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Archive for the ‘Glass & Glazing’ Category

Sign the petition and fight back against the glass cartel!

Tuesday, June 9th, 2009

I received the following email from Steve Sutherland from Dortech about a petition to the Prime Minister to instruct Lord Mandleson to investigate glass pricing activities currently being taken by the dominant glass suppliers to the UK:

The dominant Glass Manufacturers in the UK have announced price increases of up to 50% on their products, with an almost immediate effect. I find this almost unbelievable given the state of the economy and the construction industry in particular.

The timing of the announcement – in the middle of the MP’s expenses scandal, the scale – up to 50% (a nice round number), the time to implement – within a couple of weeks of the announcement, and the fact that they are all unsurprisingly going together, is in my view scandalous. One Glass Manufacturer has even confirmed that they will not honour fixed price and valid quotations – which indicates a certain lack of integrity.

At a time when all businesses are managing/reducing our costs, taking every effort to become more competitive, and support each other with fixed price agreements, the actions of the glass manufacturers clearly undermine the efforts that we are making. I have therefore started a petition on the downing street web site – web address given below, asking the Prime Minister to instruct Peter Mandleson to investigate the actions of the Glass companies. If you feel as strongly about this matter as I do, please feel free to add your name to the petition.

Although we have protested about the increases directly to our suppliers, we thought that a higher profile ‘statement’ was required, to capture their attention.

http://petitions.number10.gov.uk/Glass-prices

Thank you for your assistance

Steve Sutherland
Chairman

I urge everyone who cares about the industry and the bullying tactics of the main glass processors to sign this petition.

Industry unites against Pilkington / SGG price fixing cartel

Saturday, June 6th, 2009

It’s clear that I’m not alone in my concern about the latest glass price increases from Pilkington (and Saint Gobain) when you look at the voting in the poll I added to the website:

Glass cartel

I’ll leave the poll on the website for anybody else who wishes to place their vote.

I was also pleased to read some of the comments from my previous post, and have included below some of my favourites below:

Dave Bingham from ConservatoryLand:

I think back 20 years ago when we paid over £18 sq.metre for standard float glass and £35+ sq.metre for standard toughened.

Of course back then we would sell for £4500 what we would now sell for £3000.

We now pay less for glass, profile, hardware and all other materials that go in to the manufacture than we did 20 years ago! I do understand however that this has partly been made possible due to modern technology and efficiency.

I always believe that everything does a full circle and that prices will be forced back up somewhat, at some point.

I’m not saying that I agree with Pilkington’s price rises, it’s no benefit to me, however I do believe that they need it. It is very bad timing though.

We always immediately pass on any increases to our customers and always will do. You’ve just got to have it for those figures to work I’m afraid.

Mike Harvey Rice from Paragon Windows

If only we could persuade every company to switch to St Gobian or similar and left Pilks on their own, we would then find find the cartel busted, Pilks would under cut the others just to win some business back but of course this will not happen, Pilks biggest customers will just negotiate a better discount and this price rise will not effect them.

Derek Stocker from Uniglaze2

I would just like to respond to the comment made by Mike Harvey-Smith that the increase will not affect the big companies, I work for a large sealed unit manufacturer and we are not immune to these price increases mainly because we have no other choice but to buy from Pilks or Saint Gobain who incidently have just announced to us that our prices will be going up by the same amount. I also understand that prices have fallen to a level that cannot be sustained and prices need to rise, but what annoys me is that Pilkington’s give us all a big price hike and then low and behold their down stream branches then attack our customers with stupid prices and they then confirm that they will not be raising their sealed unit prices, in fact I have had one today where they are including the optiwhite and the Argon gas for free and holding the prices for 6 months, if anyone can tell me that £17.00 Sq.Mt for the above product is a price that is sustainable then I will eat my hat. It is obvious to me that the independents are being squeezed out of the market. Sorry Mike I am not having a go but we are all in the same boat.

Scott Nicholas from Reflex Glass

In the last round of price fixing it was reported that anyone who had suffered from the illegal activity could claim compensation through the national courts from the guilty party.

Well everyone glass processor who had purchased raw glass material from Pilks or SGG had clearly suffered!

Did anyone actually make a claim?

No, well maybe if they had then Pilks & SGG would think twice before trying it again!!!

I urge anyone who has been sent a price increase letter from their raw material supplier (Pilks & SGG) to keep it on file, this is evidence and your ticket to having that price increase refunded next time they are in court and slapped with a big fine.

Don’t let them get away with this, we can put them on notice regarding this matter and make them so sh*t scared of all the legal claims that this type of price fixing behavior will be a thing of the past!

————————————

I wonder how the big float glass manufacturers would feel if a group of larger sealed unit manufacturers worked together to fix the prices they were willing to pay for glass? And, would such action filter lower prices back to smaller companies?

Pilkington Glass Price Increase

Thursday, May 28th, 2009

As the industry struggles to come to terms with the dual problem of the deepest recession for decades and saturation in the replacement window market, Pilkington have sent the following letter to its customers informing them of impending price rises:

As you will be aware, the demand for raw glass in the UK in the last year has declined to unprecedented levels and revenues have fallen dramatically along with demand.

Pilkington has taken action to reduce its cost base and to try to balance output and demand. The Company ceased production on one float line in St Helens last October and has also closed five downstream branches across the UK. However, both demand and prices have continued to fall and despite the cost reductions, glass manufacture and supply has become uneconomic and the Situation cannot be sustained. As a result we have taken the decision to urgently and substantially increase the price of our raw glass. We understand that this will put pressure on our customers in the short term but we hope that you will recognise that it is vital in the long term to return prices to a viable level.

We will apply increases to the prices of glass products supplied by Pilkington in the UK & Ireland, commencing Monday 8th June 2009. Therefore, please be advised that, with effect from that date, price increases will be applied to all deliveries of glass products from Pilkington Building Products UK.

I’ve not included the full list of items to be increased, but the highlights are:

Pilkington Optifloat Clear 3mm-12m +50%
Pilkington Optiwhite +25%
Pilkington K Glass and Pilkington K Glass OW +10%
Pilkington Activ, Pilkington Activ Blue and Pilkington Activ Neutral +10%

In a period of deflation and increasingly cut throat competition, are installers likely to pass this price increase on to consumers? Of course not, so basically, Pilkington is forcing lower margins onto it’s customers.

Of course, if there was competition in the float glass market then we could switch to other glass suppliers, but as they work as a cartel then Guardian, Saint Gobain and Glavabel will follow suit.

Please leave your feelings on the latest Pilkington price increase below, or alternatively feel free to vote on whether you feel there is still a glass cartel in operation in the UK.

Business opportunity – glass doors

Friday, April 3rd, 2009

I think there’s a real business opportunity in fixing glass doors if you consider the competition in the market:

Window strangeness

Thursday, November 20th, 2008

Is this funny, or what? Maybe, it’s a Yorkshire thing….

Pilkington energiKare video

Thursday, November 20th, 2008

Interesting consumer video by Pilkington showing the benefits of using Pilkington Energy Rated products:

I like the thermal imaging section, although I’d be interested to see how energiKare sealed units would compare with standard double glazing, rather than single glazing.

The explanation of the Window Energy Rating System for the complete window and frame is also good for getting the message across to consumers. I suspect, though, that Pilkington energiKare has been created to prolong the life of Pilkington ‘K’ when soft coats offer better results.

But, any efforts to educate consumers towards buying energy efficient windows has to be applauded.

Double Glazing from Down Under

Tuesday, November 18th, 2008

G’day!

Interesting video from Australia showing how double glazing can actually reduce the amount of heat getting into your house:

So, for uPVC framed double glazed uPVC windows at fair dinkum prices visit:

http://www.certainteed.com.au/

If there’s any companies in Australia looking for a good supplier of uPVC windows from the UK, I’ll be on the next plane with my sample window:-)

Glass makers fined £1bn for fixing prices in car market

Wednesday, November 12th, 2008

The four main glass suppliers to the automotive industry have been fined 1.38bn euros (£1.14bn) by the European Commission.

Glass cartel news

Asahi Glass, Pilkington, Saint-Gobain and Soliver have been hit with the biggest cartel fine in EU history after being found guilty of ‘cheating’ car buyers. Saint Gobain thought the 896m euros fine it received, the largest cartel fine imposed on a single company was ‘excessive and disproportionate’.

The four companies were penalised for illegal market-sharing and exchanging commercially sensitive information.

The Commission found that they held regular discussions between 1998 and 2003 to allocate glass supplies to car manufacturers and keep their individual market shares as stable as possible.

This news follows the decision last year to fine Guardian, Pilkington, Saint-Gobain and Glaverbel for operating a similar cartel in the European flat glass market. At the time EU Competition Commissioner, Neelie Kroes, stated, “the companies will have done very well out of this cartel until today.”

Interestingly, as the energy surcharge on glass has reduced due to falling oil prices, the main flat glass suppliers in the UK have recently increased their prices by between 18-25% at a time when the window and door industry is struggling with falling demand, intense competition, business failures and decreasing margins.

Raw material price falls – great news for our industry

Tuesday, October 21st, 2008

There’s been plenty of exposure on the news about the falling oil prices, but I thought I’d have a quick look at the London Metal Exchange at the recent position of many of the raw materials we use in the PVCu window manufacturing industry.

And, I was pleasantly surprised to see the extent of many of the price falls. I took screengrabs of the graphs showing the last two years:

Zinc

Zinc price graph

Nickel

Nickel price graph

Aluminium

Aluminium price graph

Lead

lead price graph

Steel

(I’m not sure why, but I couldn’t get data for two years, but the following graph shows dramatic falls in the price of steel over recent months).

Steel price graph

Dramatic falls!

With oil now trading at a 15 month low, and PVC polymer prices having fallen over recent months, this has to be great news for the double glazing industry as a whole.

I must admit I haven’t had systems companies and hardware suppliers knocking on my door so far offering to reduce their prices! But these raw material price falls have to filter through the supply chain so that fabricators and installers also benefit.

As for glass prices and the energy surcharge … I’ll save that post for another day:-)

How not to break through windows

Monday, September 29th, 2008

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