Pilkington
plc Trading Statement
In
accordance with its established policy, on 25th September Pilkington issued
the following trading up-date ahead of its interim results announcement
for the period to 30th September 2003, which will be made on Wednesday,
5th November 2003.
Summary
Stuart Chambers, Group Chief Executive commented:
'As we indicated at the time of the Annual General Meeting, conditions
in most of our major markets remain tough. Despite this, Pilkington continues
to make good progress with cost reduction and further improvement in our
manufacturing performance. Overall, trading is in line with our expectations
and in the first half year pre tax profits will be ahead by approximately
10 per cent, partly because results in the first half of last year were
adversely affected by extended cold repairs in our float operations. Continued
emphasis on free cash flow generation will enable us to report another
strong cash performance, in line with our overall objectives.'
Building Products
Building Products markets have continued to be weak, with the exceptions
of the UK and Australia. Efficiency improvements and cost savings have
continued and the operating profit for Building Products in total is running
at approximately the same level as last year's first half.
In Europe, our Building Products business, representing two thirds of
total Building Products sales, continues to be adversely affected by the
economic situation on the continent, particularly in Germany. By contrast,
trading performance in the UK has held up well, supported by good sales
of Pilkington 'K glass'. Float prices across Europe are now slightly down
on average since the beginning of the financial year.
Building Products North America, representing 15 per cent of Building
Products sales, has been adversely affected by the weakness in commercial
construction, where Pilkington is the leading North American glass supplier.
Office vacancy rates are still high, making near-term market improvement
unlikely. However operational improvements continue to come through from
the North American 'Step Change' programme, lifting operating profits.
Sales of our 35 per cent associate, Vitro Plan SA de CV (VVP), declined
by approximately 10 per cent due to competitive pressure in the domestic
market. Export sales, on the other hand, benefited from the weaker peso.
Operating profits were impacted by the one off closure costs of a patterned
glass line, and in total are down by around one third on last year.
In South America our Building Products businesses continue to perform
well. Market conditions in Brazil are difficult, but we are benefiting
from the improved economic environment in Argentina. Overall operating
profits from South America are ahead of the first half of last year.
The Australian business continues to perform well and profits will be
at a similar level to this time last year.
In China, the Group's main investment, SYP, has seen both sales and profit
increase over the comparable period, growth coming from improved sales
of processed architectural glass products, as China experiences increased
demand for more high performance glass products in construction projects.
Earlier this month we announced the formation, with Emerging Markets Partnership
(EMP), of a 50:50 joint venture to construct and operate a float glass
plant in the Moscow region of Russia. The investment will be financed
by £21 million of equity each from Pilkington and EMP, and from
project loans.
Pilkington's equity investment will be made over the next two years. The
plant, to be built and operated by Pilkington, will have a sales capacity
of approximately 240,000 tonnes per annum and is planned to come on stream
in 2005. The plant represents a first step in establishing a growth opportunity
for Pilkington in Russia, an important expanding market for glass.
Automotive
Despite sluggish automotive markets, a combination of good progress on
new models featuring Pilkington glass and continued success in cost reduction
and manufacturing improvement has improved operating profits by around
20 per cent at the half year stage.
Just over half of our Automotive sales take place in Europe. Light vehicle
production in the western European market has slowed, though demand for
Pilkington OE products has increased, with good gains on new model introductions
and higher shipments of specialised OE applications (bus, coach and truck).
The European Automotive Glass Replacement (AGR) business has held up well.
In total for Europe profits have improved, due to sustained improvement
in manufacturing efficiencies and a relentless focus on cost reduction.
Just under 40 per cent of our Automotive business is in North America,
where overall light vehicle build is running around 5 per cent lower than
last year. However our OE business continues to benefit from operational
improvements. Sales from our North American AGR business have reduced,
due to a 5 per cent fall in the overall market and to competitive pressures.
Overall profits in North America are at similar levels to last year.
In South America, representing approximately 6 per cent of total Automotive
sales, vehicle production was slightly ahead of last year, as were Pilkington
sales. The combination of higher sales, increased productivity and improved
plant efficiencies have resulted in an increase in our operating profits
in the region.
Results in Australia show improvement over last year, reflecting efficiency
improvements and a more favourable trading environment.
The automotive glass joint ventures in China all continued to experience
strong sales and profit growth. The Chinese vehicle market is growing
rapidly, and it is expected that two million passenger cars will be built
in China in 2003, double the level of 2002.
Exceptional items
Exceptional items in the period will consist of the cost of exiting the
Automotive Glass Replacement business in New Zealand, which is anticipated
to be in the region of £7 million.
In July we announced that we had entered into an agreement to sell our
Aerospace business to GKN for £42 million, payable in cash, contingent
upon obtaining the necessary regulatory approvals. It is anticipated that
final approval will be obtained in the next few weeks. After accounting
for purchased goodwill the transaction is expected to generate neither
significant profit nor loss.
All
Time Production Record at Planet
June
2003 was a landmark month for frame production at Planet Manufacturing.
From the twin sites at Walton Summit, Preston and Moss Side, Leyland,
output for the four weeks of June combined was 4,541 frames - the best
ever. Another record, for weekly production, was hit in the last week
of June, when 1173 frames were completed. Stuart Prescott, Manufacturing
Director is delighted with the progress being made across all departments
in production.
'The recent relocation to Walton Summit went smoothly, but like all moves,
there is a settling in period. We are now successfully through this with
the equipment and new people - five extra operatives started recently
- all bedded in. Add in staff moves to balance out shop floor skills,
plus a big uplift in morale as people see the positive growth taking place
and the result is a definite improvement in efficiency all round. For
example, the team redeployed from Bamber Bridge to Walton Summit have
increased productivity by a staggering 100%!' says Stuart.
Paul Sweeney is now heading up Order Inputting and Quality Control, while
Nilesh Chudasama is working alongside Stuart Prescott in the ongoing project
to steer manufacturing towards achieving 'World Class' status for its
operations.
Barry Cornwell is also back in full swing in the warehouse, and on the
golf course, after his recent illness and George Babb maintains his great
performance supplying on a just-in-time basis the daily profile needs
of the Moss Side plant.
Two new fork lift trucks have already been ordered in anticipation of
the arrival of yet more state of the art manufacturing equipment which
is scheduled for delivery to Walton Summit in September and October of
this year.
Rotherham
Metropolitan Borough Council, in conjunction with hardware and profile
partners, Wagner (GB) Ltd and Rehau, will be hosting a morning of presentations
on 23rd October under the banner ‘The Total Solution’.
The topics covered by speakers from KFV and Strand Hardware, as well as
Wagner, Rehau and Rotherham MBC themselves, will include issues such as
school curtain walling and all social housing frames.
As the key supplier of hardware to Rotherham MBC’s own successful
window factory, Wagner has arranged for representatives from a number
of hardware manufacturers to be on-hand to discuss various aspects of
hardware specification.
Anyone with an interest in PVCu window and door specification is welcome,
and details of the venue and times can be obtained from the council on
01709 820036 or mailto:barbot.hall@rotherham.gov.uk
The
Bombay Sapphire Blue Room at the Geffrye Museum
The
short-listed and winning entries for The Bombay Sapphire Prize 2003 –
the biggest annual international glass design award with a £20,000
prize fund – will be exhibited in The Bombay Sapphire Blue Room exhibition
- Glass in Contemporary Life, from Tuesday 23rd September to 11th January
2004.
The
exhibition, an official 100% Guaranteed event at 100% Design, brings together
outstanding projects by international artists, architects and designers
who have chosen glass as the primary material for their designs. It demonstrates
the incredible versatility of glass as a design medium and its importance
in our daily lives.
Artists such as Americans, Danny Lane and Ray King and architects like
Nick Coombe and Jim Eyre who walk the boundary between architecture and
sculpture, are represented with their latest innovative projects.
Inspirational young designer Paul Cocksedge combines glass and gasses
to make an entrancing installation. Artists such as Jochen Holz, Charlotte
Hughes and Anne Brodie challenge our traditional view of 'the decorative
object' and offer us work that is full of irony and wit. The work of the
hot Czech design studio Olgoj Chorchoj is featured large as are designers
Ingegerd Raman and Per B Sundberg of the Swedish company, Orrefors.
The selection panel for The Bombay Sapphire Prize includes international
designers and glass experts from The Bombay Sapphire Foundation established
last year to support and reward contemporary glass design. The judges
include Ron Arad, Tom Dixon, Thomas Heatherwick (last year’s Bombay
Sapphire Prize winner), Nicole Farhi, Lesley Jackson and Dan Klein.
Twenty-three architects, designers and artists have been short-listed
from an original submission of over 500 entries from all over the world.
The judges were looking for innovation and excellence in the use of glass.
All
entries had to use glass as an integral part of their design - whether
architectural, design or art - and have been created within the last two
years.
The overall winner of The Bombay Sapphire Prize will be awarded £15,000
and two runners-up £2,500. The winners will be announced at an awards
ceremony at the Geffrye Museum in London on 23rd October.
The exhibits are as follows:
The Bombay Sapphire Prize 2003 - Finalists:
Rodney Bender - Kilo LUX Glass Blocks
Mark Bickers - Cut/Re-Heat/Twist Bowls
Anne Brodie - Pouring Spoons, Expectant Spoons and Silver Spoons
Olgoj Chorchoj – Inside Out Vases, Tube Light and Tube Candleholder
Paul Cocksedge - NeON
Nick Coombe and Shona Kitchen - Minotaur
Jim Eyre, Wilkinson Eyre Architects - Bridge of Aspiration
Ferdi Giardini - Nerolia
Jochen Holz - Who Sat on My Chair
Charlotte Hughes - Silent Reproach and Waking up to Us
Eva Jiricna Architects - Hotel Josef
Ray King - Luma Cloud
Radek Kredl - Glass Plates
Danny Lane - Parting of the Waves
Mårten Medbo - Spinal Vase and Double Vase
Ingegerd Råman - I Ching and Snowlight Vases
Auli Rautiainen - Botanic
Colin Reid and Rob Godman - Ephemeral Cube/Solid
Elaine Sheldon - Unsettled and Bulldog Light
Per B Sundberg - Stardust
Brian Usher - Inevitability of Agnus
Carl Van Hees - Inizio Collection
Beate Wöhrle – Wired Collection
Also on Display in the Blue Room:
- Martini glasses designed by Frances Rideout, Edinburgh College of Art
and
Marko Plevnik, RCA
- Aquarius and U.F.O. designed by Miho Higashide, New Designers/Bombay
Sapphire Future of Design Award winner for excellence in contemporary
glass
design
The Bombay Sapphire Blue Room
The Geffrye Museum, 136 Kingsland Road, Shoreditch, London E2 8EA
Recorded information: 020 7739 8543
Web: http://www.geffrye-museum.org.uk
Nearest tube: Liverpool Street, then bus 149 or 242
Opening times: Tue-Sat, 10am-5pm; Sun and Bank Holidays 12-5pm
Free entry
Securistyle
Announces Record Sales Figures
Securistyle,
the UK manufacturer of window hardware, has announced record sales figures.
The Cheltenham-based company, which employs 350 people, has experienced
an average growth rate in sales of 10% for the past three years.
Securistyle managing director Paul Cook says: 'The success of the company
is due to the strength of the brand and the quality of the design, manufacturing
and marketing teams behind it.'
Sales are not only soaring in the UK but the firm is also making major
inroads into European and worldwide markets with new contracts in the
USA, China and South America.
Paul adds: 'lnvestment in research and development are key to staying
ahead of the competition, as sales of our new Vector Excluder locking
mechanism show. This innovative product is being specified throughout
the public sector by housing associations and local authorities alike
due to its maximum resistance to forced intrusion and improved corrosion
resistance.
'We intend to continue to develop new and innovative products, manufacture
them efficiently and maintain our high standards of service and delivery.'
Fastener
Quality Put to the Test at KEB
KEB
is a customer that is pleased UK Fasteners
takes quality issues seriously enough to do its own in-house testing.
UK Fasteners ensures its suppliers test the fasteners, but also does all
its own testing as well. The in-house tests carried out check screw dimensions,
axial torque and hydrogen embrittlement.
‘We recognise the importance of buying from quality suppliers, no
matter how small the product,’ comments Manher Patel, Quality Manager
of KEB. ‘We take great care in choosing our suppliers, right down
to the last screw. That’s why we use UK Fasteners. UK Fasteners conforms
to the correct standards and beyond and carries out it’s own testing
procedures which offer peace of mind. This is particularly important to
us because our main business is contract work, which means we must meet
certain standards. UK Fasteners offers such a wide range of products they
can meet all our requirements.’
Synseal
Tops the Ratings in 2003 Independent Windows Benchmarks Survey
Synseal’s
customer ratings put it top of all 20 systems companies’ customer
ratings in the independent 2003 Benchmarks report. The chart illustrates
that with a mean rating of 102%, Synseal customers are more satisfied
overall than any other suppliers’ customers.
These latest results come from the annual Window Systems Benchmarks 2003
survey, from Reputations Plus Ltd, which compares window systems companies’
performance in the eyes of their customers. Benchmarks is a wide-ranging,
comprehensive study of over 400 fabricators, who are asked their views
of 40 plus systems companies on 23 key criteria. The 23 attributes include
obvious criteria such as product quality, range, appearance, innovation,
delivery frequency, complete deliveries, technical back up and price as
well as other important areas such as knowledgeable sales representatives,
approachable management, and dealing with complaints.
One of the key measures in the report is the ‘Opportunity Gap’
- the difference between importance ratings (what customers want) and
performance ratings (what customers get). The chart shows the mean i.e.
the average opportunity gap for all 23 attributes rated by customers for
Synseal and competing window system companies.
• Over 100% indicates system companies are exceeding customer expectations.
• 90-100% shows system companies meeting customer expectations.
• 80-89% shows areas where customers are dissatisfied.
• 80% indicates extreme dissatisfaction among customers.
Nick Dutton, Sales and Marketing Director of Synseal comments: ‘We’ve
been gaining ground on our competitors at a rate of knots over the last
few years through our focus on quality, innovation and customer satisfaction.
We are delighted with these latest results which will help underpin our
continuing drive to exceed customer expectation in all areas’.
Tel: 01623 443 200
Web: http://www.synseal.com
Growth
& Expansion at Millenco
About
6500 square feet of warehousing and manufacturing space has been completed
at Millenco Hardware's Wolverhampton site. The new facilities will be
fundamental to supporting Millenco's forthcoming product strategy, as
well as providing a central focus for the company's new Kanban supply
chain solution.
Millenco has been undergoing significant infrastructure upheavals in preparation
for two forthcoming initiatives - the recently announced Kanban supply
chain solution and the forthcoming launch of a complete new range of products
that the company believes will have significant impact on the UK hardware
industry.
Millenco's supply chain solution is based on need rather than assumption.
Developed around the Kanban concept, the system operates on a three bin
format - one in use, one in stock at the customer site, and a third kept
at Millenco's Wolverhampton warehouse. This third bin is delivered and
invoiced when the 'in use' bin becomes empty. The number of deliveries
depends entirely on how quickly stock is used.
Web: http://www.millenco.net
A
prestigious Redrow site at Walmer Bridge near Preston is benefiting from
Duraflex Diamond Suite PVCu windows and doors which, specified by New
View Window Systems, comply with the award-winning housebuilder’s
exacting performance criteria. Comprising a mix of flats and family homes,
the contract involves over 1000 windows and 80 door sets and is due for
completion in November 2005.
Norvik, New View’s exclusive supply partner and long-standing Duraflex
fabricator, is undertaking the manufacture of all windows, French doors
and patio doors for the project for installation by New View.
New
View chose the various window styles and design options from Duraflex’s
65mm Featured range of profiles to complement the different property types
at Walmer Bridge. In addition to standard opening casements in brilliant
white, selected houses have been designed with windows in Duraflex’s
Light Oak finish.
Other distinctive features incorporated into some property styles include
bow windows fitted with the assistance of steel structural templates,
together with fixed light arches. Regency lead is also being applied to
a number of front elevations to create a traditional glazing effect.
The Duraflex Diamond Suite is available in a choice of 65mm and 70mm Bevelled
and fully Featured systems that comply with the latest building regulations.
Independent testing approved by the BBA show that both 65mm and 70mm Duraflex
profiles achieve U-values lower than the proposed standard under Document
L of 1.8 W/m2K. Duraflex also offers a variety of styling options, such
as Georgian Bars and Mock Horn, and a choice of finishes. The new woodgrain
effects, such as light oak and the recently introduced rosewood, provide
housebuilders with the opportunity to add differentiation in their developments
and complement particular house styles. In fact Redrow was an early leader
in specifying woodgrain and more recently light oak effect foils.
Established less than two years ago Wigan-based New Windows Systems has
already built mutually beneficial working partnerships with many of the
UK’s leading national and regional housebuilders. Proprietor, Kevin
Seddon, believes the ability to deliver a reliable and competitively priced
service is critical to success in this demanding market. ‘Delays
on site due to delivery problems or quality issues cost money and so a
dependable supply chain is vital. Duraflex and Norvik deliver the support
we need on time, every time.’
Tel: 08705 351351
CGI
International Continues to grow Presence in the USA
UK
based Fire- Glass manufacturer CGI International Ltd was in evidence at
the 28th Door & Hardware Conference and Exposition held in Tampa Bay
Florida in September.
The conference is the annual showcase for manufacturers and suppliers
to the hollow metal and wood door industry in North America and gave CGII
the opportunity of meeting many end users of its fully approved Pyroguard
range of 20 minute fire-glasses.
The DHI show was also the first opportunity for CGII to show-case the
recent National Distribution agreement set up with Oldcastle Glass whose
sales team were present in support of this.
Sales Director Steve Ridgway said 'Working along side such a respected
glass supplier as Oldcastle Glass offers door manufacturers, distributors
and glaziers a unique opportunity in the market to one-stop shop for their
glass needs, which now include specialised fire-glasses previously only
available by special order, in over 40 stocking locations'.
Tel: +44 (0) 20 7960 6060
Email: mailto:info@cgii.co.uk
Web: http://www.cgii.co.uk
Web: http://www.oldcastleglass.com
Beazer
Homes and Masco Corporation Sign National Supplier Agreement
Beazer
Homes USA, Inc., and Masco Corporation announced on Friday 26th September
that they have signed an agreement in which Masco will become Beazer Homes'
largest supplier and installer of insulation. Under the terms of the agreement,
Masco Contractor Services, a wholly owned subsidiary of Masco Corporation,
will install insulation in the majority of homes constructed by Beazer.
In addition to insulation, Masco supplies a wide variety of its home improvement
and building products to Beazer Homes.
Ian J. McCarthy, President and Chief Executive Officer of Beazer Homes,
said, 'We are pleased that we have strengthened our partnership with Masco,
a company with a reputation for excellence in quality and customer service.
This partnership reflects Beazer Homes' commitment and efforts to strategically
reduce costs in order to deliver maximum value to both our customers and
shareholders.'
'Masco has always had an excellent relationship with Beazer Homes and
we look forward to a long and mutually beneficial partnership,' said Alan
Barry, Masco President and Chief Operating Officer. 'We believe this new
partnership will be advantageous to both companies and presents an opportunity
for Masco to expand its business with Beazer through providing a wide
range of diversified products such as cabinets, windows, mirrors and shower
doors.'
This agreement with Masco is part of Beazer Homes' ongoing initiative
to realise increased benefits for its clients and shareholders by focusing
on national account initiatives and opportunities to optimise its supply
chain initiatives in order to achieve lower overall production costs.
Beazer Homes USA, Inc., based in Atlanta, Georgia, is one of the country's
ten largest single-family homebuilders with operations in Arizona, California,
Colorado, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi,
Nevada, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina,
Tennessee, Texas and Virginia. Beazer Homes also provides mortgage origination
and title services to its homebuyers.
Headquartered in Taylor, Mich., Masco Corporation is a leading provider
of services that include the installation of insulation and other building
products. In addition, Masco is one of the world's leading manufacturers
of faucets, cabinets, architectural coatings and other brand-name home
improvement and building products.
Web: http://www.masco.com
The
Swish Building Products Approved Installers scheme is designed to give
consumers confidence in the workmen they employ and the quality of the
products used. By joining the scheme, roofline installation companies
can show that they have taken part in product training and have maintained
high standards of workmanship, and that they have met Swish’s criteria
for the administration of day-to-day contact with customers. All members
of the scheme carry certificates of registration.
The Swish brand is a recognised roofline and cladding brand in Britain,
and represents value and quality. The company therefore takes any misuse
of its brand extremely seriously, as can be seen in a recent case at Birmingham
Magistrates’ Court.
Two builders were prosecuted by local Trading Standards officers following
complaints of shoddy workmanship, substandard materials and misleading
claims involving the Swish brand, among other offences. As a result, one
builder was jailed for 15 months and the other was fined over £6,000.
The ‘cowboy’ builders had told homeowners that they were members
of the Swish Approved Installers scheme, although they had never been
registered, and also claimed to install Swish brand products, when in
fact they fitted an alternative material.
Dave Osborne, Technical Services Manager for Swish Building Products,
says, ‘This was a clear cut case of our name being misused to gain
sales under false pretences. In such cases we are able to back up Trading
Standards officers by providing the evidence they need to secure convictions.
‘We want to issue a clear message that this sort of practice will
not be tolerated. By pursuing the abuse of our brand we are protecting
our reputable customers who benefit daily from the Swish brand,’
concludes Dave.
Swish Building Products manufactures and supplies cellular PVCu roofline
and cladding profiles, which are available through a national network
of plastic building materials stockists. White profiles carry a unique
15-year guarantee for appearance and performance.
Tel: 01827 317200
Quality
Mark in North West Venues Showcase
Some
of the most prestigious venues in the North West of England have now been
booked to stage launch events for the Government's Quality Mark Scheme.
They will be the focus for an autumn recruitment drive encouraging thousands
of firms to join the only Government-backed national register of approved
builders working in the home improvement market.
Former Manchester City Architect Bob King, who recently joined the QM
team consisting of DTI and Rethinking Construction officials, is spearheading
the eight enlistment events being held over three weeks.
Mr King said: ‘These events are very important for the thousands
of building firms in that part of the country keen to know about Quality
Mark and whose businesses have an awful lot to gain by becoming Scheme
members.
‘The venues, including Manchester City's new home ground, Aintree
and Carlisle Racecourses, and the Reebok and JJB stadiums in Bolton and
Wigan respectively, are landmark attractions in their own right and an
added incentive for firms to attend.
‘That is one of the reasons they have been picked, along with their
geographical convenience for the people we are inviting and their ability
to comfortably handle the large numbers we anticipate attending.’
Representatives of 200 - 300 firms at each event will get details of how
Quality Mark works, why it is good for their business and industry, plus
information on what is included in the simple but thorough accreditation
process for Scheme membership.
A range of live presentation, video footage and other display materials
will be used, followed by the guests visiting any of 10 ‘breakout’
areas where industry experts and scheme officials will be on hand to answer
questions over food and refreshments, taking the audience through the
accreditation process in more detail.
Invitation letters are being sent out to thousands of firms in the North
West in the coming weeks, supported by a PR and marketing awareness raising
campaign, and a special registration hotline will be opening on Monday
22nd September for firms wanting to attend. Local authority partners (including
building control and Trading Standards) are helping in the enrolment drive.
The North West launches are:
Monday 27th October - Reebok Stadium, Bolton
Tuesday 28th October - Carlisle Racecourse
Wednesday 29th October - The Moat House Hotel, Chester
Thursday 30th October - The City of Manchester Stadium
Monday 3rd November - The JJB Stadium, Wigan
Tuesday 4th November - Aintree Racecourse, Liverpool
Monday 10th November - De Vere Hotel, Blackpool
Tuesday 11th November - Park Hall Hotel, near Preston
Designed with the home improvement market in mind, Quality Mark works
by placing contact details of independently assessed and accredited firms,
which reach the required standard, on a single national register. This
is accessed free-of-charge by phoning low cost call centre number 0845
300 80 40 or via the internet at http://www.qualitymark.org.uk
GQA
Chairman's Statement 1st AGM
The
first financial year (all 15 months of it) commencing 1st lanuary 2002
was a period of change and progress for Glass Qualifications Authority
Ltd.
GQA has made significant progress in developing its distinctive individual
identity.
GQA continues to make progress in its vision to 'achieve a world class
qualified workforce in glass and glass related occupations'. We have done
this by concentrating on the priority issues that our customers want.
This linked to the 2002 Building Regulations and the continued interest
in the construction sector of achieving an all Construction Skills Certification
Scheme (CSCS) card holder workforce on major construction sites has helped
generate interest in selected GQA Qualifications.
All sectors have made a vital contribution to the success of GQA - in
Automotive Glazing, Glass Processing, Glazing, Production Of Glass Supporting
Fabrications, Installation and Surveying and Glass Manufacturing.
More companies than ever are using GQA qualifications and both registrations
,and achievements rocketed in 2002. It remains important that GQA qualifications
continue to add benefit to a business.
Many SME's are able to implement GQA qualifications through partnership
arrangements with independent training providers or colleges. The provider/college
manages the qualification implementation process on behalf of numerous
SME's and can if necessary provide assessors and internal verifiers. Often
the GQA centre, accesses funding support to enable the SME to implement
the qualifications at minimal cost.
GQA worked closely with the standards setting bodies, the Construction
Industry Training Board (CITB) and Glass Training Ltd (GTL). It has also
made contact with another thirty strategic organisations to keep them
abreast of developments and to seek their support.
GQA encouraged its approved centres to contribute to the current standards
reformation process being undertaken by GTL as it is the new standards
that will provide the basis of GQA glass related qualifications over the
next five years.
The success of the first trading period has been underpinned by the strengthening
of relationships with existing key partners and the forging of new strategic
contacts.
GQA welcomed to the Board Peter Fanning of RAC Auto Windscreens, in September
2002, bringing with him valuable experience in a sector that is very important
to GQA Ltd.
The future will bring about greater changes than ever before for GQA.
We recognise the need for change and will continue to drive forward the
strategic UK wide agenda taking account of the needs of England, Northern
Ireland, Scotland and Wales. However the real success of GQA will lie
in the services it must provide for the ever-growing number of customers.
The coming year will bring about new changes and the need to work with
sector skills councils whose remit will be much wider than those of the
existing standards setting bodies.
As chairman I am delighted with the success of our first trading period.
My congratulations and thanks go to the GQA Board members, the regulatory
bodies, organisations that have remained or become approved centres, strategic
supporters and the staff at GQA for assisting in our achievements.
Mike Morris
Chairman
Glass Qualifications Authority Ltd
The
Greek window market is at the moment enjoying good growth rates, the market
reached a level of 1,946 million units in 2002, representing a growth
in terms of quantity of +9.3% compared to the year before, when the market
also enjoyed a growth of +12.1%, according to the latest market study
by the consultants of InterConnection.
The whole Greek construction industry is seeing a boom at the moment.
According to the IOK (Greek Institute of the Construction Industry), the
share of construction works of the total GDP is estimated to reach 20.2%
in 2003 and 20.7% in 2004, the industry employed 249,000 people in 1997,
296,000 in 2002 and forecasts see 352,000 people working in the construction
industry in 2004.
The majority of all windows are used for residential purposes. In 2002,
80.2% of all windows were used for residential construction and 19.8%
for non-residential construction. The majority of producers expects further
growth in the market of multi-level housing. Concerning the distribution,
major differences between urban and rural areas are observed: In urban
areas, windows are bought at dealers, in the rural areas directly from
the – mostly small – producers.
Since the introduction of PVC windows in Greece in 1994, mainly driven
by German profile producers, PVC windows could enjoy a good growth in
the market.
Nevertheless, there are strong differences in the market concerning the
regions of Greece: PVC windows are very strong in the Northern Part of
the country, whereas in Central Greece (Athens, Peloponnissos) traditional
aluminium windows are still dominating the market to a large extent. On
the Aegean Islands and Crete, representing around 10% of the Greek population,
wood windows are dominating due to cultural reasons.
The IC-MARKET MONITOR Spot® WINDOWS IN GREECE is a detailed market
and industry analysis of the Greek window market and contains market figures
in value and quantity for the years 1997-2002 and forecasts up to 2005.
The report is now available from the InterConnection Consulting Group.
IC-MARKET MONITOR Spot® WINDOWS IN GREECE
ISSUE: AUGUST 2003
SIZE: 70 PAGES
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Alcoa
Presents Update on China Operations to Investors
On
September 14th, in Shanghai, Alcoa China President Galdino Claro met with
investors outlining Alcoa's operations, with particular emphasis on the
Shanghai rolling mill.
A copy of the presentation is available at http://www.alcoa.com/global/en/investment/analysis.asp
Alcoa has nine facilities in China, serving customers in numerous markets.
Alcoa is a producer of primary aluminium, fabricated aluminium and alumina,
and is active in all major aspects of the industry. Alcoa serves the aerospace,
automotive, packaging, building and construction, commercial transportation
and industrial markets, bringing design, engineering, production and other
capabilities of Alcoa's businesses as a single solution to customers.
In addition to aluminium products and components, Alcoa also markets consumer
brands including Reynolds Wrap® aluminium foil, Alcoa® wheels,
and Baco® household wraps. Among its other businesses are vinyl siding,
closures, precision castings, and electrical distribution systems for
cars and trucks. The company has 127,000 employees in 40 countries.
Anticipated Acquisition by Assa Abloy of the European Security Hardware Business of Black and Decker
The
OFT's decision on reference under section 33 of the Enterprise Act 2002
given on 2nd September 2003 concluded that the merger does not appear
to result in a substantial lessening of competition within a market or
markets in the United Kingdom for goods or services.
Affected Market: Security locks
Parties
Assa Abloy AB (AA) is a Swedish company, formed in 1994 following a merger
between Assa AB of Sweden and Abloy of Finland. AA is one of the
world's leading manufacturers and suppliers of locks and associated products. In
2002 it had worldwide sales of approximately 2,779 million euro. Black
& Decker Corporation (B&D) of the US, is the parent company of
the European Security Hardware Group, comprised of three businesses DOM
Sicherheits-technik GmbH & Co KG (DOM KG), Nemef B.V. and Corbin SRL.
These companies have manufacturing interests in Germany, the Netherlands
and Italy respectively. All three companies are active in the European
locks market and sell their products into the UK through DOM UK, a branch
of DOM KG. DOM UK acts only in a sales capacity.
Transaction
On 18th March 2003, AA entered into a conditional agreement with B&D
to acquire the European Security Hardware Group (ESHG). The transaction
is conditional on merger clearance in the Netherlands and Germany. At
the date of this advice, decisions in each authority are still outstanding.
Details of the transaction were notified on 16th July 2003. The OFT's
40 day administrative target expired on 11th September 2003.
Jurisdiction
As a result of this transaction AA and the ESHG of B&D will cease
to be distinct. The parties overlap in the supply of door locks and
padlocks and the share of supply test in section 23 of the Enterprise
Act 2002 (the Act) is met in respect of each of these products. A relevant
merger situation has therefore been created.
Relevant Market
Product market
The parties overlap in the supply of door locks and padlocks.
Door locks are fitted to doors to provide security.Door locks all serve
the same basic function but differ in terms of the security they offer. Three
types of door lock are available: cylinder rim locks, mortice locks, and
multipoint locks. Historically the most popular locks in the UK have been
cylinder rim and lever mortice locks, although the increasing preference
for PVCu and aluminium doors has seen an increase in sales of multipoint
locks. In the commercial sector, cylinder locks are the most popular
type of lock, which at the high security end are master-keyable. The
major lock manufacturers all supply a range of products, and modest retooling
is required to change the manufacturing process.
Padlocks are available in a range of security levels, from simple deterrent
padlocks ('domestic') to products for very high security applications
('commercial'). Commercial locks have special features and customers
may need specialist advice. While there may be demand side differences,
on the supply side, most manufacturers make a range of padlocks.
There appears to be some supply side substitutability between locks and
padlocks as lock manufacturers generally make padlocks (and vice versa). Some
companies have established brands in different sectors of the market;
for example, AA owns the Yale, Chubb and Union brands of locks and padlocks. Chubb
and Union are well established in the lever mortice lock sector, while
Yale is strong in cylinder rim locks and in padlocks, but the brands cover
several other products. However Europe-wide CEN standards, covering
six grades of resistance to attack, were adopted for locks and padlocks
in 2001 which suggests that brand name is no longer the only indicator
of quality. In addition locks and padlocks are frequently re-branded by
wholesalers and retailers.
Geographic market
The merger only impacts on the supply and distribution of locks and padlocks
into the UK since ESHG does not manufacture in the UK. A distribution
presence is required in the UK. There is a significant degree of
imports of locks and padlocks into the UK – cheaper manufacturing
and labour costs overseas have resulted in locks and padlocks being manufactured
throughout the world. In view of this, it is likely that the scope
of the geographic market is at least UK wide but it is not necessary to
reach a conclusion since competition concerns do not arise from the merger.
Horizontal Issues
Market shares
AA considers itself to be the global market leader, with annual sales
approaching Euro three billion and a share of supply globally of 10-12
per cent. It considers the second biggest player globally is Ingersoll
Rand, followed by Kaba, Black & Decker, Stanley and Dorma. The
security product industry is growing steadily at two-three per cent in
real terms because of increasing wealth in the developing world and an
increasing sense of vulnerability.
Taking a narrow geographic frame of reference, AA has been the market
leader in the UK for some time in both door locks and padlocks. The parties
estimate that AA accounts for 25-35 per cent and ESHG less than five per
cent of locks supplied in the UK. The main competitors are Ingersoll
Rand, ERA, Guardian and Kaba Grundman. In the supply of padlocks,
AA estimates its share of supply in the UK as 40-50 per cent and ESHG's
as less than five per cent. The main competitors are Squire, Abus and
Master. Information available to the OFT suggests that the shares of suppliers
have fluctuated over the last five years or so, suggesting competition
is present, with imports taking an increasing share. Imports of door
locks were estimated at 31 per cent in 2002 and have increased from 48
per cent in 1995 to 73 per cent in 2002 in the padlocks sector.
Barriers to entry and expansion
The parties consider that barriers to entry are low because the technology
is mature, the products are commodity products and easy to copy, and manufacture
can be sub-contracted.
Buyer power
Trade customers, wholesalers, distributors and DIY multiples, are likely
to have, and exercise, buyer power. This is because they source imports
directly, with many selling own brand products, and can seek to influence
terms to their suppliers. Domestic customers are not likely to have
or exercise any buyer power.
Vertical Issues
No vertical issues are raised by this transaction.
Third Party Views
A number of third parties were contacted by OFT in the usual way. Only
a small number responded but no competition concerns were raised. One
third party was concerned that the merger might have an adverse effect
on employment in the UK locks industry.
Assessment
Door locks and padlocks are manufactured in Europe and the Far East and
a significant proportion of UK sales of door locks and padlocks are sourced
from these regions. While the merger allows AA to increase its share
of supply to the UK market, the increment is extremely small at less than
five per cent in each product sector. Barriers to entry are low and
buyer power from trade customers appears to be present which should act
as a constraint on the merged business. It is therefore unlikely
that this merger will create a substantial lessening of competition. While
AA is the clear market leader in the UK, shares over recent years exhibit
some volatility which is evidence of competition between players in the
market.
The merger does not appear to result in a substantial lessening of competition
within a market or markets in the United Kingdom for goods or services.