invest surplus cash generated into profitable growth opportunities.'

Building Products
Building Products markets in Europe remain very competitive, with oversupply in float glass keeping prices at historically low levels. Building Products markets elsewhere are either holding up or improving. Sales volumes overall are similar to last year, with continuing efficiency improvements and cost savings largely offsetting rising input costs to leave operating profit for the business line broadly unchanged.

Building Products Europe, representing two thirds of total Building Products sales, has been affected by more difficult trading conditions in the UK, though demand elsewhere has begun to improve slowly, principally in Central and Eastern Europe. The Russian joint venture float plant is on schedule for commissioning in summer 2005. The new management structure introduced last year, combining the Upstream and Downstream operations into a unified European business, has led to significant improvements in operating efficiencies.

The performance of Building Products North America, which represents around 12 per cent of Building Products sales, has improved in both operational and sales terms, though revenues in the final quarter were affected by adverse winter weather. Office occupancy rates have begun to rise which we expect to feed through into rising demand from the commercial market in the coming financial year.

In South America, our Building Products businesses continue to perform well, helped by the improved economic environment in Brazil and continuing recovery in Argentina. The Pilkington-constructed joint venture float plant in Barra Velha, southern Brazil, is now fully operational, quickly attaining high capacity utilisation and good levels of operating efficiency. Although the Australian residential market is showing signs of slowdown, after three years of strong growth, the improving commercial market is providing a counterbalance.

Automotive
Original Equipment (OE) demand has held up, though the North American Automotive Glass Replacement (AGR) market is still very competitive. All areas of the business continue to reduce costs and improve efficiency so we expect operating profits to be up by around 15 per cent on last year.

More than half of Pilkington Automotive's sales are in Europe. The market for light vehicles has been flat, but with Pilkington positioned on several successful new models, sales continue to grow. The European AGR market has been relatively stable. Cost reductions continue to improve our overall results in Europe.

Over 30 per cent of our Automotive business is in North America, where light vehicle build is slightly up on last year, and aftermarket volumes have seen some growth. However, the combined impact of the weak US dollar, higher energy costs and price pressures means that North American operating profits will be down on last year.

In South America, where the Automotive business represents five per cent of the Group's Automotive operations worldwide, light vehicle production has risen by nearly 30 per cent. As a result of strong sales volumes and ongoing manufacturing efficiencies, operating profits will be up on last year.

Results in Australasia are down from last year, partly as a result of the closure of the aftermarket business in the region.

The Automotive glass joint ventures in China continue to expand as the market continues to grow. Over the course of this year we have worked to integrate the Chinese automotive operations more fully into the Pilkington global network.

Joint Ventures and Associates
Pilkington's share of the turnover of joint ventures and associates declined slightly in the current year, partly due to currency weakness, though the Group's share of profits from joint ventures and associates increased by around 10 per cent. Improved profits in Cebrace (Brazil) and Shanghai Yaohua Pilkington (China) were the main contributors, though profits reduced at Vitro Plan SA de CV and subsidiaries (in which Pilkington has a 35 per cent stake).Exceptional Items

Exceptional items in the year will include the cost of closing the Building Products decorated glass operations in Australia, the sale and closure of some Building Products processing and merchanting operations in Austria and the anticipated closure of the optical glass operations in the UK, offset by the profit on disposal of our 50 per cent share in the joint venture investment in SDC Technologies Inc in the United States. The net amount of all exceptional items will not be material and will be lower than last year.

Other
On 24th February 2005, Pilkington confirmed that, as part of an industry-wide inspection, European Commission officials visited a number of Pilkington company locations in Europe. Pilkington is co-operating with the Commission and will update the market as appropriate.

Finance
Interest costs for 2004/05 are expected to be around 15 per cent down on the previous year, due to lower borrowings.

With lower interest costs, improved profits in Automotive and in joint ventures and associates, 2004/05 profit before tax, exceptional costs and the amortisation of goodwill should be around 15 per cent higher than last year.

The Group has continued its drive to generate free cash flow and reduce borrowings through tight cost control and focused capital expenditure. As previously indicated, free cash flow generation will be below the exceptional level achieved last year, but net borrowings at 31st March 2005 should again show a good reduction.

Conzzeta Holding 2004: Revenue Growth and Marked Improvement in Earnings  

The Conzzeta Group, which includes glass machinery manufacturers Bystronic and Armatec increased its revenues by 10.6% to CHF 1013.8 million (previous year: CHF 916.6 million), topping the billion-franc mark for the first time in the Group's history. The growth was mostly self-generated. The operating result (EBIT) reached CHF 52.1 million (CHF 15.8 million), with an EBIT margin of 5.1% (1.8%).

The efforts in recent years to reduce costs and improve efficiency are reflected in this improvement. Group profit doubled to CHF 45.0 million (CHF 22.8 million). The Board of Directors is proposing an increased dividend.

The economic climate in 2004 was much friendlier than the year before. Business picked up again in the USA, and there was healthy growth in Asia. In Europe, most noticeably in Germany, the mood was still very hesitant. The situation eased most emphatically in the capital goods sector, to the particular advantage of the Sheet Metal Processing Systems business unit. The weakness of the US dollar against the euro and the Swiss franc had a negative impact on European export revenues, though it did reduce the cost of imported purchases.

Almost all the business units contributed to the revenue growth; regionally, it was most marked in the USA and Asia. We are seeing the first fruits of investments made in recent years to build up our presence in these markets. The 2004 business year was one of consolidation and organic growth. The companies acquired the year before - Büttikofer AG (foam materials processing), Armatec Vierhaus GmbH (systems for the manufacture of laminated safety glass) - and the footwear brand Raichle were successfully integrated into their respective business units. During the year, all the Group companies continued their drive to streamline business processes, reduce costs, develop innovative products and build up their market presence. While there was a clear improvement in overall performance, the rise in personnel costs was disproportionately small.

The operating result (EBIT) grew more strongly than revenues, reaching CHF 52.1 million (CHF 15.8 million). There was a marked improvement in the EBIT margin of 5.1% (1.8%), though this is still short of the target.

The proportion of shareholders' equity in the Conzzeta Group rose slightly to 73.4% (73.2%). As a result of the operational cash flow of CHF 65.2 million, the liquid assets grew by CHF 50.3 million to CHF 139.6 million after dividend payments and adjustment for exchange rate influences. This gives Conzzeta a very solid financial basis.

On the strength of the improved earnings situation, the Board of Directors is proposing a dividend of CHF 30 per bearer share, CHF 6 per registered share (CHF 20/CHF 4).

Business units

The breakdown of revenues by business unit changed slightly in the reporting year. Thanks to a very good performance in 2004, Sheet Metal Processing Systems raised its share of overall revenues to 43%. The Sporting Goods business unit also strengthened its position, achieving a 13% share of Group revenues.

Sheet Metal Processing Systems
The Sheet Metal Processing Systems business unit (Bystronic) returned to high growth in 2004, with revenues rising 19% to CHF 439.2 million. As well as a marked recovery in markets, efforts to reduce costs began to take effect.
Demand in all markets grew strongly in 2004, particularly in the NAFTA countries and Asia. The bending segment enjoyed disproportionately high growth, as the Beyeler product line benefited from greater integration into the Bystronic sales network. The same was true in the waterjet cutting segment, which benefited additionally from investments in product development in recent years. Particularly pleasing progress was made by the 5.2 kW laser source launched in 2003.

In 2004 Bystronic again presented a number of product innovations. For the first time, the less automated and therefore lower-priced models from AFM, China, were brought to the European market. To meet the expected growth in demand, the AFM plant in Tianjin doubled its capacity. Bystronic further strengthened its market presence: sales and service companies were established in Russia and Brazil, and at the beginning of 2005 two sales companies were acquired in Great Britain and Sweden.

Glass Processing Systems
Revenues in the Glass Processing Systems business unit (Bystronic glass) decreased slightly, reaching CHF 154.3 million in 2004. The market for architectural glass was subdued at the beginning of 2004 and did not recover until near the end of the year when there was a marked improvement in order books across all sales segments. The business with automotive glass performed well.

Bystronic glass launched a number of new products in 2004. To meet the US market's demand for higher productivity, Bystronic glass developed a rapid, cost-effective cutting machine and adapted the insulating glass range to suit US requirements. The presence in other markets was strengthened, for example through the establishment of a new sales and service company in Russia. In Brazil, the business unit now produces cutting machines on the spot for the local market; and in China, it signed contracts for local manufacture of cutting and insulating glass systems.

Coating materials
The Coating Materials business unit (architectural paints, print finishing and noise control) was able to improve its earning position substantially, despite rising raw material and energy prices. Revenues rose by 5% to CHF 107.1 million.
Revenues in the architectural paints division stagnated at the previous year's level. SWISS LACK therefore bucked the trend in the Swiss market, which declined by another 2%, and further strengthened its leading position. SWISS LACK is examining a strategic cooperation project with Akzo Nobel in the areas of sales, development, production and product range. The goal is the eventual sale of SWISS LACK to Akzo Nobel. According to the plan, negotiations should be concluded no later than the end of April. Schmid Rhyner AG (print finishing products) increased its sales by 18%. After two weak years, the market stabilised.

Trends and Outlook

Conzzeta aims to sustain the growth trend in 2005 and views the prospects with guarded optimism. This confidence is partly based on the healthy order books in Machinery and Systems Engineering. However, Conzzeta does not rule out the possibility that the economic climate could cool again.

The earnings position must be further improved in 2005, as it still falls short of the target. All the Group companies will continue their efforts to improve the situation through intensified marketing, increased productivity and the introduction of new products. However, the persistence of pricing pressure in many markets and the weakness of the US dollar will impose limits on revenue and margin growth.

Bradley Walsh is Celebrity Host for G 05 Awards

Well known stand-up comedian, former professional footballer and currently Coronation Street star Bradley Walsh will be the celebrity host for the G 05 Awards presentation Gala Dinner to be held at the Hilton Birmingham Metropole on June 10 2005.

Bradley will bring his anarchic brand of humour to the event which is in its second year, following a relaunch in 2004.

Many will recall seeing him recently in Ant and Dec’s Saturday Night Takeaway where he had to perform to a sales conference who were primed not to laugh throughout his performance. Obviously this will not be the case in June.

The G 05 Awards web site www.g-awards.com will be live as of today and will allow companies to enter on-line and book tables.

Cost of tables will be £1250 for a table of ten and £130 for individual places.

www.g-awards.com

Technal Doubles Capacity with Move to New Purpose-Designed Headquarters

Architectural aluminium glazing specialist, Technal, has doubled capacity of its façade systems with a move to its new headquarters near Wakefield in West Yorkshire.

The purpose-designed office and distribution centre will allow Technal to accommodate its ambitious plans for development in the UK and Ireland, and stocks of both new and existing products to meet customer demand.

Designed by Carey Jones Architects and built by York House Construction, the HBS Centre showcases a number of Technal façade products, including the new MX curtain walling system which will be launched in the UK later this year.

The MX curtain walling spans 60m along the main elevation, creating a transparent envelope and a bright internal environment for the offices. MX Trame aerofoil profiles accentuate the horizontal lines across the glazed façade and are finished in dark grey Cendré – Technal’s exclusive flecked gloss polyester powder coating. This finish provides a striking contrast to the silver cladding panels used for the production areas.

Commenting on the move and completion of the new headquarters, Bob Welsh, General Manager of Technal, said, ‘We are delighted with the new building. Our team is already benefiting from such a high quality working environment. We have bigger and better facilities for product development and for our customer training programmes. This has also been a great opportunity to showcase some of our key products, which we think have really enhanced the building.'

‘Our UK operations have more than trebled in size since the early 1990s. Demand for our systems continues to increase and we are broadening our product range in response to the changing requirements of both specifiers and fabricators. The move to the new offices and distribution centre has allowed us to more than double our stockholding capacity while maintaining the highest levels of customer service, and with space for future expansion as the business continues to develop.'

Technal’s PH doors were used for the main entrance. Engineered for use in high traffic areas, this single action pivot door has a patented high security pivot system that is fully concealed in the slim outer frame. The door stiles are shaped for an elegant finish and a specially designed hollow sill ensures superior weather performance.

Both the MX curtain wall and the PH doors were fabricated and installed by Airedale Architectural.

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

West Yorkshire Windows Chooses Synseal’s Complete Conservatory System

The Conservatory Village from West Yorkshire Windows, fabricator and installer has switched to Synseal after extensively trialling the complete Shield conservatory system last year.

‘Our conversion rates are up since we started offering Shield,’ explains Matthew Glover, Director of West Yorkshire Windows who recently won Wakefield Junior Chamber International (JCI) Business of the Year. ‘Most homeowners don’t realise that conservatories are made up from components from different companies. But with Shield you get everything – something our sales staff and homeowners seem to prefer. Sourcing all the components from one supplier is so much easier than getting the profile from one and the roofs from another. You don’t get a mismatch of different whites. All Shield components are made from the same blend of PVC-U so everything matches perfectly – windows, doors, roof and trims.

‘We put Synseal to the test last year and our sales are up 25-30%. We are converting more sales than ever and our customers are delighted. Sales this year will top £6 million. In addition to Shield we’re also taking SynerJy, the first complete fourth generation system that seamlessly integrates windows, doors, patios and conservatories to give extra choice to our customers. We are adding an extra shift in the factory and expanding into trade sales too. 2005 is going to be a very exciting year.’

Tel: 01623 443 200

Newdawn sees a Major Expansion in Central Scotland

Newdawn & Sun Ltd has appointed a new fabricator, WindowVision of Cumbernauld, to serve the central Scotland region across Strathclyde and Lanarkshire to meet the growing demand for its quality roofing system, Newera. The appointment follows an extensive search across the region for a company with the necessary premises, skills, drive and management to take advantage of the opportunity.

WindowVision Cumbernauld Limited was established by Managing Director Bert Landi in 1991 and is a long standing Duraflex trade fabricator. Pat McClusky joined the company from Corby Windows three years ago as Sales Manager and between them they have grown the company from producing just 50 frames a week in 2001 to over 200 frames a week in 2004. In September of that year the company moved to a new 12,000 square foot factory just around the corner from a 4,000 square foot factory, its home of 14 years, showing a continuing commitment to both the area and the workforce. Future expansion plans will increase the WindowVision output to up to 500 frames a week by 2006.

Bert Landi and Pat McClusky with a WindowVision Newera roof kit

The success of WindowVision is based on consistent quality and, even more important its reputation for the close personal relationships Bert and Pat build with their customers, working with them to ensure that everything possible is done to help them. Two key people in maintaining this good customer care are Lisa McKenzie, the WindowVision office manager and Debbie McKenna the office administrator who are the first points of friendly and efficient contact for the customers.

Recognising that the Newera S150 is a complete and versatile roofing system, Pat McClusky intends to concentrate on developing the conservatory business alongside the window business. Since its launch at Glassex in 2004, Newdawn says that Newera has taken the market by storm with over 90% of Newdawn`s existing customers and all newly recruited fabricators adopting the system. Three new additions have just been introduced - a full width wallbar, a universal valley and a multipurpose wallplate completing the Newera range and making it even more adaptable and able to handle complex roofs where a fully developed system is required that allows P-shapes, T-shapes and gazebos to be built from standard items. Newera is designed to meet the needs of the Scottish market with its ability to accommodate 32mm thick roof glazing material, this in addition to the increasingly popular glass roof option, Cervoglass, a double insulated sealed unit with two internal coatings that ensures heat stays inside in the winter and is kept outside in the summer. Cervoglass is virtually self cleaning and with a blue tint and gas filled will give a U-value as low as 1.2.

All of which suits WindowVision perfectly, as Bert Landi commented, ‘We were delighted to have the opportunity to join Newdawn. Apart from the excellent Newera roofing system with its faster fabrication times and simple on-site installation, we were impressed by the very high level support the company provides its fabricators from the initial training to the on-going technical and marketing support and advice and the first class service generally. Newdawn has a tremendous reputation for quality and we are looking forward to working with the company.’

Capricorn Double Glazing Chooses Newstead

There can be nothing more frustrating for the homeowner than spending hours shopping around for the best installer. Many are put off by the fact they have to sit through several presentations in their own living rooms to get the information they need to make the right decision. A year ago Leicestershire based Capricorn Double Glazing spotted a gap and established a brokerage service which finds up to six installers offering the best quality for the best price for the homeowners to choose from. Due to popular demand, Newstead Trade Frames installer, Capricorn has now added its own installation team to the existing list and significantly, 90% of homeowners choose Capricorn over the others.

Simon Hieghton-Lewin, Proprietor, Capricorn Double Glazing Co. explains why he chose Newstead Trade Frames to fabricate his windows, doors and conservatories: ‘We had to make sure we had a reliable quality fabricator to work with, to be in with a chance of being chosen by the homeowner. Newstead was enthusiastic and offered a market leaders profile. We were delighted to see Newstead treats its customers, small and big, alike. Small companies get the same efficient service and delivery as bigger installers. This can be a matter of make or break for smaller businesses.’

Tel: 01782 641 642

Fleetwood Fabricator Fired Up for Spring Open Weekend

Fleetwood, Lancashire based trade window, door and conservatory manufacturer Express Trade Frames plans to boost its already significant presence in the area with a Spring Open Weekend event. Sponsored by the company’s hardware supplier, Avocet Hardware, the event will take place on Friday 15th and Saturday 16th April and will see prizes including new conservatory frames, glass doors and other valuable items being given away to local builders and installers who attend.

Express Trade Frames has been in business for six years and has become a well-established and reliable supplier of windows, doors and conservatories to companies across Lancashire and beyond. The company employs 18 staff and produces up to 250 frames per week from its 10,000 square foot factory in Navigation Way, Fleetwood. Express Trade Frames has made some significant investments in recent months that it wants local customers to be aware of, says Sales Manager George Esler:

‘We have just committed to a new computer system that uses the state-of-the-art Evolution software by Business Micros and have also invested in new machinery including a CNC corner cleaner and bead saw. These improvements will allow us to give an even better and faster service to our customers and will take Express Trade Frames to the next level.’

The company switched to buying from Avocet 15 months ago and now buys almost all of its hardware from the company. Says George Esler:

‘Avocet has proved to be an extremely supportive supplier and we definitely made the right choice. The breadth of the company’s range means we can offer customers practically any style, finish or security specification they require. The fact that Avocet is sponsoring an event that is important to us shows how committed it is to working with us.’

In addition to a strong presence from Avocet – the company will be giving away hardware prizes to trade customers over the weekend – the open event will also feature mobile touring exhibition units from Ultraframe and PVC-u extruder Veka plc, which will bring its Big Rig mobile exhibition trailer across to Fleetwood. A number of top prizes will be offered in a special draw, including frames, glass and roof for a new conservatory, front and back doors.

Customers who attend one of the open days will be given the opportunity to tour the factory facilities and meet the Express Trade Frames team, who will be happy to answer any questions about the company.

To find out more about this event, please contact Scott Law or George Esler at Express Trade Frames on 01253 777145.

Eurocell Unveils its Ovolo Masterpiece

Eurocell unveiled its latest masterpiece in show-stopping style on 14th March, as a giant sculpture of its new Ovolo profile went on display in the reception of Birmingham's NEC Hilton Metropole hotel.

Ovolo, a fully sculptured window and door range, is part of the company's successful Eurologik family and uses a patented knock-in easy bead system to keep beading securely in place. As simple to glaze as a 'J' bead, Ovolo's 28mm bead eliminates the risk and inconvenience caused by beading becoming dislodged during transit, prior to glazing.

Ovolo's stylish lines, common throughout the range of profiles, are mirrored in the shape of the Ovolo bead giving users an attractive, aesthetic finish.

Comments Eurocell Managing Director, David Leng:
'Ovolo is a real work of art, so much so that we felt compelled to commission a super-size sculpture of it so that everyone can revel in its beauty! Joking apart though, Ovolo's development follows extensive market and field research and comes in direct response to market needs.'

He adds: 'Eurocell is fully committed to providing its customers with a range of high performance, high precision products that will allow them to maintain a competitive edge, while develop their standing in the market place.'

Continuing the 'masterpiece' theme, Eurocell is running a competition to coincide with Ovolo's launch. Entrants will be asked to identify photos of well known locations in which Ovolo has been placed and then complete a tie-breaking statement explaining why Ovolo is a work of art.

The winner's portrait will be painted by award-winning artist Lucy McKie - a prize that's almost as unique as Ovolo itself!

Contact: David Wigley
Tel: 01773 842395
Email: mailto:david.wigley@eurocell.co.uk

BBA Signs Exclusive Affiliation with Ultra Installers

After a successful first year, the Ultraframe Registered Conservatory Installer Scheme has over 100 members and has introduced a number of new initiatives along with a new name, The Guild Approved Ultra Installer Scheme.

Ultraframe has announced an affiliation with the BBA, launched an exclusive marketing toolbox, introduced an Insurance Backed Guarantee and established a comprehensive consumer marketing campaign to generate even more sale referrals and give its Ultra Installers increased competitive advantage.

To make the Guild Approved Ultra Installer scheme the most trusted in the industry and to give installers further credibility with homeowners, installation companies wishing to join the scheme will be required to meet even more stringent vetting criteria. Ultraframe has joined forces with the BBA to ensure independent inspections of installations and office processes.

Linda Doughty, Marketing Director at Ultraframe said: 'Last year The Ultra Installer Scheme achieved GGF affiliation and now we have established a relationship with the BBA. This is great news for our scheme members: not only will they continue to benefit from huge business benefits and discounts, but will have a head start to meeting the standards required by the expected changes to building regulations. Affiliation with the BBA will not only further benefit homeowners but also scheme members who can be proud to be part of a scheme which promotes the highest quality products and standards of installation.'

Installers who join the scheme also benefit from direct sales referrals. The scheme is supported by a huge consumer campaign in the mainstream home interest media, alongside a new consumer website, http://www.ultraframe-conservatories.co.uk, and the Ultraframe Ultra Guide to Conservatories, all of which recommend that conservatory buyers appoint an Ultra Installer.

Linda continued: 'All consumers who contact Ultraframe via the web or our dedicated call centre are automatically referred to three local Scheme members in their area. This year they will also be offered promotional offers which can only be used with Guild Approved Ultra Installers. All Scheme members receive monthly updates about the number of sales leads and referrals they have received, details of the numbers of visitors to their page on the Ultraframe website and updates on consumer activity. It all adds up to more business for members and peace of mind for consumers.'

Ultraframe has also launched an enhanced package of marketing support tools exclusively for Ultra Installers. The Marketing Toolbox includes a full range of template materials including door drop flyers, advertising templates, radio campaigns, public relations support, promotional gifts and stationery are just a selection of the tools available. Scheme members can create personalised marketing campaigns with minimal effort and at a fraction of the usual cost.

'Installers are able to personalise all these items with their own logos and contact details, even choosing their own imagery to suit their own part of the country. Installers benefit from negotiated preferential rates and the templates help relieve the time burden that marketing activity places on busy installers.' Further benefits made available to scheme members include the opportunity to sell an Insurance Backed Guarantee (IBG) policy, to avoid potential problems if an installer was to go out of business. Special rates have been negotiated on behalf of scheme members, who can offer the IBG as an extra value item to their customers.

Linda concluded: 'The enhancements to the Guild Approved Ultra Installers Scheme is further evidence of Ultraframe’s drive to offer a range of products and services which offer a unique value proposition to all our customer groups.'

DPR Celebrates Two Milestones

Kömmerling fabricator DPR Windows, based in the New Forest, is holding a party to mark its 20th anniversary in business, and a successful first year as a manufacturer.

Last year DPR was just embarking on trade manufacture, following an earlier successful launch into fabricating for its own installation needs.

Since then, in the last 12 months:
• Business has grown by more than 35 per cent
• The neighbouring unit has been purchased, doubling the factory size to almost 4,000 square feet
• Investment in new machinery
• Capacity increased from 200 to 250 windows a week
• On course to recruit three additional production staff
• Upsurge in replacing existing PVC-U windows.

Director Peter Richley says the company’s own domestic retail operation now regularly replaces PVC-U windows which are between 15 and 20 years old, particularly where property has just changed hands. ‘The new homeowners replace the windows almost immediately because they want something that looks good, and has more security features than the old ones.’

During DPR’s first year of fabricating, Kömmerling’s classically-curved Connoisseur has become the most popular range amongst the company’s own domestic customers, while there is an equal split with the 58mm GOLD system amongst trade customers.

DPR was founded by Peter, his brother David, and their late father, Reginald, installing windows throughout Hampshire and Dorset. Peter thinks his father would be proud of - but surprised at - the new heights the company is reaching. ‘We’d often talked about manufacturing when he was still alive, but we never did it. He’d be surprised that we finally took the plunge.’

And the plunge was taken because Peter and David wanted a greater degree of flexibility and control over their windows in order to offer a personal service, with bespoke products made for individual customers. But it’s not all been plain sailing - Peter is the first to admit that DPR is still suffering from being an unknown quantity in the eyes of some installers whom the company would like to attract.

However, there has been plenty of positive feedback from the trade customers who have overcome that prejudice and joined the DPR network. ‘Quality of product,’ ‘quality of service,’ ‘flexibility to provide a replacement door or window that very same day when we’ve measured up wrongly!’ ‘your flexibility has got us out of a sticky situation,’ are just some of the comments.

‘Installers know the value of giving good personal service to customers, meeting their own individual requirements, and they need a supplier who understands that, and treats them in the same way.’

While DPR can, and often does, turn large orders round within a few days where necessary, normal turnaround is two weeks, because quick turnaround is not something many of its customers are looking for. Says Peter: ‘The installation side of the industry is perhaps working too closely from hand to mouth, and this has a knock-on effect for fabricators who find themselves under increasing pressure to turn orders around in five days. Our thoughts are that if you need frames that quickly you’ve not got all that many jobs lined up.

‘The fact that many of our customers order windows two weeks before they need to install them – even working flat out - proves they’re busy and have healthy order-books. If they’ve got a good order-book it means they’ve got a good future. And if they’ve got a good future, we’ve got a good future, too.

‘They don’t need that hand-to-mouth turnaround. Many of them couldn’t take their windows from us any quicker than two weeks from placing the order, because they’re just too busy.’

Peter and David believe DPR has achieved a semi-automated happy medium with the Kombimatec CNC corner transom cleaner and bespoke bead saw which they’ve invested in during the last year. ‘Quality is repeated in frame after frame, and productivity has been boosted. But we’re not automated to the degree where all we are is a sausage machine churning out bog-standard windows and expecting customers to take them or leave them.’

Future investment will include a mitre saw to cut the very acute angles needed in the manufacture of triangular frames for conservatories, and a CNC saw centre to aid in profile cutting. Machinery which will help, rather than hinder, their commitment to flexibility, and their ability to produce bespoke windows to meet individual customers’ specific requirements.

Great Looks and Security Guaranteed

Installers have an added incentive to purchase windows from Walsall based Select Windows. The Status Systems fabricator is now offering aesthetically superior zendow® trade frames with an exclusive Securistyle hardware package. General Manager, Dee Benning explains, ‘At Select we recognise that the public demands a great looking window with maximum security. zendow® is undoubtedly one of the best looking window systems available, which allied to the Securistyle Vector locking system, hinges and free dogbolts, delivers an unbeatable combination for our trade customers.’

The zendow-Securistyle package from Select Windows complies fully with BS 7950 and carries a guarantee which offers consumers £500 towards replacement and uninsured losses in the event of a break-in.

Benning adds ‘We are actively promoting the Status Systems zendow® decorative range following its tremendous reception by the public and trade. We will continue to supply chamfered windows on request. Some customers require a traditional product, to match up an existing installation, for example.’ Select Windows also offers trade customers regular promotions such as free shootbolts on doors.

KEB High Security as Standard

In addition to a comprehensive list of British Standard accreditations, KEB Fabrications has now added a Secured by Design licence to its professional credentials. SBD is the police initiative intended to encourage the development of building products that assist in reducing crime and the fear of crime. Commenting on the award Managing Director, Lawrence Breakspear said, ‘We are delighted to be accepted into the Secured by Design initiative. It is a natural progression of our company philosophy of Decent Homes for all. This latest accreditation reflects the fact that for many years we have been supplying high security window and door products, creating a safer and more secure environment for householders.’

The Midlands-based Profile 22 fabricator is one of the UK’s leading social housing window and door refurbishment specialists with long term partnering agreements all over the country. In order to secure an SBD licence the company was required to demonstrate its existing accreditation as well as being subjected to and passing a rigorous evaluation acceptable to SBD.

In addition to holding a BS 7412 kitemark for PVCu windows, KEB Fabrications is certificated for production of enhanced security windows to BS 7950. Lawrence Breakspear concludes, ‘Our commitment to Secured by Design and choosing supply chain partners who are leaders in their field means our customers can be confident that KEB Fabrications offers the highest possible security and quality as standard’.

Details of KEB Fabrications accreditation and products can be found at http://www.kebfabrications.co.uk

New Stremler Glass Hardware Range is Represented in the UK by Prefit

Prefit, specialist in fittings for glass, is representing the new Stremler Glass Hardware range of fittings in the UK as a result of a merger by Assa Abloy, the world’s leading lock manufacturer, of three companies – Stremler of France, MAB of Italy and Glass Hardware Belgium.

Stremler Glass Hardware is a complete range for the architectural glass fittings market, and ensures Prefit can now supply architects, designers and end users with the widest range of products – hinges and lock sets for interior doors, patch fittings and floor springs for exterior doors, shower hinges and accessories, door closers, showcase fittings, glass walls and partitions, entry and access controls and automatic doors.

A new catalogue, headed Best of…, shows the range of quality products manufactured and marketed by a number of Assa Abloy Group Companies and is available from Prefit.

Tel: 020 8961 4777
Email: mailto:sales@prefitfittings.co.uk
Web: http://www.prefit-fittings.com

SFS intec Caps Delivery Promise with 2005 Price Freeze

SFS intec, the world's largest fastener manufacturer, has put the weight of its international capacity and expertise behind it to guarantee that its UK window fastener prices will not increase during 2005, despite a period of growing uncertainty regarding future pricing and supply of metal based window components.

The company has also promised to guarantee priority delivery to its existing customers should any shortages arise, as it moves to counter the threat of shrinking global steel supplies.

Glen Wainwright, Director of Leeds based SFS intec Industrial Fasteners says, 'We want to eliminate any supply and pricing concerns amongst windowmakers and their customers, especially those committed to long term partnering contracts who need a degree of security. With the ever increasing demand for steel from China and the Far East, we have ensured we have a policy in place that will enable our customers to successfully fulfil their 2005 contracts in even the most challenging market conditions.'

As the world's largest fastener manufacturer, with a global manufacturing operation, SFS intec is suitably placed to tackle supply issues. The company believes its straightforward pledge - to hold current prices on all austenitic fasteners until December 2005 and guarantee priority to existing customers - will be something most other fastener manufacturers and distributors find extremely difficult to match.

For further information on the SFS intec price and delivery pledge, contact Glen Wainwright on 0113 208 5500.

Sash UK Goes ‘All-Out’ for New Product Launch as Initial Response Exceeds All Expectations

Due to an overwhelming reaction to the release of details about the company’s new range of products, Sash UK has been forced to reschedule plans for an open day and will now be holding a ‘special event’ to mark the launch of Fitritedecking and Fitritefencing on Wednesday 27th April 2005.

Supplied direct from Veka in the U.S. the new range of PVCu decking and fencing is set to be a breakthrough product into what is a relatively untouched market. Sash will use its exclusive galvanised steel support system to give its customers an advantage when breaking into this new market that is set to grow rapidly.

‘The response to the product has already exceeded our expectations. Its massive market potential has been quickly identified by prospective distributors and the phones have not stopped ringing with eager people wanting to reserve places at the launch,’ said David Ruzicka, Joint Managing Director at Sash.

‘Initially the open days planned were intended to act as a hook to whet the appetite of the industry. But the uptake has been quicker than we could have hoped. Due to the enthusiasm expressed so far we felt that it called for something a little bit special, which is actually more befitting to the product anyway,’ David added.

On the day guests are invited to visit the impressive Sash headquarters, a big selling point in itself. After breakfast they will be transported to the nearby Burntwood Court Hotel where they will hear seminar presentations from various guest speakers including Kevin Seiling, President of Veka Innovations and John Ogilvy, Managing Director of Network Veka. Finally, Sash will put forward its new ‘Fitrite’ business proposition. And of course the product range and its potential applications will be unveiled along with the accompanying marketing package that has been specifically designed with independent installer in mind.

To book your place at the official launch event on Wednesday 27th April call 01226 715619 and ask for Tim Peters.

Total Glass Gets into Gear with New Vehicles

Trade fabricator Total Glass has added four new vehicles to its delivery fleet to further enhance service to its expanding customer network throughout the North West and beyond.

The award-winning company offers a five-day turnaround and daily deliveries to new customers in the Birmingham and Yorkshire areas from where it has gained new business in recent months.

With the emphasis firmly on developing its ‘Window Superstore’ concept of offering a full service to installers, Total Glass aims to ensure optimum customer satisfaction with every delivery.

This is complemented with a dedicated online ordering system so Total’s customers can be confident of a quality speedy service to fulfil all their requirements for quality windows, composite doors and conservatories.

‘This year, we are rolling out our online order processing system to all our customers and early feedback suggests this is working very well,’ says Total’s Managing Director Frank Deary. ‘All the information they need is there at a click, from instant glass sizes to supply and fit prices, and any queries can also be answered at the time of ordering.’

In recognition of its approach across all areas of its operations, the company was proud to receive the ‘Best Business of the Year Award 2004’ in the Knowsley Economic Forum Enterprise Awards scheme.

The award recognises the Total Glass approach to business excellence through diligent manufacturing principles using a skilled and highly-trained workforce to maintain its reputation for supplying a quality product within short lead times.

And throughout 2005, the company looks set to maintain these standards following its February move into purpose-built 100,000 sq ft factory and office premises where a fresh integrated ‘modular’ approach to manufacturing will take its production capabilities to new levels of growth.

Contact: Frank Deary
Tel: 0151 549 2339
Web: http://www.totalglass.com

Fastest Glazier in the West!

At a recent event in Cardiff involving Window Fitters Mate and Indigo Products, there were prizes galore on offer for the fastest glazier in town.

The idea of a customer open day surfaced just a few short weeks ago as a result of the increased demand by Window Fitters Mate for the new Elite 70 window and door suite recently introduced by Indigo Products. Since the introduction of Elite 70 to WFM Group, sales of the product have begun accelerating. As part of HW Plastics and Indigo Products support to WFM, an initiative involving all three parties gave the builders in the Cardiff area a chance to show what they were made of. Every visitor to the event was invited to become the fastest glazier in the west!

The competition was very fiercely contested, but the clear winner was David Lewis from Wright Glass (pictured). ‘I was quite surprised how quickly and easily the window glazed’, said David. ‘It’s certainly going to be a consideration for us going forward’.

John Averill, Window Fitters Mate Branch Manager in Cardiff, together with his colleague Dexter Roberts and Dave Stearman, National Sales Manager with Indigo Products, summed up the event: ‘The weather was on the chilly side, which did affect the turnout a little. However, all those customers who did make the effort to come along were pleasantly surprised to see how easy the new Elite 70 window was to glaze. We plan to roll out more of these events across the UK later this year’.

Tel: 01625 666119

Conzzeta Holding 2004: Revenue Growth and Marked Improvement in Earnings  

The Conzzeta Group, which includes glass machinery manufacturers Bystronic and Armatec increased its revenues by 10.6% to CHF 1013.8 million (previous year: CHF 916.6 million), topping the billion-franc mark for the first time in the Group's history. The growth was mostly self-generated. The operating result (EBIT) reached CHF 52.1 million (CHF 15.8 million), with an EBIT margin of 5.1% (1.8%).

The efforts in recent years to reduce costs and improve efficiency are reflected in this improvement. Group profit doubled to CHF 45.0 million (CHF 22.8 million). The Board of Directors is proposing an increased dividend.

The economic climate in 2004 was much friendlier than the year before. Business picked up again in the USA, and there was healthy growth in Asia. In Europe, most noticeably in Germany, the mood was still very hesitant. The situation eased most emphatically in the capital goods sector, to the particular advantage of the Sheet Metal Processing Systems business unit. The weakness of the US dollar against the euro and the Swiss franc had a negative impact on European export revenues, though it did reduce the cost of imported purchases.

Almost all the business units contributed to the revenue growth; regionally, it was most marked in the USA and Asia. We are seeing the first fruits of investments made in recent years to build up our presence in these markets. The 2004 business year was one of consolidation and organic growth. The companies acquired the year before - Büttikofer AG (foam materials processing), Armatec Vierhaus GmbH (systems for the manufacture of laminated safety glass) - and the footwear brand Raichle were successfully integrated into their respective business units. During the year, all the Group companies continued their drive to streamline business processes, reduce costs, develop innovative products and build up their market presence. While there was a clear improvement in overall performance, the rise in personnel costs was disproportionately small.

The operating result (EBIT) grew more strongly than revenues, reaching CHF 52.1 million (CHF 15.8 million). There was a marked improvement in the EBIT margin of 5.1% (1.8%), though this is still short of the target.

The proportion of shareholders' equity in the Conzzeta Group rose slightly to 73.4% (73.2%). As a result of the operational cash flow of CHF 65.2 million, the liquid assets grew by CHF 50.3 million to CHF 139.6 million after dividend payments and adjustment for exchange rate influences. This gives Conzzeta a very solid financial basis.

On the strength of the improved earnings situation, the Board of Directors is proposing a dividend of CHF 30 per bearer share, CHF 6 per registered share (CHF 20/CHF 4).

Business units

The breakdown of revenues by business unit changed slightly in the reporting year. Thanks to a very good performance in 2004, Sheet Metal Processing Systems raised its share of overall revenues to 43%. The Sporting Goods business unit also strengthened its position, achieving a 13% share of Group revenues.

Sheet Metal Processing Systems
The Sheet Metal Processing Systems business unit (Bystronic) returned to high growth in 2004, with revenues rising 19% to CHF 439.2 million. As well as a marked recovery in markets, efforts to reduce costs began to take effect.
Demand in all markets grew strongly in 2004, particularly in the NAFTA countries and Asia. The bending segment enjoyed disproportionately high growth, as the Beyeler product line benefited from greater integration into the Bystronic sales network. The same was true in the waterjet cutting segment, which benefited additionally from investments in product development in recent years. Particularly pleasing progress was made by the 5.2 kW laser source launched in 2003.

In 2004 Bystronic again presented a number of product innovations. For the first time, the less automated and therefore lower-priced models from AFM, China, were brought to the European market. To meet the expected growth in demand, the AFM plant in Tianjin doubled its capacity. Bystronic further strengthened its market presence: sales and service companies were established in Russia and Brazil, and at the beginning of 2005 two sales companies were acquired in Great Britain and Sweden.

Glass Processing Systems
Revenues in the Glass Processing Systems business unit (Bystronic glass) decreased slightly, reaching CHF 154.3 million in 2004. The market for architectural glass was subdued at the beginning of 2004 and did not recover until near the end of the year when there was a marked improvement in order books across all sales segments. The business with automotive glass performed well.

Bystronic glass launched a number of new products in 2004. To meet the US market's demand for higher productivity, Bystronic glass developed a rapid, cost-effective cutting machine and adapted the insulating glass range to suit US requirements. The presence in other markets was strengthened, for example through the establishment of a new sales and service company in Russia. In Brazil, the business unit now produces cutting machines on the spot for the local market; and in China, it signed contracts for local manufacture of cutting and insulating glass systems.

Coating materials
The Coating Materials business unit (architectural paints, print finishing and noise control) was able to improve its earning position substantially, despite rising raw material and energy prices. Revenues rose by 5% to CHF 107.1 million.
Revenues in the architectural paints division stagnated at the previous year's level. SWISS LACK therefore bucked the trend in the Swiss market, which declined by another 2%, and further strengthened its leading position. SWISS LACK is examining a strategic cooperation project with Akzo Nobel in the areas of sales, development, production and product range. The goal is the eventual sale of SWISS LACK to Akzo Nobel. According to the plan, negotiations should be concluded no later than the end of April. Schmid Rhyner AG (print finishing products) increased its sales by 18%. After two weak years, the market stabilised.

Trends and Outlook

Conzzeta aims to sustain the growth trend in 2005 and views the prospects with guarded optimism. This confidence is partly based on the healthy order books in Machinery and Systems Engineering. However, Conzzeta does not rule out the possibility that the economic climate could cool again.

The earnings position must be further improved in 2005, as it still falls short of the target. All the Group companies will continue their efforts to improve the situation through intensified marketing, increased productivity and the introduction of new products. However, the persistence of pricing pressure in many markets and the weakness of the US dollar will impose limits on revenue and margin growth.

ABLOY® has a Million Reasons to Celebrate  

ABLOY® has recently manufactured its one-millionth electric lock at its production facility in Joensuu, Finland, representing a milestone in the history of the organisation.  

This announcement comes as Abloy Security, distributor of ABLOY® products in the UK and Ireland, adds to its range with the introduction of a series of new multi-function electric locks.
 
In recent years electric locks have become a vital part of modern locking systems. The latest range is easy to specify and install, and has been developed to offer high levels of security and safety while being able to conform to EN standards for emergency exits and resistance to fire and burglary. 
 
As well as electric locks, the ABLOY product range consists of door cylinders, padlocks, cam and furniture locks, rim and mortice locks; plus a range of door closers and automatic door operators.

In addition to these, other products offered by Abloy Security include JPM exit hardware, electric strikes from effeff, standalone access products and Unican/Simplex mechanical digital locks.
 
Robin Rice, Managing Director at Abloy Security said:

'The performance, functionality and reliability of ABLOY products, means that our we have become renowned within the industry and specified for use by government, public and end user organisations within the UK for over 30 years.'

Robin continues, 'We are absolutely delighted with this achievement and the continuing success of ABLOY.' 

The Fascia Company Converts 1 in 2.5 Sales with Everwhite

Leicester based roofline installation company, The Fascia Company, has recently installed over £13,000 of fascias and soffits on a £1 million house for a local business man. In the twelve years it has been installing fascias, the company has used most of the main brands of roofline. Priding itself on quality it now chooses Everwhite Plastics Ltd for all its products.

The company was so impressed it recently wrote to Everwhite to say thank you. Daniel Manion, Partner of The Fascia Company, explains: 'We changed to Everwhite products last year. Its materials are better than any other on the market – the boards aren’t brittle like a lot of others so we are not getting any problems with wastage. And, because of the careful packaging we don’t have any problems with damaged boards. The range of products Everwhite can supply is also important to us. We use the pre-ventilated soffits so we always comply with government legislation. Changing over to Everwhite and becoming a Registered Installer has given our sales a real boost – we used to win 1 in 5 sales, now it’s halved our conversion rate. My partner in the business Karl Bell puts this down to the fact that the public are now more aware about what quality products are available. They want the best for their money and that’s what we give them.’

Tel: 01685 882 447

Hunter Douglas Acquires Paris Texas, Dallas, U.S.A.

Hunter Douglas has acquired Paris Texas Hardware, a designer and marketer of branded decorative drapery hardware products.

Paris Texas Hardware will continue to operate independently and maintain its focus on supplying products of superior design and quality to the retail home market. The company had sales in 2004 of USD 10 mln. and has 70 employees.

This acquisition will enable Hunter Douglas to benefit from the expected continuing growth in the North American decorative drapery hardware market.

Hunter Douglas has its Head Office in Rotterdam, the Netherlands and a management office in Lucerne, Switzerland. The Hunter Douglas group is comprised of 161 companies with 64 factories, 97 assembly operations and marketing organisations in more than 100 countries. Hunter Douglas has approximately 16,000 employees and had sales in 2004 of EUR 1,720 million.

The shares of Hunter Douglas N.V. are traded on the Dutch and German Stock Exchanges.

New Kanthal Heating Element System used in Forehearth Redesign

Heating specialists Kanthal, a product area within Sandvik Materials Technology, has supplied Superthal heating modules, fitted with Kanthal Super CS elements, as part of a forehearth redesign project in a major glass plant.

Part of a two year project to improve production efficiency, increase capacity, reduce energy consumption and maintain or improve glass quality by building and installing a larger furnace, Kanthal has been responsible for the design and production of special forehearth heating elements.

UK engineering consultants Industrial Analysis and in-house engineers were responsible for the overall project management which involved both the melter and forehearth.

The furnaces are electrically heated via immersed tin oxide electrodes and historically the main heat source for the forehearth also came from tin oxide electrodes. These electrodes are water cooled and fitted through holes in the refractory sub structure. The top heating in the forehearth was provided by silicon carbide elements operating at around 1250°C.

Redesigning the forehearth top heating system to accommodate the specially designed Kanthal Super multi-shank elements has yielded several advantages, including uniform forehearth heating which optimises glass quality.

The new muffle elements and improved muffle design have enabled the removal of some of the immersed water cooled electrodes and the result has been a reduction in forehearth energy consumption of 48%.

The forehearth has 11 outlets and each has Kanthal's specially developed Superthal heating elements in the gob-feeder and orifice heaters to maintain and control glass temperatures.

The improved forehearth design has seen the percentage of forehearth power supplied by muffle increase by 20% to around 60%. Also contributing to energy and operating efficiency is the reduction in forehearth cross sectional area, which was undertaken having been identified from glass flow modelling.

The Kanthal heating system and superstructure are supplied in preformed shapes, enabling much shorter construction time. The design of the muffle provides for quick replacement of an element without the need to adjust the muffle construction.

Each Superthal panel assembly contains one Kanthal Super CS multi-shank element comprising 20 shanks at a distance of 50mm, located on a ceramic fibre panel hot face measuring 650mm x 460mm. Total power is 20.5 kW, 40 volts per element delivered from a step down transformer. A total of 51 panels have been supplied. The element shape has been critical to the installation to make sure that power is concentrated where it is needed and that a large element surface is contained in a small space. The multi-shank design also means that the element can be cooled down and reheated. This enables reuse after furnace rebuilds and results in longer life.

Email: mailto:info.ukstoke@sandvik.com
Web: http://www.smt.sandvik.com

DuPont and City of Dongying, China, Open Negotiations Concerning New Titanium Dioxide Plant

DuPont and the city of Dongying, Shandong province, the People's Republic of China (PRC), have begun talks that could lead to construction of a world-class titanium dioxide (TiO2) plant in the city's Economic Development Zone. TiO2 is a white pigment widely used in the coatings, plastics and paper industries.

'Current and forecast demand for titanium dioxide in Asian markets, especially China, is growing faster than any other region of the world,' said Sam Severance, vice president and general manager of DuPont Titanium Technologies. 'Our goal is to be strategically positioned as the leading TiO2 supplier in that expansion. We believe that location of a new plant at Dongying would significantly improve our ability to serve our customers in these fast-growing markets while contributing to the continued development of the local economy.'

DuPont teams have visited China and other Asian nations to identify sites suitable for TiO2 manufacturing. Dongying, located in Shandong Province, emerged as the leading candidate site. Any commitment to a specific site is contingent on the success of negotiations with local entities, meeting a variety of regulatory requirements and obtaining internal DuPont approvals. A Dongying delegation recently returned from a visit to DuPont manufacturing facilities in the United States and the company's corporate headquarters in Wilmington, Del.

'DuPont has an excellent reputation for the quality and innovation of its products, the safety of its manufacturing sites and its environmental stewardship,' said Dongying Mayor Liu Guoxin. 'Together with DuPont, we will examine the short- and long-term implications of this potential project for our community and region. Our plan is to intensify discussions beginning now and jointly announce our decision in two or three months.'

'As we look at the future for DuPont and China, we're excited about the prospects for mutual growth and benefit,' said DuPont Greater China President Thomas G. Powell. 'An agreement to build this plant will bring to Dongying an advanced, environmentally sound manufacturing process and a substantial number of attractive job opportunities. Both elements are important to the city's sustainability and to DuPont's expansion in China.'

DuPont is the world's largest manufacturer of titanium dioxide. The company operates three TiO2 plants in the United States, one in Mexico and one in Taiwan. In addition, finishing and slurry plants are located in Brazil, South Korea and The People's Republic of China. The new plant in China would serve the plastics, coatings and paper industries in that nation and the region.

DuPont is a science company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.

OFT Fines Scottish and North East Roofing Contractors for Price-fixing

Ten roofing contractors have been found by the OFT to have agreed to fix the prices of, and in some cases to share markets for, flat roofing services in the north east of England and in Scotland through collusive tendering. They have been fined nearly £830,000 in total (reduced to nearly £560,000 by leniency).

The parties (see note 1) were found to have been involved in a series of individual agreements and concerted practices in tendering for flat roofing contracts in the period 2000-2002 in breach of the Chapter I prohibition of the Competition Act 1998.

In the north east, the contracts affected were for felt and single ply flat roofing services, and related to a number of schools, a college, a number of telephone exchanges and a business park unit.

In Scotland, the contracts affected were for mastic asphalt flat roofing services, and related to diverse contracts including a school, television studios, a town hall, a supermarket and a lighthouse.

The OFT concluded that the parties' collusion in setting tender prices and market sharing by allocating contracts between themselves was intended to restrict or distort competition and meant that buyers were unable to obtain competitive prices when buying flat roofing services.

Sir John Vickers, OFT Chairman, said:
'Collusive tendering deprives customers of the benefits of competition. Schools, local authorities and ultimately council tax payers were among the victims in these cases.'

The OFT began formally investigating the arrangements between the flat roofing contractors in 2002 after deciding that information which it had received gave reasonable grounds to suspect that certain roofing contractors had been engaged in collusive tendering. 

The OFT's overall investigation of various flat roofing contractors has covered different geographic regions and product lines, resulting in a number of separate decisions, including the two announced on 18th March. An earlier decision issued in March 2004 by the OFT relating to flat roofing contractors in the West Midlands was recently upheld by the Competition Appeal Tribunal. The OFT is continuing to investigate other allegations of collusive tendering in relation to construction in relation to other regions and products. 

Agreements or concerted practices between businesses that fix prices and share markets by way of collusive tendering are among the most serious infringements of the Competition Act. Financial penalties are being imposed on parties, subject to the operation of the policy to give lenient treatment for undertakings coming forward with information.

In line with the OFT's leniency policy Briggs Cladding and Roofing Limited has been granted 100 per cent leniency in both decisions issued today. In addition, in the north east, Mitrepoint Limited (trading as Roofclad) has been granted 50 per cent leniency and Hylton Roofing Limited 35 per cent.

In Scotland, WG Walker and Company (Ayr) Limited has been granted 45 per cent leniency, Lenaghen Roofing Services 35 per cent; and Pirie Limited 55 per cent, which includes a 'leniency plus' uplift in recognition of the fact that Pirie was the first party to apply for leniency and voluntarily to provide information in relation to a separate product market. The financial penalties on those parties are being reduced accordingly.

The full text of the decisions will be available soon under the CA98 Public Register decisions section.

NOTES
1.  The businesses involved in the OFT investigations (with regions and fines in brackets) were:

* Briggs Cladding and Roofing Limited (north east £88,956 and Scotland £57,120, both reduced to £ nil by leniency)
* Dufell Roofing Company Limited (North East, £74,624)
* Hodgson and Allon Limited (North East, £74,151)
* Hylton Roofing Limited (North East, £73,385 reduced to £47,700 by leniency)
* Kelsey Roofing Industries Limited (in administration) (North East, £262,000)
* Mitrepoint Limited trading as Roofclad Systems (North East, £25,107 reduced to £12,554)
* Single Ply Roofing Systems Limited (in administration) (North East, £ nil – a fine would have been imposed had the company generated turnover in the last business year preceding this decision)
* Lenaghen Roofing Services Limited (Scotland, £29,607 reduced to £19,245 by leniency)
* Pirie (including Pirie Limited, Pirie Group Ltd and Pirie & Co (Paisley) Ltd) (Scotland, £114,873 reduced to £51,693 by leniency) and
* W G Walker and Company (Ayr) Limited (Scotland, £29,845 reduced to £16,415 by leniency).

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