Pilkington
Warns of 10% Profits Drop in Building Products Worldwide, but Good Performances
from UK and Automotive Maintain Expectations Overall
In a Trading Statement issued yesterday, Pilkington Glass Group Chief
Exec Stuart Chambers reported that Building Products (BP) markets remain
generally weak, with the exception of the UK and Australia. 'Efficiency
improvements and cost savings continue to mitigate the impact of weak
markets, though price pressures will result in operating profit for the
business line being approximately 10% down on last year.
In Europe, our BP business, representing two thirds of total BP sales,
continues to be adversely affected by depressed economic conditions on
the continent, particularly in Germany. Trading performance in the UK
has held up well, supported by strong sales of energy efficient Pilkington
‘K-Glass’. Management of the primary and processed operations
was combined during the year to improve operating effectiveness and over
the next two years we will take out more costs from this business.
Mr Chambers continued:
'As we have indicated for some time now, trading conditions remain challenging
in most of our major markets. In spite of this, the transformation in
manufacturing and operational efficiency accomplished over recent years
means that results for the current year are in line with our expectations.
Like for like sales have remained steady and operating profit from Group
businesses will be maintained at last year’s levels with a strong
profit performance in Automotive offsetting the decline in profits within
Building Products. The robustness of our business will again enable us
to report good progress against our prime objective of generating free
cash flow, leading to another substantial reduction in Group borrowings.'
BP North America, which represents 15 per cent of BP sales, continues
to be 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 efficiency
improvements continue to flow from the 'Step Change' programme, resulting
in a return to operating profit in the North American BP business during
the year.
In South America our BP businesses continue to perform well, helped by
the improved economic environment in Argentina. Our Australasian business
also did well. As a result, Building Products profits outside Europe and
North America will be up on last year.
Automotive
Despite flat automotive markets this year, continued good progress on
cost reduction and manufacturing efficiency led to operating profits for
the Automotive business line increasing by almost 30 per cent.
Just over half of our Automotive sales take place in Europe, where Original
Equipment light vehicle production has slowed. Pilkington’s sales,
however, have increased through good gains on new model introductions
and higher shipments of specialised OE applications (bus, coach and truck).
The European Automotive Glass Replacement (AGR) business also increased
sales compared to last year. Automotive profits rose in Europe overall,
due to sustained improvement in manufacturing efficiencies and continued
focus on cost reduction throughout the supply chain.
Around 40 per cent of our Automotive business is in North America. While
overall light vehicle build was around 5 per cent lower than last year,
which impacted sales, margins in our OE business continued to benefit
from operational improvements. Sales from our North American AGR business
reduced due to a fall in the overall market and to competitive pressures
on pricing. The effect on our AGR NA business led to a reduction in overall
profits for our North American Automotive business of around 25 per cent.
In South America, vehicle production is ahead of last year, as are Pilkington
sales. Higher sales, increased productivity and improved plant efficiencies
will deliver an increase in our operating profits in the region. Results
in Australia will also show an improvement over last year, reflecting
efficiency improvements and strong domestic demand.
Associates and Joint Ventures
On flat sales, operating profits of our 35 per cent owned Mexican associate,
Vitro Plan SA de CV (VVP), for the year ended 31 December 2003 declined
by approximately 10 per cent in US dollars, due to competitive pressures
in North American construction and in the Automotive OE markets and the
impact of the closure costs of a patterned glass line.
The results of Cebrace, our joint venture in Brazil, were affected by
the difficult economic environment.
In China, sales and profits at Shanghai Yaohua Pilkington (SYP) increased
over the comparable period, due to increased demand in high performance
glass for China’s construction projects driving higher sales of Pilkington’s
processed architectural glass products. Pilkington’s automotive glass
joint ventures in China continue to experience strong sales and profit
growth. The Chinese vehicle market is growing rapidly, with two million
passenger cars built in China in 2003, double the level of 2002.
Our 50:50 joint venture with Emerging Markets Partnership, announced last
November, to construct and operate a float glass plant in the Moscow region
of Russia is progressing well. We plan to have the plant operational by
Summer 2005.
The impact of the slowdown in Brazil and Mexico will be to reduce our
share of associates and joint ventures profits by around 25 per cent this
year.
Exceptional items
As reported at the interim results, we closed the Automotive Glass Replacement
business in New Zealand, at a cost of £7 million.
In September we completed the sale of our Aerospace business to GKN for
£42 million. After accounting for purchased goodwill the transaction
had no significant impact on profits.
Finance
Free cash flow for the year will be higher than 2002/03, and together
with the proceeds of the disposal of our Aerospace business will lead
to a further significant reduction in Group borrowings.
Due to our strong cash flow and to lower interest rates, interest costs
in total will be around £5 million lower than last year, even after
refinancing £216 million equivalent of preference shares last March
with fresh bank borrowings.
Reported operating profits in 2003/04 were largely unaffected by foreign
exchange movements, as until the turn of the calendar year the impact
of the weak US Dollar had been offset by the stronger Euro and South American
currencies.
You
Don't Have to be Mad to Work at Winlock - but it Helps!
For
most of us there is a certain level of predictability about our working
day. Arrive at office, check my appointments, prepare Board Report, check
sales figures, send emails, wrap a huge boa constrictor snake around my
neck….. Wait a minute!
This unusual business task awaited Winlock’s sales and marketing
director Philip Swann recently when his agency was looking to brand the
new window opening restrictor being launched through an advertising and
marketing programme.
The product has been named BoaRestrictor and the nine feet long snake
was employed at Dudley Zoo in the West Midlands, to take one of the star
parts in a promotional photoshoot.
Who says the window market is a slippery business??
Contact: Philip Swann
Tel: 01952 680178
Email: mailto:sales@winlock.uk.com
K2
Targets Interbuild Trade Summit
Conservatory
manufacturer K2 will be providing expert advice to visitors at THE BIZ,
a new area created by the Federation of Master Builders in partnership
with Interbuild.
The doors on this one-stop-shop offering help, advice and guidance on
the latest services and products for small and medium sized builders will
be open throughout the exhibition at Birmingham's NEC from April 25th
to 29th.
And as well as being one of the experts enlisted, K2 Conservatory Roof
Systems will also ensure THE BIZ has a unique look through the imaginative
use of architectural glazing.
Said FMB director general Ian Davis: 'It's often difficult to get sensible,
straightforward, quality advice on products and services which directly
affect a builder's business.
'We have therefore created THE BIZ which gathers together a range of important
products and services to ease the process.'
The FMB will be offering substantial discounts to builders who apply for
membership at THE BIZ and there will be plenty of offers and giveaways
for existing FMB members.
Thanks to the alliance with K2, supplier of almost a fifth of the 300,000
conservatories installed in the UK last year, THE BIZ will also be able
to offer an Approved Conservatory Installer Scheme using the FMB's vetting
criteria and on-site assessment.
'Our glazed roof for THE BIZ reflects the increased use of glass in conservatory
roofs, and the demand for ever-more innovative designs,' said Iain McInnes,
Marketing Director of K2 Conservatory Roof Systems Ltd.
'Not only will FMB members be able to benefit with discounted products
from K2 but they will also be able to join the Approved Conservatory Installer
Scheme completely free of charge.
'All installations will be covered by FMB's MasterBond insurance-backed
warranty and members will also benefit from joint promotions and marketing
activities that will be undertaken by the FMB and K2.'
THE BIZ is now confirmed as being full to capacity. Other services on
offer include insurance advice from FMB insurance services, specialist
building advice from BRE Bookshop, financial help and guidance from TradePro
with information about its new trade card, estimating software demonstrations
by Acisoft, plus the latest publication and computer software products
for Small Business Management and Risk Assessment from CITB-ConstructionSkills.
Nissan will also be promoting their extensive Light Commercial Vehicle
range.
Said Interbuild Event Director Steve Webb: 'We are very pleased to be
working with the FMB to offer this exciting new area and we have been
very impressed at the calibre of the partners it has attracted.
'It is the first time the needs of the small business have been specifically
addressed at Interbuild and THE BIZ will offer a unique forum for advice,
information, services and know-how in a dedicated area.'
Entry to the 50th Interbuild is £20 per person but FREE for anyone
who pre-registers either at http://www.interbuild.com
or by calling 0870 429 4558 or by texting 'IB <your full name>.<company
name>' to 88600.
To find out more about THE BIZ and Interbuild, log on to FMB's website
at http://www.fmb.org.uk
or http://www.interbuild.com
Dual
Seal gets Tough with £1.25 Million Investment
Over
£1.25 million has been invested in new plant and premises by Dual
Seal Glass Limited, independent manufacturer of ‘long life’
sealed units and specialists in soft coat low emissivity glasses.
‘Already
certified to EN 1279 Part 2 (part 3 pending), Dual Seal is one of the
UK’s leading sealed unit manufacturers and one of very few able to
deliver soft coated units giving U-values as low as 1.1.’ says the
company.
The Huddersfield company has moved to a new factory in the town, almost
trebling the size of its premises, in order to bring in a Tamglass toughening
plant and additional new machinery to increase its manufacturing capabilities
and overall capacity.
Bringing toughening operations in house has been a priority for the company,
and as Nigel Meredith, MD, explains, will bring considerable customer
benefits: ‘Most of our units are destined for the commercial sector.
Our contractors have demanding schedules to adhere to and need to have
total confidence that Dual Seal will deliver on time, every time. Being
able to control all aspects of the manufacturing process means increased
availability over stock, better control over delivery and improved quality
control.’
Nigel adds: ‘We knew we would have to relocate to accommodate the
toughening plant, and by doubling the size of our premises, we have also
had the opportunity to totally overhaul and extend our manufacturing lines.
We’ve also brought in a Hegla edge deletion/cutting table, an Ashton
horizontal glass washer, and a Reinhardt direct gun sealant machine to
further improve our efficiency.’
Nigel concludes: ‘This is an enormous investment for Dual Seal, but
we are confident that we have made the right move. We’ve increased
our capacity to almost half a million units per annum and we’re in
a position to offer all our customers a full range of unit types to meet
all requirements.’
Tel: 01484 420030
Heritage
Glass Launches New Garage Door Division
Heritage
Glass Group has just launched a new garage door division, which will be
managed by Paul Histon. The new division will cover all of Shropshire
and Runcorn, and supply the area with a wide selection of top quality
garage doors from suppliers such as the Cardale Group.
Paul
will be able to fit all types of doors on behalf of Heritage Glass, and
as there is a wide range to choose from, customers can decide on the design
that best complements their home.
The garage doors are available in standard and made-to-measure sizes,
and come in a wide range of materials and finishes from galvanised steel
and low-maintenance plastic doors to GRP and timber doors.
‘I am very excited to be a part of Heritage Glass Group, and am looking
forward to making the garage door division a success,’ says Paul.
‘The products available are from established and well-respected suppliers,
which means that all our customers can be assured that our garage doors
are of the highest quality.’
Customers will also benefit from the Heritage Glass customer care and
after sales policies, which have been put in place to reassure customers
that salesmen will follow a code of practice when dealing with all enquiries,
and that support is still there after the job has been completed.
Tony Randall, director of Heritage Glass said, ‘Paul will be taking
the garage door division into Shropshire and Runcorn, with the latter
being a new area for Heritage Glass – so not only is it an exciting
prospect to be launching a new division, but we are also excited about
expanding into a new area, as it will uncover many new prospects for the
company. I am very much looking forward to working with Paul, and developing
this division further.’
(Pictured: (left to right) Tony Randall, director of Heritage Glass
Group and Paul Histon, who will be responsible for the new garage door
division at Heritage Glass Group.)
Monkey
Business as Glasslam Celebrates in China
Glasslam
has just had a double celebration in China, firstly Glasslam and its 300
employees welcomed in the year of the Monkey in traditional style. Secondly
the company was celebrating the opening of its second factory in Mainland
China.
Steve Howes C.E.O. and Phil Popple of Glasslam were in China to attend
the opening of the new facility, which is the distribution hub for Asia
and the South Pacific regions. The year of the Monkey will see Glasslam
launching a new stained glass system equivalent to it's successful Bevelpane
product.
'This new system will signal the end of the Cad resin system making it
the slower alternative.' says the company.
Tel: 01795 430228
Email: mailto:glasslam@aol.com
Web: http://www.glasslam.com
New
Distributor Agreement for Carl F
A
trading relationship dating back to 2001 between hardware distributor
Carl F Petersen and Hoppe has been cemented with a distributor agreement.
Taking a highly selective approach to distributor partnerships, Hoppe
– supplier of aluminium and brass door and window furniture - looked
for a number of shared values from Carl F including emphasis on service
and product quality.
Commenting, Hoppe UK’s national sales manager, door and window division,
Robert Hartill said:
‘Our strength is in manufacture with emphasis on product design,
durability and quality. It is important to forge distributor links with
companies like Carl F who have a proven track record of excellent customer
service.
'We are frequently approached by supplier organisations who wish to become
Hoppe distributors and we regularly decline such proposals. The agreement
with Carl F is testimony to the fact that the company sets some of the
highest service
standards in the industry.’
Photograph shows HOPPE UK national sales manager, door and window division,
Robert Hartill (left) with Bruce Bradshaw, business development manager,
Carl F Petersen.
Tel: 01536 401155
Email: mailto:sales@carlf.co.uk
Web: http://www.carlf.co.uk
James
Price Expands Fleet to Meet Demand
The
James Price Group has expanded its vehicle fleet in order to meet the
increased glass business across all divisions of the Group.
Substantial investment in new technology and systems has seen the processed
glass division double its turnover in just 12 months including the production
and installation of architectural glass for a range of applications from
facades, frameless glass doors to balustrading. The Tuff X toughened safety
glass and double glazed unit division is now producing some 2000 IG units
per day. With the installation of a new £70,000 Hegla automatic
cutting table and an aspirated EFCO furnace Tuff X can cut and temper
soft coat glasses as well as hard coat enabling the company to meet the
increasing demand for toughened Low E glass in its double glazed units.
An additional service for James Price customers is the investment in a
screen-printing production line that is proving of particular value in
architectural and corporate applications.
Chris Roberts, James Price plc sales manager commented: 'The investment
in the latest technology and the subsequent high demand for our products
has meant that we have increased our fleet to some 20 vehicles ranging
from Transit types to 18 tonners enabling it to deliver processed glass
and DG units to its customers throughout the UK whatever the size of the
order.'
For information about the James Price Group products and services call
0151 523 7070
email info@jprice-group.co.uk
or visit www.jprice-group.co.uk
Wendland
and K2 back new Conservatory Market Report
A
recent, in depth study of the important UK Conservatory Market confirms,
with detailed statistical analysis, the surging growth most companies
have been experiencing. The report, by industry researchers Michael Rigby
Associates, is described by Alan Fielder, Sales & Marketing Director
of Wendland Roof Solutions as ‘probably the most important, detailed
and comprehensive report ever produced for our industry. No company making
its way in this exciting and dynamic sector can afford to be without it’.
The conservatory market is not only fast growing – it expanded 15%
in 2002 - but with 289,000 conservatories worth just under £2.2
billion in 2002 excluding bases and brickwork it’s a bigger market
than some published reports suggest. The market increased a further 15%
in 2003 and is expected to grow by 12% this year. Although growth is expected
to slow in 2005 market prospects are excellent with just 15% market penetration
so far, and much to go for.
A
K2 Conservatory
Over twice as many home owners aged under 35 bought a PVC conservatory
in 2002 compared with 1998. Lighting continues to be the most commonly
installed accessory in conservatories, while 84% of conservatories were
fitted with French doors. The report goes into detail on sizes, styles
and prices of building, type of accessories, use of glass and size and
type of polycarbonate. It even includes who installed and invoiced for
the bases.
Where the report really scores is in its profiles of the major players,
with their market shares, and discussion of the issues, and distribution
channels with 14 detailed charts tracking the many different routes to
market by volume and value.
‘Michael Rigby Associates have again exceeded expectations with the
UK Conservatory Report for 2003,’ comments Iain McInnes, Marketing
Director of K2 Conservatory Roof Systems. ‘Insight and structured
thinking has resulted in a comprehensive and effective piece of research
- a benchmark for decision makers in the conservatory and respective complementary
markets.’
The UK Conservatory Report 2003 with forecasts to 2007 is published by
Michael Rigby Associates in two volumes. It has 128 pages, 57 tables and
61 charts and is available at £3,995 plus VAT. For a complete list
of contents or to order your copy call Lucia Di Stazio on 01453 521621.
GGF
Fact Sheet explains Collision and Impact – Approved Document K
Glazing
comes under Approved Document K under the heading of pedestrian guarding:
it calls for guarding to be provided '….where it is reasonably necessary
for safety to guard the edges of any part of a floor….', including
at opening windows, and at glazing to changes in level (i.e. to provide
containment). Any wall, parapet, balustrade or similar obstruction may
serve as guarding. When placed in front of glazing, the guarding should
be a minimum of 800mm high, whatever the building.
It has been suggested that the minimum height for all guarding should
be raised to 1100mm.
• Containment and gaps in balustrades
AD K gives guidance to the effect that balustrades and similar constructions
protecting a difference in level in buildings likely to be used by young
children should not have gaps greater than 100mm. Moreover they should
be designed to be difficult to climb, i.e. no horizontal bars.
It has been suggested that more guidance is required on for example, how
to prevent children from climbing barriers.
• Research shows that, for a minimum gap size of 100mm, the number
of children at risk depending on age would vary as follows:
Age At
risk
1 year 13.12%
2 years 5.73%
3 years 3.32%
4.years 0.84%
•AD K also calls for protection against collision with open windows.
However, this section does not apply to dwellings.Why not join the GGF
and get involved in consultations such as this.
Tel: 0870 042 4255
Email: mailto:info@ggf.org.uk
Web: http:// www.ggf.org.uk
Supreme
O Glaze Home Products Ltd Advert Attracts Complaint
A
complaint, objecting to a leaflet for glazing company Supreme O Glaze
Home Products Ltd of Ilford, Essex was upheld according to published details
from the Advertising Standards Authority.
Complaint:
Objection to a leaflet for a glazing company. The leaflet stated '...
BUY ONE WINDOW GET ONE FREE ...'. The complainant, who asserted that the
advertisers refused to honour the offer, challenged the claim.
Adjudication:
Complaint upheld
The advertisers said they had no records of the complainant. The Authority
noted the complainant had sent a copy of a sales contract drawn up by
the advertisers; the Authority advised the advertisers of that but the
advertisers did not comment. The Authority noted, moreover, the advertisers
sent no documentation to explain how the offer was administered. The Authority
considered that the leaflet implied that any customer who bought windows
from the advertisers could benefit from the offer. Because the advertisers
did not substantiate that, or show they had honoured the offer, the Authority
concluded that the leaflet was misleading. It told the advertisers to
change the leaflet and advised them to consult the Committee of Advertising
Practice Copy Advice team.
Kevin
Warner Appointed Sales & Marketing Director at Status
Kevin
Warner has been appointed sales and marketing director for PVCu profile
extrusion company Status Systems. As Kevin enters his 13th year with the
company, his appointment reflects a mutual commitment to Status' ambitions
for growth, and Kevin's own personal ambitions.
'With a significant new product launch approaching in 2004, there are
excellent opportunities to really push Status forward to the next level,'
said Kevin. 'Having been involved with the original Status brand concept
back in 1991, it has been fascinating to be involved in its development
into a nationwide name, and also being a member of the world's leading
extrusion group.'
Kevin originally joined the company as area sales manager for the Midlands,
under the guidance of Gary Morton and Roy Shipley. He was then promoted
to national sales manager in 2000.
Status' general manager Chris Foreman added:
'Kevin's appointment is crucial to maintaining a consistency within what
is becoming one of the strongest, most proactive and dedicated sales teams
in the industry. His commitment, drive, dedication, loyalty and leadership
will ensure that last year's new business count of 31 new fabricators
will continue with fresh and renewed vigour.'
Tel: 01457 875731
Email: mailto:sales@status-systems.co.uk
Web: http://www.status-systems.co.uk
No
Call Backs and Higher Margins
Edgetech
says that installers increasingly want a more thermally efficient product,
and not just because of Part L legislations. ‘Professional installers
don’t want the hassle and the cost of call backs for sealed units
that have failed – something that happens more often with aluminium.’
says the company.
West Lancs Glass started using Super Spacer® in its manufacture of
sealed units four years ago, to give its installers the thermal efficiency
they were looking for. Company Director, Chris Andrews, explains why.
‘Four years ago, 100% of our sealed units were manufactured using
aluminium spacer bars. Now 70% of our 2,500 sealed units per week are
made with Super Spacer bars. This growth has been driven in the main by
most of our customers specifying the higher spec Super Spacer bars in
their units.
‘As well as enjoying the higher margins our customers can achieve
by selling a superior product, they also have peace of mind from superior
guarantees available. The new building regulations mean the buck stops
firmly with the installer and the drive to better thermal efficiency in
replacement windows and doors and new build means that more and more installers
will be looking for the best solution possible. We believe this is Super
Spacer and are confident for the future of our business as more installers
grow aware of the benefits of the technology’.
Tel: 02476 363614
LGT
is to install the first ever Toughening Plant in to Bangladesh, an event
of such high prestige that the top government ministers of Bangladesh
will be present for the first line of production.
Six months ago an enquiry from Mohammed Rahmann (Muhib), the European
representative of the company soon to become Euro Bangla Toughened Glass
came into LGT’s head office for a second hand Toughening Plant.
Since the initial enquiry LGT has worked very closely with Euro Bangla.
The environmental conditions have been acknowledged and because of their
specific requirements in this new venture LGT is ensuring that its customer
is given a premier service in customer care.
The purchase of a refurbished LGT machine is part of a £700,000
venture that Motiar Rahmann, the owner of Euro Bangla, has invested in.
The culmination of all work will be housed in a purpose built site in
the central business area of Dhaka. In addition to the furnace, LGT have
sourced and supplied Euro Bangla preparatory toughening machinery and
machinery for manufacturing double glazed units.
The shipment has been co-ordinated by LGT in accordance with Davies Turner
through its international freight terminal in Coleshill, Birmingham. The
shipment is due for arrival in Dhaka at the end of April. LGT engineers
will then begin installation of the machine, with the intention of the
machine to be running the first week of June when the Finance Minister
will be present to cut the red tape.
Tel: 01675 430438
Email: mailto:sales@lambertgtservices.co.uk
Web: http://www.lambertgtservices.co.uk
Planet
PVC Group Makes Strategic Appointments
Planet
PVC Group, the UK conservatory installer has made two senior appointments
to accelerate its drive towards flotation on the Alternative Investment
Market (AIM).
Richard Ellis joins the £50 million turnover group as marketing
& customer service director, while Steve Dunbar takes up the position
of franchise director.
Their first public appearance was promoting Planet’s 35 remaining
franchise opportunities at Glassex 2004.
Richard, aged 42, joins Planet after two years as a management consultant.
Previously he held senior marketing and commercial posts at major quoted
companies including Stanley Leisure, Whitbread and Carlsberg-Tetley.
Key to his role is the development of the Planet brand both from a consumer,
franchise partner and strategic supplier perspective.
Ellis comments: ‘The conservatory market is a huge growth sector,
but is very fragmented. There are massive opportunities for Planet as
a national player with a unique business model, to increase its market
share substantially. The development of a strong, national Planet brand
is fundamental to this growth and represents a very exciting opportunity
for the business.’
Dunbar,
aged 50, takes up his position as franchise director after running his
own management consultancy, Dunbar Associates, for a number of years.
Earlier, he was a director at national home improvement companies Portland
Conservatories and Zenith Windows. Dunbar also headed Sky TV's direct
sales operations at the time of its UK launch.
His principal goal will be to drive the expansion of the group’s
national franchise programme with the medium term aim of covering 90 per
cent of the UK population via franchised operations.
‘I was delighted to take up this rare opportunity to join Planet.
It is a dynamic and fast-expanding group with realistic plans to become
the premier brand name in the market nationally and I very much look forward
to playing a significant role in this ongoing success,’ says Dunbar,
from Chorley, Lancashire.
Dean St John, chairman, who founded the Planet group in 1995, adds: ‘The
appointments of Richard and Steve are key elements of our growth strategy
and I’m confident they will add fresh and innovative dimensions to
the realisation of our ambitions.
'We’ve already achieved our aim to be the market leader. By next
year we will have substantially increased production, have all our franchises
on board, and we’ll be looking to an AIM flotation.’
Tel: 01772 452225
Web: http://www.planetpvc.co.uk
IMI
plc, the major international engineering group, has announced its preliminary
results for the year ended 31st December 2003. IMI includes Polypipe,
the parent company of Premier Profiles. Overall, sales were slightly down
to £1573m (2002: £1612m), while operating profit was improved
at £153.5m (£145.6m) Profit before tax was slightly up at
£142.6m (£131.5m). Profit after rationalisation and restructuring
costs was £117.2m (£74.3m).
In the core Building Products business of Polypipe, volumes were ahead
of last year largely as a result of a strong UK housing market and good
growth in underfloor heating systems. Raw material prices have increased
regularly during the year creating pressure on margins.
Elsewhere in Polypipe the picture is mixed. The small European businesses
are now stable following organisation changes but further rationalisation
measures may have to be taken in some of the UK businesses.
Despite margin pressures, Polypipe as a whole produced a very creditable
performance and cash generation was again excellent, with further working
capital reductions producing operating cash in excess ofoperating profit.
Buiding Products Division Sales and operating profit for the year were,
respectively, £370m (2002: £355m) and £33.0m (2002:
£33.1m).
DuPont
Acquires Czech Republic PVB Business
DuPont
announced on February 18th that it has acquired Retrim, a safetyglass
interlayer company, with plant operations in Zlin, Czech Republic. Terms
were not disclosed. DuPont said Czech Republic government regulatory approval
was received in January.
DuPont will acquire the complete Retrim business, including some 50 employees
and proprietary technology allowing the re-use of polyvinyl butyral (PVB)
trim materials produced during the manufacture of automotive and architectural
laminated glass.
'This acquisition is consistent with the company's stated goal of increasing
its presence in growing markets. And, it helps DuPont offer improved efficiency
and value-adding services to DuPont customers,' said Craig F. Binetti,
vice president and general manager - DuPont Packaging & Industrial
Polymers. 'Adding a safetyglass interlayer manufacturing plant and PVB
expertise in the Czech Republic bolsters DuPont presence in dentral and
eastern Europe so we can be a preferred supplier and innovator in those
markets.'
Binetti said DuPont anticipated a smooth transition of ownership with
no supply or other interruptions for existing Retrim customers. He said
PVB products from the Czech plant will continue to be marketed using the
Czechtrim® brand.
'Acquiring Retrim also underlines the commitment of DuPont to environmentally
responsible manufacturing,' Binetti said. 'The acquisition will allow
DuPont to make the best use of available techniques for using recycled
PVB in making high-quality interlayers for use in safetyglass.'
In addition to its new Czech Republic facility, DuPont Glass Laminating
Solutions manufactures Butacite® and SentryGlas® interlayers at
sites in the United States, Korea and Germany. Business sales are reported
as part of the DuPont Performance Materials platform, with $5.3 billion
in sales in 2003.
Tel: 01438 734835
Alcoa
to Open Extrusion Facility in Northwest Romania
Alcoa
announced on March 12th that its European Extruded & End Products
division will start construction of a new extrusion facility in Arad County,
in northwest Romania, to serve customers in the building and construction
market.
Upon completion in the second quarter of 2005, the new facility is expected
to employ approximately 200 people. The plant will have two press lines
in operation and will supply building and construction products to commercial
and residential customers throughout Europe.
Alcoa's European Extrusion Products business noted the cooperation and
excellent support it has received from all areas of the Romanian regional
community. 'Without exception, the information, openness, and willingness
to work with Alcoa were critical to our decision to begin operations here,'
said Philippe Royer, President of Alcoa European Extrusions & End
Products.
The Arad facility will be Alcoa's third facility in Romania. Alcoa Fujikura
has two Automotive plants in Romania - one in nearby Chisineu Cris and
the other in Caransebes in southern Romania.
The new facility will be part of Alcoa European Extrusions & End Products'
manufacturing system of more than a dozen facilities throughout Europe.
The business recently opened a new extrusion press line in Szekesfehervar,
Hungary.
Web: http://www.alcoa.com
Alcoa Expects Chinese Government Approval of Pingguo Joint Venture
Alcoa
announced on March 12th that it expects Chinese government regulators
to approve the company's proposed joint venture with Aluminum Corporation
of China Limited (Chalco) for an integrated alumina-aluminum facility
in Pingguo.
As part of the strategic alliance, Chalco and Alcoa are forming a 50/50
joint venture at Chalco's facility at Pingguo, to benefit from the growth
of China's aluminium market, the fastest growing in the world.
The parties have committed to significantly increase both the refining
and smelting capacities at Pingguo over the next few years. Following
a recent alumina expansion, the capacity of the alumina plant is 850,000
mtpy. There are also plans to expand the 130,000 mtpy aluminum smelter
at Pingguo by 250,000 mtpy, bringing total capacity to 380,000 mtpy by
2006. Based on recent discussions with Chalco and representatives from
the Chinese government, Alcoa expects to finalise the necessary arrangements
and obtain government approvals in 2004. No U.S. regulatory approvals
are required.
Chalco is the leading alumina producer and the largest producer of primary
aluminium in China. Its mining, refining and smelting operations are the
largest in the Chinese aluminum industry.
Alcoa also is expecting approval shortly of its joint venture with China
International Trust & Investment, its equity partner in Bohai Aluminum,
to expand a rolling mill in Liaoning Province. Alcoa expects to invest
approximately $200 million on the facility to serve customers in multiple
markets, including transportation. Alcoa and China International Trust
also own a foil facility in Liaoning.
Web: http://www.alcoa.com