Glaverbel
Group's First Quarter
Resisting the Economic Slowdown Against the background of a slowdown in the economy, the Group's performance in the first quarter of 2002 was in line with its forecasts, i.e. slightly down on the results for the corresponding period in 2001.
Consolidated sales in the first quarter amounted to EUR 468.5 million,
compared with EUR 453.8 million one year previously. This represents a
rise of 3% (or a decrease of 3% for the same consolidation scope)*, thanks
mainly to the contribution by Bor Glassworks (RU). Also during the first
quarter, the operating income amounted to EUR 55.9 million, compared with
EUR 60.6 million last year, down by 8% (or 14% for the same consolidation
scope). The net income (Group's share) amounted to EUR 32.3 million, down
11% compared with the first quarter of 2001.
The Building division suffered a contraction in activity, leading to a
fall in volumes and prices whose effects could not be entirely offset
by the growth in sales of products with high added value. This led to
a decline of 18% in the operating income.
The Automotive division for its part enjoyed strong profitability growth
from one quarter to the next (an increase of 27%), with a good volume
of activity. However, during the first quarter of this year there was
a relative slowdown in its operational recovery plan, with the startup
of new production facilities.
The Industries division recorded a slight decrease in its operating income,
mainly due to the contraction in the furniture market.Given the first
signs of an upturn in the economy, in particular in Germany, together
with the reduction in capacity by putting the Tiel (NL) float plant on
standby during the next quarter, the Group confirms its forecast for a
net result in 2002 that is slightly down compared with the previous year.
* The changes in the consolidation scope concern the Fosbel joint venture
and Bor Glassworks (RU), which were consolidated by the equity method
at the end of Q1 2001; the former is now proportionately and the latter
fully consolidated.
Asahi
Holds Over 91% of Glaverbel at the End of the Public Offer
At the end of the public offer, which took place between March 18 and
April 5, 2002, Asahi Glass Co., Ltd held, directly and indirectly, 91.45%
of the share capital of Glaverbel. 26,674 convertible bonds were also
tendered, which represents 98.80% of the total issued.
The payment of a price of EUR 145 per share of common stock and EUR 3,641.53
per convertible bond will take place on April 15, 2002.
In accordance with Article 32 first indent of the Royal Decree of November
8, 1989, Asahi Glass will reopen the offer between April 15, 2002 and
May 6, 2002 on the same terms.
'The level of acceptances of shares and convertible bonds', said Mr. Masayuki
Kamiya, Director Corporate Planning of Asahi Glass, 'ensures an overall
Asahi's holding in excess of the threshold of 90% to which the offer was
conditional. Today Asahi already holds 91.45% and we are confident that
by reopening the offer we will obtain at least 95% of the Glaverbel shares.'
Annual
General Meeting of Assa Abloy AB
At yesterday’s Annual General Meeting of shareholders in Assa Abloy
AB, all the members of the board – Georg Ehrnrooth, Melker Schörling,
Gustaf Douglas, Per-Olof Eriksson, Göran J Ehrnrooth, Carl-Henric
Svanberg and Sven-Christer Nilsson – were re-elected. At the Statutory
Meeting following the General Meeting, Georg Ehrnrooth was re-elected
Chairman of the Board.
The General Meeting established the dividend proposed by the Board of
Directors and the Managing Director amounting to SEK 1.00 per share. Friday
3 May 2002 was established as record day and payment from VPC (the Securities
Register Centre) is expected to start on Wednesday 8 May 2002.
Amendment of the Articles of Association and Election of Auditor
The General Meeting decided to amend the Articles of Association so that
not only named auditors, but also a registered accountancy firm, can be
elected to audit the company’s management and accounts. The auditor
in office before the General Meeting, Anders Lundin, will forthwith be
the representative for the accountancy firm elected by the General Meeting,
PricewaterhouseCoopers AB.
Assa
Abloy in Full Pursuit
Leg 6 of the Volvo Ocean Going Race was an 875-mile long sprint up the
American east coast. After three days of racing, ASSA ABLOY finished third,
beating illbruck with only three minutes.
The leg proved to be a real sprint, constantly trimming the sheets, changing
the sails and fencing off the competition only interrupted by 20 minute
power naps in between.
The day after arrival Assa Abloy left the dock again. It was another exceptionally
hot and sunny day, with perfect conditions to test the new light air sails
on Chesapeake Bay.
Photo
by ASSA ABLOY crossing in front of illbruck after the start: Photographer:
Thierry Martinez
ASSA ABLOY Battles illbruck at the Start of Leg 7
There were two code zero type sails with strong names like the Bitch (as
it so heavy and hard to handle) and the C-sail on the agenda for a closer
inspection. These sails are furled and hoisted in the topmast and a development
of the code zeros. But also the new code 2 (light downwind gennaker) went
up and down a few times and was compared with the previous Code 2. Digital
pictures are used to analyze and compare the shape and performance of
the various sails.
Magnus Olsson was very pleased with the results.
'This feels good. We’re out here sail testing while the other teams
are still recovering or partying or what ever. Our boat is in great shape
and does not need a lot of attention, leaving us to focus on the sails.
We’re in full pursuit of the competition.'
The
C- sail (right) is made from the super light and exclusive ‘Cuban’
fibre and was used during leg 6 and proved to be decisive. It gave the
winning edge when Assa Abloy crawled up to illbruck in extremely light
conditions. Thanks to the C-sail and good crew work, the Assa Abloy managed
to pass the Germans for third place. The brief to the sail designers and
makers was for a topmast wind seeker. After a successful leg and a close
inspection; all agreed that the sail is a beauty.
Leg 6 finished, restart 28 april
Position Yacht Total points
1 illbruck 41
2 ASSA ABLOY 34
3 Amer Sports One 32
4 News Corporation 31
5 Tyco 27
6 SEB 21
7 djuice 21
8 Arner Sports Too
FMB
Backs Commons Early Day Motion (1099) to Annul Self-Certification Schemes
The Federation of Master Builders (FMB) has declared its support for an
Early Day Motion (1099) laid by Alan Beith MP that seeks to annul Statutory
Instrument 2002/440, which establishes a number of self-certification
schemes, for different trades under the Building Regulations. These include
the FENSA scheme for glazing and HETAS for solid fuel combustion appliances,
OFTEC for oil-fired combustion appliances and the Institute of Plumbing
Approved Persons Scheme for foul and surface water drainage.
The FMB has already declared its opposition to multiple self-certification
schemes across narrow sectors of the construction industry - which it
believes would be economically damaging to small and medium sized businesses
and render them uncompetitive with rogue traders - and criticised the
consultation process for omitting the views of general builders.
Speaking last week, Andrew Large, FMB's Director of External Affairs said:
'The FMB has always believed that the Government should have consulted
the general building industry as well as specialist trades prior to introducing
this Statutory Instrument. We have campaigned with the Federation of Small
Business (FSB) for the Government to withdraw the SI to allow for such
consultations.
'As the Government has not withdrawn the SI, we would ask all MPs to support
Alan Beith's Early Day Motion so that the general building industry will
have the opportunity to be heard on this important subject.'
Small
Comfort, Missed Opportunity, Says FMB in Budget Response
The Federation of Master Builders (FMB) says the Chancellor missed yet
another opportunity to help legitimate small and medium sized building
firms, and crack down on the cowboy element in last week's Budget.
The FMB welcomed the elements of the Budget designed to reduce the financial
and administrative burden on small businesses through reductions in corporation
and capital gains tax and reforms on VAT that will simplify arrangements
for businesses with a turnover under £150K. However, the FMB is
concerned that these positive changes may be negated by the 1% increase
in Employer's National Insurance contributions.
The FMB is particularly disappointed that the Chancellor has not reduced
VAT rates on domestic RMI work, which it believes would play a major role
in driving rogue traders out of the industry.
Commented FMB Director General, Ian Davis:
'We will obviously need to study the detail of the Budget, but our initial
reaction is one of disappointment. In a labour intensive industry such
as ours, the rise in NI contributions may wipe out any gains made by small
businesses on tax and VAT reforms.
'By failing to address the issue of VAT on domestic RMI work, the Chancellor
has once again missed an opportunity to crack down on the cowboys that
cause so many problems for homeowners.
Unfortunately, the additional NI contributions introduced in the Budget,
will serve to increase the gulf between legitimate and rogue traders.'
Kyro acquires
Uniglass
The purchase of all shares of Uniglass Engineering Oy by KyroCorporation,
as announced on 12.3.2002, has been confirmed. As of this date, the shares
have been transferred to the ownership of Kyro Corporation.
The parties to the agreement have agreed not to announce theacquisition
price. A part of the acquisition price has been paid in Kyro Corporation’s
own shares. Uniglass Engineering Oy will continue its operations as an
independent company within the safety glasstechnology business area of
the Kyro Group.
Uniglass Engineering Oy’s business operations comprise the design,
sale and maintenance of tempering furnaces. The company’s net sales
in 2001 was approximately EUR 10 million, and its employees number approximately
40.
Kyro Corporation’s net sales amounted to EUR 147 million in 2001.
The group’s most significant subsidiary is the global technology
and market leader in safety glass machinery, Tamglass, whose net sales
in 2001 was approximately EUR 120 million and whose employees number approximately
430.
Changes
at the Top; a personal announcement from Wagner MD, Peter Kinze.
I should like to announce some recent personnel changes at Wagner (GB)
Ltd, concerning John Vaux, Steven Sale and Bob Hayes.
During
their time at Wagner, all having joined in the mid-1980's, the three have
demonstrated outstanding commitment to the company, and along with natural
market forces, helped to mould it into what we see today.
In recognition of the achievements of all three I made a recommendation
to the VBH board which was agreed to, and I am therefore delighted to
announce that John will now join me as Joint Managing Director, whilst
Steven and Bob will take on the roles of Sales Director and Commercial
Director respectively.
I wish to congratulate my colleagues personally on their new appointments
and wish them, and all at Wagner (GB) Ltd, continued success in the future.
I would also like to take this opportunity to thank all of our friends
in the industry, customers and suppliers alike, for their continued support,
as strong partnership is the key to the growth that has been enjoyed so
far.
Web: http://www.wagnergb.com
Prowting
Hopeful of Recovery After Dire 2001
Prowting's full-year profits have plummeted after a tough second-half.
Its second-half losses led to pre-tax profits falling by 87% to £3.7
million. A year earlier, the housebuilder made profits of £27.5
million.
However, Prowting says the current year has started well, with a good
flow of visitors to its sites and a 'healthy' level of reservations.
Chairman Richard Fraser says: 'After a particularly difficult year, we
are in the process of putting Prowting Homes back on firm foundations,
and are optimistic about the prospects for medium-term business recovery.'
He says the group now has a well thought out and realistic business plan,
which is being implemented by 'high quality and well-motivated' senior
management.
Mr Fraser says: 'We are backing this up with tight controls at the centre,
and I am confident that we will be able to enhance the already substantial
asset base of the company in the years ahead.'
He warns that the first-half of the current year will still be affected
by the difficulties encountered in the second-half of last year. But he
says the recovery strategy is already showing improvements to the group's
underlying performance.
In the year to February 28, Prowting sold only 1,307 homes - the lowest
level for five years and some 15% below last year's figure.
The average selling price increased by nearly 8% to £162,000 as
a result of sales price inflation, producing turnover of £231 million,
down from £245 million.
Source: http://www.ananova.com
Persimmon
Eyes Strong UK Housing Market
Persimmon says it's confident the UK housing market will remain robust
in 2002. The company is selling homes at prices ranging from £50,000
to more than £1.25m.
Some 73% of this year's sales to date have been priced below £150,000.
The average selling price is currently £132,000.
The York-based group says all of its markets remain strong. It says demand
and selling prices are particularly good in Scotland and the North.
Persimmon states: 'Long experience has shown us that increases in interest
rates alone will not affect demand for our homes, and we are confident
that demand will continue to exceed supply for the foreseeable future.
'This is despite the Government's current efforts to improve the planning
process, which we welcome.'
Source: http://www.ananova.com
Von
Ardenne acquires Glass Coating Business of BOC Coating
BOC Coating Technology, part of BOC Edwards, announced the sale of its
glass coating business to Von Ardenne Anlagentechnik GmbH, Dresden, Germany.
Von Ardenne has incorporated a new subsidiary company, Von Ardenne Coating
Technology, Inc., to acquire the business, which consists of net assets
of less than £10 million.
BOC Coating Technology, of which the glass coating business is part, is
based in Fairfield, California and employs around 120 people. About 70
of the BOC Coating Technology permanent staff will transfer to the new
company.
Dr. Peter Lenk, Chief Executive of Von Ardenne, commented that this was
an important milestone in the growth of Von Ardenne Anglagentechnik, which
began in 1995. This is the first investment of the Dresden company in
a business outside Germany.
'Raj' Rajagopal, Chief Executive - BOC Edwards, added, 'BOC Edwards is
concentrating on the semiconductor industry and applications for vacuum
technology in a number of specialist markets. The glass coater business
sits more comfortably in the hands of a company whose capabilities cover
a range of large industrial vacuum systems and we expect the business
to flourish in the years to come.'
Temescal, the other business at the Fairfield facility, will be retained
by BOC and will remain at Fairfield for the time being.
PPG Reports On Quarter, Maintains Focus On Strengthening
Balance Sheet
PPG Industries first quarter net income was $34 million, or 20 cents a
share, including one-time after-tax charges of $55 million, or 33 cents
a share, for restructuring and $9 million, or 5 cents a share, for the
cumulative effect of a required accounting change. Excluding these charges,
net income was $98 million, or 58 cents a share. Sales for the quarter
were $1.9 billion.
First quarter 2001 net income was $56 million, or 33 cents a share, including
an after-tax restructuring charge of $71 million, or 42 cents a share.
Excluding the charge, net income was $127 million, or 75 cents a share.
Sales for the quarter were $2.1 billion.
'To improve our business mix, from 1997 to 1999 we made more than $2 billion
in acquisitions, most of them involving overseas coatings operations,'
said Raymond W. LeBoeuf, PPG chairman and chief executive officer. 'As
we integrated these acquisitions, we saw further opportunities to reduce
costs. And beginning in September of 2000, when it became apparent to
us that a U.S. recession was a real possibility, we accelerated our actions
to reduce our costs, particularly in the coatings segment, resulting in
the $101 million pretax charge in the first quarter of 2001. Last year,
despite the worst manufacturing recession in the past 20 years, we actually
strengthened our balance sheet, increasing operating cash flow by nearly
$200 million and reducing capital spending by $375 million, enabling us
to reduce debt by 20 percent.
'Three months ago we announced we would record an additional restructuring
charge in the first quarter of this year because last year's actions revealed
additional opportunities to make efficiency gains and meaningful improvements.
The $81 million pretax charge we announced today will enable us to reduce
and restructure our workforce further and to close facilities or parts
of facilities no longer needed as a result of improved business processes.'
LeBoeuf said PPG will remain focused on strengthening its balance sheet
in 2002.
'Although some of the economic news this year is encouraging, we have
not seen any significant signs of strengthening in our major markets other
than North American vehicles. As a result, we plan to maintain our focus
on generating cash and reducing debt in 2002. Though the timing and pace
of business expansion remains uncertain, I'm confident that our prudent
actions are appropriate. If the global economy grows quicker and stronger
than expected, we are well-positioned to reap the benefits.'
In the quarter, the provisions of Statement of Financial Accounting Standards
No. 142, 'Goodwill and Other Intangible Assets,' were adopted, resulting
in a cumulative effect of an accounting change of $9 million after-tax
to reflect an impairment in the carrying value of certain trademarks within
the coatings segment. Also, in accordance with the new standard, the carrying
value of goodwill and trademarks will no longer be amortized and will
instead be tested for impairment annually. Such amortization reduced 2001
first quarter earnings by $8 million after-tax, or 5 cents a share.
As reported last year, earnings in 2002 include the impact of higher pension
and retiree medical benefit costs.
Coatings segment sales were down 5 percent because of volume declines
in automotive original equipment and refinish, as well as industrial and
aerospace. The largest declines occurred in Europe with North American
volumes down only 1 percent. Operating earnings exceeded year-ago levels,
driven primarily by cost reductions and lower raw material prices.
A 12-percent decline in volumes and a 3-percent decline in pricing led
to lower glass segment sales and earnings. Cost reductions in every business
were more than offset by at least 10-percent volume declines in every
business but automotive original equipment.
Chemical segment sales and earnings declined on sharply lower commodity
pricing. This impact on earnings was more than offset by lower natural
gas costs, cost reductions in every business, a 20-percent volume growth
in the optical business driven by the introduction of new products and
lower restructuring costs.
Web: http://www.ppg.com
PPG Chairman: Company Has Never Been Stronger
PPG Industries' quick action to reduce costs and strengthen its balance
sheet in 2001 was reflected in its stock price and is recognition that
'our company has never been stronger,' Chairman and Chief Executive Office
Raymond W. LeBoeuf said at the company's annual shareholders meeting last
week.
'Last year we easily surpassed our peers in terms of total shareholder
return -- whether you compare us to the Standard & Poor's 500, the
S&P Chemicals Composite, the S&P Basic Materials Index or our
major competitors,' LeBoeuf said. 'Our focus on costs, as well as our
operating discipline, honed during countless economic downcycles throughout
our company's 119 years, enabled us to strengthen our balance sheet despite
the worst industrial recession in 20 years.'
Though net income was down $233 million in 2001, PPG increased its cash
flow from operations by nearly $200 million and reduced capital spending
by $375 million, enabling the company to reduce debt by about 20 percent.
PPG's total debt stands at $2.4 billion, which represents about 44 percent
of total capital, down from 50 percent at the end of the first quarter
2001.
While PPG's financial results reflected the challenging economic environment,
'We were quite busy in 2001, and I might add, quite successful in accomplishing
the things that position us to improve our earnings performance on an
ongoing basis and to reach new heights when the economy rebounds,' LeBoeuf
said.
For example:
- PPG's fiber glass business unit, 'embracing our Quality Process with
vigor,' drove down costs and increased throughput, enabling one facility
to still make money while operating at just 30-percent capacity. In the
last recession, the break-even operating rates for PPG's fiber glass plants
were in the 60-percent range.
- PPG launched its latest breakthrough glass technology, SunClean self-cleaning
glass.
- Its LYNX Services business processed a record number of auto glass claims
and is now entering the vehicular collision damage claims business.
- In 2001, PPG launched its CertifiedFirst Network of auto body shops
and is well on the way of reaching its goal of 1,200 participants this
year.
- The company's Enviro-Prime electrodeposition coatings for automobiles
received a 2001 Presidential Green Chemistry Award from the U.S Environmental
Protection Agency.
- For the second consecutive year, PPG was named to the Dow Jones Sustainability
World Index, which rates companies around the world on their financial,
environmental and social performance.
'We accomplished so much in 2001 because we at PPG have learned over the
years to maintain our focus regardless of economic conditions,' LeBoeuf
said. 'Since 1997, that focus has been trained on increasing earnings
growth and improving the cyclical performance of the company. To achieve
these objectives, PPG has been pursuing a three-point strategy of building
a better business mix, creating breakthrough products and improving our
customers' results.'
The efforts to build a better business mix over the past five years had
a positive impact on PPG's 2001 performance. From 1997 through 1999, PPG
invested more than $2 billion on more than 23 acquisitions. During that
same period, the company divested two of its most cyclical businesses
- European flat and automotive glass. 'As a result (of acquisitions and
divestitures), our operating margins in 2001 were significantly better
than the recession of 1990-91,' LeBoeuf said.
Last week PPG announced an $81-million pretax restructuring charge in
the first quarter to reduce and restructure its work force further and
close facilities or parts of facilities no longer needed as a result of
improved business processes.
PPG strengthened both its business mix and balance sheet in 2001, LeBoeuf
said, without sacrificing its commitment to customer service and technology.
For example, this year Transitions Optical - PPG's joint venture with
Essilor International - introduced Next Generation Transitions lenses,
which are as clear as regular eyeglasses, but outdoors darken as much
as necessary, even getting as dark as sunglasses.
Another example of PPG's R&D success is FrameCoat electrodeposition
coatings for automotive and light-truck chassis components. Last month
the technology received a prestigious PACE Award - sponsored by Automotive
News magazine and Cap Gemini Ernst & Young.
PPG is the only coatings manufacturer to receive the honour three times
since the programme for automotive supplier innovation began in 1994.
Nearly 40 percent of PPG's sales were generated by products that didn't
exist five years ago, LeBoeuf said.
IMI
plc announces preliminary results
IMI plc, the major international engineering group, has announced its
preliminary results for the year ended 31 December 2001: Sales were slightly
up at. £1642m (2000: £1615m); Results before rationalisation
& restructuring costs : Operating profit was £151.4m (2000:
£182.9m); Profit after interest £126.1m (2000:£154.9m)
CHAIRMAN'S STATEMENT
‘2001 was a year of major change for the Group, with a new management
structure and a strategy review resulting in a plan which significantly
repositions the Group into the two business areas of Fluid Controls and
Retail Dispense.
All our businesses have been managed robustly during the year, pressing
ahead with restructuring and responding well to the challenging economic
environment with decisive actions and cost cutting. There has been a strong
focus on cash resulting in operating cash flow (before rationalisation
and restructuring costs) of £182m compared to operating profit of
£151m.
The programme for the execution of the operational and strategic changes
required to restructure the Group is making sound progress. £45m
had beencommitted by the year end for rationalisation and restructuring
costs and another £35m is already planned for 2002. During the year
we spent £45m on the acquisition of BTG (Fluid Controls), Display
Technologies (Retail Dispense) and,
also in Fluid Controls, a number of small Indoor Climate service and commissioning
businesses.
Disposals during the year realised £53m net of costs. In June we
sold a number of the valve businesses and in October we sold the remaining
Marston cooling business. Since the year end we have also sold the Eley
shotgun cartridge business for £1.6m and, in severe service, we
have agreed to acquire STI of Italy for £4.2m.
Our remaining Building Products businesses are being actively managed
and opportunities further to reduce the cost base have been taken. Each
of these businesses is performing well in the current economic conditions,
producing good profit and cash.'
The chief executive made the following comment:
‘Those businesses earmarked for future disposal fall within Building
Products. The management of these companies fully understand the position
of their respective businesses and are actively engaged in improving the
cost base and exploiting market strengths. Despite a difficult trading
environment, their results are commendable and I congratulate them on
their contribution this year.
For IMI the strategy is clear and is being pursued with purpose and determination.
Our plan to deploy our assets and resources more effectively is on target,
and further portfolio realignment will come in due course. Our businesses
will be focused increasingly on adding value for both customers and investors
by exploiting our expert market knowledge, intellectual property andfirst
class supply chain management. Over the coming years we will realise the
full potential and deliver the value that our shareholders expect of us.'
BUILDING
PRODUCTS
Sales: £555m (2000: £544m)
Operating Profit: £47.8m (2000: £54.8m)
Polypipe
volumes recovered going into the second half, with access to major road
and agricultural programmes returning to normal after the difficulties
of poor weather and foot & mouth earlier in the year. The pipes business,
the largest single part of Polypipe, continued to trade well and contributed
a strong performance in both profit and cash. With the benefit of tight
expenditure
controls the other UK Polypipe businesses improved as the year progressed.
Downsizing and a plant closure were required in the small European businesses,
which continued to struggle.
PVC Industry
Publishes its Second Progress Report and Proves Voluntary Action Delivers
The second Voluntary Commitment progress report from the European PVC
industry shows that they have been forging ahead with continuous environmental
improvement and resource efficiency through a 'learning by doing' approach,
strengthening the partnership within their supply chain.
It comes at a time when the industry is growing increasingly frustrated
with delays by the
European Commission in publishing the Communication on PVC after five
years of work, studies and extensive consultation.
'We are proud to see that the voluntary approach set in motion four years
ago is delivering real progress,' said Jean-Pierre Pleska, Chairman of
Vinyl 2010. 'This second report fulfils our promise to publish an annual
progress review. The key challenge that we now face is achieving targets
within the deadlines we have set for improving sustainability across the
whole PVC lifecycle, from production and use through to waste management
and recycling. We know this will not be easy because these targets are
very challenging, but we are confident and determined to succeed.'
In order to address key stakeholder comments and respond to requests from
the European Commission, the PVC industry extended its Voluntary Commitment
in October 2001. Additional commitments were included: changing more than
70 per cent of the use of stabilisers by replacing lead, and developing
recycling schemes for the major PVC applications of flooring and roofing
membranes.
This year has also seen them introduce external verification for their
progress report and develop Vinyl 2010, a legal structure to oversee future
implementation. The progress report describes how the industry has met
12 of the 15 milestones it set out last year for the responsible management
of PVC products.
A total of 6 new projects were launched during 2001, including collaborative
work with
the Association of Cities and Regions for Recycling (ACRR) and the initial
development of pan-European recycling schemes for coated fabrics and roofing
membranes.
The industry has also set out the next steps in guaranteeing accountability.
Over the next couple of months it will invite representatives from the
European Commission, European Parliament, Trade Unions, NGOs and consumer
organisations to participate in a Monitoring Committee that will independently
evaluate industry progress. A full review of its commitment will then
be undertaken in 2005.
Jean-Pierre De Grève, Executive Director of ECVM, explained the
industry's current frustration: 'After five years of work we would have
thought that the Commission has in hand all the elements to conclude on
how to reach targets and build upon the industry's commitments. We are
very concerned that some people may deliberately delay an outcome just
to continue raising questions about PVC and create unjustified uncertainties
for many downstream PVC processing industries.
'Our commitment towards continuous improvement remains absolute and we
will carry on seeking new ways to enhance the sustainability of PVC applications
that we offer to our customers.'
The British Plastics Federation has also expressed its exasperation with
the political process in Brussels. Philip Law, BPF Public and Industrial
Affairs Director, added: 'Additional independent studies from the UK,
such as the government's own comparative lifecycle analysis on PVC and
its alternatives, provide substantial assurance for politicians. The UK
PVC industry is fully behind Vinyl 2010 and the BPF has stimulated a range
of actions to turn the voluntary commitments into reality.'
http://www.pvcinitiative.com
The European Council of Vinyl Manufacturers (ECVM) - http://www.ecvm.org
The European Council for Plasticisers and Intermediates (ECPI) - http://www.ecpi.org
The European Stabilisers Producers Associations (ESPA) - http://espa.cefic.org
European Plastics Converters (EuPC) - http://www.eupc.org
The British Plastics Federation (BPF) - http://www.bpf.co.uk
Latest
Forecast by Euroconstruct: European Construction Industry can look Forward
to Growth Again Next Year
Favourable omens for BAU 2003
According to expert predictions, the European construction industry will
pick up speed again next year. 'Moderate expansion appears possible over
the course of the year. Apart from France, which will experience slightly
negative growth, and unchanged in Ireland a rise in construction volume
is expected for all countries.' This conclusion was reached by Euroconstruct,
a federation of scientific institutes with special know-how in the construction
industry, in its most recent economic forecast.
In the year 2004 scientists from Euroconstruct are actually predicting
a new record construction volume of EUR 950 billion for its 15 member
states in Western Europe and 4 member states in Central Eastern Europe
(Poland, Slovakia, the Czech Republic and Hungary). By comparison with
gross domestic product, which will rise by almost 9% between 2001 and
2004, growth in the construction industry will certainly still be much
slower. Just under 4% is the prediction for the member states up to 2004.
However, this prediction represents light at the end of the tunnel for
the industry and also for the around 1,800 exhibitors at BAU 2003. There
are high hopes that BAU in particular, as the leading trade fair for the
European construction industry, will send positive signals and mark the
end of the economic downturn. BAU has always been regarded as both a trend
and innovation exhibition for the construction industry and an economic
barometer. Anyone wanting to find out how the international construction
industry will develop in future should visit the Munich Trade Fair Centre
from 13 to 18 January 2003 and ask questions.
Real construction volume will increase to EUR 35 billion by 2004
The Euroconstruct experts estimate that the real construction volume will
increase to EUR 35 billion during the period under review, i.e. 2001 to
2004. This growth will be largely influenced by the 'Big 5': Germany,
the United Kingdom, France, Italy and Spain account for more than 70%
of European construction work. While, however, the United Kingdom in particular,
but also Italy, Spain and France will be responsible for the at times
considerable increases in construction volume, Germany will force it down
substantially on account of the fact that the negative development in
the crisis years of 2001 (-5.2%) and 2002 (-1.3%) cannot be totally absorbed
by the predicted surges in growth in 2003 (+0.8 %) and 2004 (+2.0%).
Civil engineering as the driving-force behind growth
Among the different sectors of the construction industry - housing construction,
non-housing construction (construction engineering) and civil engineering
- housing construction (47%) and non-housing construction (33%) together
account for around four fifths of the construction work performed in the
19 member states. According to Euroconstruct, the downturn in housing
construction will continue this year. It will not recover, on a wide scale,
until 2003, but only then with modest growth rates of just under 1% on
average in the member states. The situation appears similar in the non-housing
construction sector. Analysts are again only expecting a 'slightly stronger
demand boost from companies in 2004'. However, growth in the non-housing
construction sector will also be rather moderate. An increase of between
1'% and 2% is predicted for the 'Big 5'. Civil engineering services in
Europe have been continuously extended in the past few years. The growth
rate this year is expected to reach almost 3% with only Germany and Poland
acting as 'obstacles to progress'. Euroconstruct is assuming that the
share of civil engineering in the total European construction volume will
rise to almost 22% by 2004.
Stabilising effect of old building renovation
Whereas new construction work will probably decline still further in 2002
and 2003, the renovation of old buildings will continue to have a stabilising
effect on the European construction industry, according to observations
by scientists. The share of old building renovation in the total construction
volume is expected to rise to 43.7% by 2004. The highest proportion of
work on existing buildings in Europe 'exactly 50% in 2001' is accounted
for by housing construction. This share will probably rise again to 52%
by 2004. The growth rate for non-housing construction will be much more
moderate. This sector's share of old building renovation is currently
40.7% and is expected to rise to 41.4% by 2004. In the case of civil engineering,
whose share fluctuates around 30%, a slight decrease is forecast up to
2003.
The 'building growth gap' is shrinking
In spite of the signs pointing to recovery in the construction industry
in the next few years, its growth curve will probably initially continue
to be less than the growth rates for gross domestic product. According
to Euroconstruct, however, the 'building growth gap' will be reduced considerably
by 2004.
Saint-Gobain
Sekurit signs Marketing Alliance with Central Glass in the Automotive
Glass Business
Saint-Gobain Sekurit signed an agreement last week with the Japanese glass
group Central Glass to enter a marketing alliance in automotive glass
business on a global basis.
The proposed alliance aims to provide better services to Japan-based automobile
manufacturers from the global networks of Saint-Gobain Sekurit and Central
Glass, fully utilizing the business resources of the two companies. Saint-Gobain
Sekurit has worldwide operations centered in Europe, Brazil, Mexico, Thailand,
Korea and China whereas Central Glass has operations in Japan, the United-States,
Taiwan and Thailand.
Under the alliance, Saint-Gobain Sekurit and Central Glass expect to enhance
their competitiveness in the global market through efficient utilisation
of both groups’ business resources.
After a first step concentrating on joint marketing activities, the co-operation
could lead, in the future, to the establishment of joint-ventures.
Reliant
on Millenco
A proactive synergy between Birmingham fabricator Reliant Windows and
hardware manufacturer Millenco has led to an exclusive supply agreement
for all Reliant's door locks.
Warranty, security and service are significant selling points when Reliant
is out on the road selling to its domestic customers. The fabricator is
this year celebrating its 20th anniversary and has built a solid and dependable
reputation. It was vital that its new chosen lock could not just fit in
with, but enhance, this reputation.
'Millenco matches precisely the qualities we offer a typical Reliant customer,'
said Reliant's marketing director Nick Allen. 'lt also helps that they
are on the doorstep, and that we can buy from them direct. We are a firmly
entrenched Midlands company that, during two decades of trading, has taken
pride in providing a key service to the community. Our customers' safety
and security in the home has been crucial to our growth over the years.
Millenco not only demonstrated an understanding and sensitivity to this,
but could also reassure us that it could increase the value of what we
were offering.'
Tel: 01902 454543
Fax: 01902 454580
E-mail: mailto:sales@millenco.net
Website: http://www.millenco.net