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o o o o Monthly Info N° 249 J A N U A R Y 2009
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Responsible Editor : F. Van Houte – 89, Avenue Louise – 1050 Brussels – Belgium Tel. +32(0)2 538 44 46 - Fax. +32 (0)2 537 84 69 - e-mail. [email protected]
2 CPIV- INFO N° 249 / JANUARY 2009
I . C O M M U N I T Y N E W S
A. EU LEGISLATION
Council & Parliament Regulations
N° 1272/2008 and N° 1336/2008 of 16 December 2008
Regulations N°1272 and 1336/2008 amend previous Directives and Regulation on the classification, labelling and packaging of substances and mixtures to ensure a high level of protection of human health and the environment, as well as the free movement of chemical substances, adopting the criteria provided by the GHS system, the United Nations Globally Harmonised System of Classification and Labelling of Chemicals. The incorporation of the GHS criteria into Community legislation leads to the introduction of new hazard classes and categories only partially corresponding to the current EU classification and labelling arrangements. An analysis of the potential effects of the transition from the old to the new system of classification and labelling has led to the conclusion that the scope of the respective acts should be maintained thanks to Regulation N°1272/2008 introducing EU legislation to the new system.
Full text at : http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2008:353:SOM:EN:HTML http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2008:354:SOM:EN:HTML
15798/O.J. L353 & 354 - 08.12.31
Council and Parliament Directives
N° 2008/112/EC of 16 December 2008
This new Directive amends several Council Directives to adapt them to Regulation N° 1272/2008 on classification, labelling and packaging of substances and mixtures. The following Directives are thus updated :
- Cosmetic products (76/768/EEC) - Safety of toys (88/378/EEC) - Limitation of emissions of volatile organic compounds due to the use of organic solvents in certain activities and installations (1999/13/EC) - End-of-vehicles (ELV) (2000/53/EC) - Waste electrical and electronic equipment (WEEE) (2002/96/EC) - Limitation of emissions of volatile organic compounds due to the use of organic solvents in certain paints and varnishes and vehicle refinishing products (2004/42/EC)
Full text at : http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2008:345:SOM:EN:HTML
15799/O.J. L345 - 08.12.23
CPIV-INFO 3 N° 249 / JANUARY 2009
N° 2008/105/EC of 16 December 2008
This Directive lays down environmental quality standards (EQS) for priority substances and certain other pollutants as provided for in Article 16 of Directive 2000/60/EC, with the aim of achieving good surface water chemical status and in accordance with the provisions and objectives of Article 4 of that Directive.
Full text and list of priority substances in the field of water policy at : http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2008:348:SOM:EN:HTML
15800/O.J. L348 - 08.12.24
Council Regulation
N° 1/2009 of 18 December 2008
The temporary suspensions of the autonomous duties of the Common Customs Tariff for the products set out in the Annex shall apply from 1 January 2009. They shall expire on the dates listed in the Annex, until 31.12.2012 and 2013 for the glass products concerned.
ex 7002 10 00 (Balls of E-glass) ex 7005 10 25 & 10 30 (Float Glass) ex 7006 00 90 (Glass plate of a diagonal size of 81 cm or more and sodalime glass plate) ex 7007 19 20 & 29 00 (Tempered Glass plate) ex 7011 10 00 (Glass lenses) ex 7011 20 00 (Glass cones) ex 7014 00 00 (Optical elements of glass) ex 7019 12 00 (Rovings) ex 7019 19 10 (Yarns) ex 7019 90 99 (Other yarns) ex 7019 39 00 (Non-textile Glass fibres for air filters) ex 7019 40 00 (Woven fabrics of rovings) ex 7019 90 10 (Non-textile glass fibres)
Full text and precise description of Glass products on pages 40 and 41 at : http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2009:001:SOM:EN:HTML
15801/O.J. L1 – 09.01.05
Commission Directive
N° 2009/2/EC of 15 January 2009
The Directive adapts to technical progress, for the 31st time, Council Directive 67/548/EEC on the approximation of the laws, regulations and administrative provisions relating to the classification, packaging and labelling of dangerous substances. Member States will have to comply with this new Directive by 1 June 2009 at the latest.
Full text with annexes on page 6 at : http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2009:011:SOM:EN:HTML
15802/O.J. L11 – 09.01.16
4 CPIV- INFO N° 249 / JANUARY 2009
Commission Regulation
N° 36/2009 of 11 July 2008
The Regulation establishes for 2008 the PRODCOM List of industrial products.
This confirms that glass products are now classified as follows :
NACE 23.11 : Manufacture of flat glass
23.11.11 -10 / -30 = CN code 7003 (External Trade Combined Nomenclature) 23.11.11.50 = 7004 23.11.12.12 /14 /17 = 7005.10 23.11.12.30 = 7005 21 23.11.12.90 = 7005.29 & 30
NACE 23.12 : Shaping and processing of flat glass
23.12.11.50 = 7006 00 10 23.12.11.90 = 7006 00 90 23.12.12.10 = 7007 11 23.12.12.30 = 7007 19 23.12.12.50 = 7007 21 23.12.12.70 = 7007 29 23.12.13.30 = 7008 23.12.13.50 = 7009 10 23.12.13.90 = 7009 9
NACE 23.13 : Manufacture of hollow glass
23.13.11.10 = 7010 20 + 90.10 (bottles) 23.13.11.20 = 7010 90 21 23.13.11.30 = 7010 90 31 23.13.11.40 = 7010 90 4 23.13.11.50 = 7010 90 5 23.13.11.60 = 7010 90 6 23.13.11.70 = 7010 90 7 23.13.11.80 = 7010 90 9 23.13.12.20 = 7013 22 10 & 33 1 (lead crystal glasses gathered by hand) 23.13.12.40 = 7013 22 90 & 33 9 (lead crystal glasses gathered mechanically) 23.13.12.60 = 7013 37 10 (toughened drinking glasses) 23.13.12.90 = 7013 28 & 37 (other drinking glasses) 23.13.13.10 = 7013 41 10 & 91 10 (crystal glassware hand-made) 23.13.13.30 = 7013 41 90 & 91 90 (crystal glassware mechanically gathered) 23.13.13.50 = 7013 42 (kitchen glassware other than drinking glasses) 23.13.13.60 = 7013 10 (borosilicate drinking glasses) 23.13.13.90 = 7013 49 & 99 (other glassware gathered mechanically) 23.13.14.00 = 7020 00 07 & 08 (glass vacuum inners)
NACE 23.14 : Manufacture of glass fibres
23.14.11.10 = 7019 11 (chopped strands) 23.14.11.30 = 7019 12 (rovings) 23.14.11.50 = 7019 19 10 (yarns) 23.14.11.70 = 7019 19 90 (staples) 23.14.12.10 = 7019 31 (mats) 23.14.12.30 = 7019 32 (glass wool)
CPIV-INFO 5 N° 249 / JANUARY 2009
23.14.12.50 = 7019 39 (webs, boards, …) 23.14.12.93 = 7019 90 10 & 99 (bulks, flocks, …) 23.14.12.95 = 7019 90 30 (pads, casings for insulating tubes or pipes) 23.14.12.99 = 7019 90 91 (articles of textile fibres)
NACE 23.19 : Manufacture of processing of other glass, including technical glassware
23.19.11.10 = 7001 23.19.11.30 = 7002 10 & 20 23.19.11.50 = 7002 3 23.19.12.00 = 7016 90 (paving blocks) 23.19.21.00 = 7011 (glass envelopes for electric lamps, CRTs) 23.19.22.00 = 7015 (watch and spectacles glasses) 23.19.23.30 = 7017 (laboratory glassware) 23.19.23.50 = 7010 10 (glass ampoules for packing of goods) 23.19.24.00 = 9405 91 (glass parts for lamps and lighting fittings 23.19.25.00 = 8546 10 (glass electric insulators) 23.19.26.40 = 7014 + 7016.10 (signalling glassware + glass cubes) 23.19.26.70 = 7018 (glass beads, pearls, …) 23.19.26.90 = 7020 (other articles of glass)
Full text at : http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2009:018:SOM:EN:HTML
15803/O.J. L18 - 09.01.22
B. TRADE POLICY
WTO Confirms China’s Breach of Trade Law in Car Parts Case
The WTO has circulated the Appellate Body report in the case brought by the EU, US and Canada against China's taxes on imported car parts. The Appellate Body confirms the Panel's conclusions that China breached its WTO obligations (GATT Article III, which do not allow internal fiscal and regulatory measures to discriminate against imported products in favour of domestic products) by creating a system of registration and taxation of imported car parts that promoted the use of domestic components over imported car parts. Under this system, car manufacturers in China have to pay an additional tax of 15%, on top of the 10% customs duty normally levied on imported auto parts, when they do not use a sufficient quantity of parts made in China.
In 2007, EU exports of car parts to China exceeded 3 billion Euros. Total trade in goods between the EU and China was in excess of 300 billion Euros in 2007. 15804/Europe - 08.12.15
High Level Conference on Industrial Competitiveness
On 17 March 2009, in Brussels, is organised a Conference on the Challenges, Opportunities and the Role of Policy in these Difficult Times” by the European Commission. The European economy is greatly affected by the fall-out of the disorderly unwinding of the global financial crisis. Coping with these unexpected shocks comes on top of other well-known challenges, such as accelerating globalisation, the need to decarbonise our economies and to make our energy systems more sustainable, and the demographic challenge.
6 CPIV- INFO N° 249 / JANUARY 2009
This all calls for an ever faster pace of structural adjustment while at the same time avoiding a long- lasting recession and social hardship. But it also provides an opportunity to position the European economy as a front-runner to meet these challenges. Addressing economic challenges is therefore back at the top of the agenda of policy-makers and businessmen alike. Our ability to maintain and improve the competitiveness of our economy will determine our capacity to minimize and overcome the looming slowdown, and to successfully tackle the other major and long-lasting challenges mentioned above. The European Union therefore needs to make intelligent use of its economic policies to reinvigorate sustainable growth and job creation, and to avoid so far as possible a temporary undershooting of investment (and consumption) in Europe. It is now the task of policy makers and the business community in Europe to turn these challenges into opportunities.
The conference will bring together European and international policy makers, businessmen and economists, including Nobel Price Laureate Prof. Paul Krugman, to discuss how to set the framework conditions for success in the next decade. It will take place on Tuesday, 17th of March 2009 in Brussels, Belgium, two days ahead of the meeting of the European Council.
High-level speakers have confirmed their participation, and the mix of European Ministers, Commissioners, Members of the European Parliament as well as business leaders, internationally renowned economists, and journalists will ensure a fascinating and highly relevant dialogue about major competitiveness and management challenges and potential policy needs and responses. About 500 representatives from the fields of politics, business, academia and the media are expected to participate.
Venue: Charlemagne Building (room Gasperi) Time: 8:30am – 18:30pm 170 Rue de la Loi (Wetstraat) 1049 Brussels (Belgium)
The on-line registration for this event is now open on the website of the Directorate-General Enterprise and Industry on : http://ec.europa.eu/enterprise/enterprise_policy/industry/industrial_competitiveness_conference.htm
15805/DG Enterprise & Industry - 09.01.19
C. ENVIRONMENT & ENERGY
Climate Change
1) EU Czech Presidency
Climate protection is one of the priorities of the Czech Presidency’s work programme on the environment. After the French EU Presidency’s successful adoption of the energy / climate package, Prague states it is aware of the need to respect commitments taken by the EU regarding climate protection and to continue to safeguard the position of world leader held by the EU in this field. It will also carefully ensure that the economic visibility of the various measures set out in the energy/climate package adopted in December 2008 is guaranteed. It will be up to the Czech Presidency to begin talks with all parties in preparation for obtaining a global agreement on the fixing of greenhouse gas emission reduction targets after 2012.
CPIV-INFO 7 N° 249 / JANUARY 2009
Two events are scheduled for the first half of 2009 : - The preparatory meeting from 29 March to 8 April in Bonn, where the parties to the United Nations Framework Convention on Climate Change should set out their intentions concerning their respective commitments, - The meeting from 1 to 12 June, also in Bonn, when the draft text is due to be drawn up to allow final negotiation to the overall agreement to be concluded in December 2009 in Copenhagen, under the Swedish Presidency, to succeed the Kyoto Protocol.
In order to facilitate the chances of agreement, Prague foresees bilateral meetings with the main emitting economies – US, Russia, China, Brazil, India – and plans to closely cooperate with the future Swedish Presidency as well as with Denmark, the host country for the Copenhagen Conference (COP 15). 15806/Europe – 09.01.10
2) EU Targets and Funding Mechanisms for Effective Global Agreement
To have a reasonable chance of staying below the 2°C threshold, global GHG emissions must be reduced to less than 50% of 1990 levels by 2050. In addition, global GHG emissions, excluding emissions from land use, land-use change and forestry, will have to peak before 2020. Developed countries must lead in meeting this global goal and demonstrate that a low-carbon economy is possible and affordable. A significant contribution from developing countries, and in particular from economically more advanced developing countries, is also essential, as many of them are quickly becoming important emitters. To this end, cooperation must be significantly boosted to provide the necessary capacity, technology and finance.
See detailed communication at : http://ec.europa.eu/environment/climat/pdf/future_action/communication.pdf
15807/DG Environment – 09.01.28
3) EU Industrial Emissions Legislation (New IPPC Directive)
Adopting on 22 January 2009 a new draft Directive to recast the 7 existing Directives on industrial emissions (*) into a single piece of legislation, the European Parliament’s Environment Committee gave the go-ahead in first reading to a simplification and a strengthening of its measures to further reduce industrial pollution from the 52,000 industrial installations in Europe that will be covered by the new Directive. (*) The recast includes the IPPC Directive, the Large Combustion Plants Directive, the Waste Incineration Directive, the Solvents Emissions Directive and 3 Directives on Titanium Dioxide.
Agreeing with the more stringent emission values suggested by the European Commission for certain categories of combustion installations and pollutants (SO2, NOx, dust and CO), the Environment Committee amended the limit fixing procedure :
- Emissions caps are to be set using the comitology procedure, which reduces the wide use of exceptions that is currently responsible for distorting competition; - Emissions limits are to be set using the best available techniques (BAT) that can be adapted to suit local circumstances (greater flexibility to the authorities issuing permits to industrial installations); - A specialist EU agency will be responsible for adopting the minimum criteria for the granting of permits to industrial installations, with a right of review for the European Parliament; - Installations used for fewer than 500 hours a year should be exempted (for SMEs between 20 MW and 50 MW); - Establishment of a robust inspections regime by the Member States by introducing minimum frequencies for spot checks on the large combustion installations currently covered by the IPPC.
8 CPIV- INFO N° 249 / JANUARY 2009
Next steps : Parliamentary plenary vote in March 2009. 15808/Europe – 09.01.24
Infringement Procedures
IPPC The European Commission has begun infringement procedures against 10 Member States that had allowed 4,000 industrial installations to operate without the permits that ensure they minimised polluting emissions. Denmark and Ireland have been sent first warning letters while eight others (Belgium, Bulgaria, Greece, Italy, the Netherlands, Portugal, Slovenia and Spain) have been sent reasoned opinions (second stage in the procedure). The permits should have been issued by 30 October 2007. Air Quality Standard for dangerous airborne particles (PM10) The Commission sent first warning letters to 10 Member States : Cyprus, Estonia, Germany, Italy, Poland, Portugal, Slovenia, Spain, Sweden and the UK, which have not yet achieved compliance with the PM10 limit values in force since 1 January 2005. 15809/Europe – 09.01.31
IRENA : International Renewable Energy Agency
Under the impetus of Germany, Denmark and Spain, the International Renewable Energy Agency (IRENA) was finally born in Bonn on 26 January 2009, with the signing of its founding treaty by over 75 countries, including most of the EU Member States. Not dependent on the UN, IRENA does not yet include Brazil, China, the United States and Japan, which could join in the near future. With an annual budget of $25 M, IRENA aims to help developed and developing economies on the road to rapid transition towards generalised use of renewable energies (solar, wind, biomass, biofuels and geothermal) by providing advice in order to take forward regulatory frameworks, financing and best practice. It will also establish bridges between north and south by promoting transfers of technology, technical assistance and fund raising. Location of its head office will come in June with the candidacies of Bonn, Austria, Denmark, Kenya and the United Arab Emirates.
www.irena.org 15810/Europe – 09.01.28
Energy Efficiency in Buildings
In the context of the Green Energy Week from 9 to 13 February, CONCERTO, an initiative launched by the European Commission and which includes 45 communities of 18 Member States taking part in 18 sustainable energy projects, is organising a conference to be held in Brussels on 9 February on energy efficiency in buildings. In response to the public consultation on recasting the 2002/91/EC Directive on energy efficiency in buildings, CONCERTO has issued recommendations based on experience and best practice in the communities involved in the initiative. The document is available at : http://concertoplus.eu/CMS/Events_doc/EPBD_position_paper.pdf
15811/Europe – 09.01.28
CPIV-INFO 9 N° 249 / JANUARY 2009
D. SOCIAL ISSUES
Unemployment Rate
Euro-zone seasonally-adjusted unemployment was 8.0% in December 2008, compared with 7.9% in November. EU27 ratio was 7.4% in December, compared with 7.3% in November.
Netherlands 2.7% Romania 5.8% France 7.9% Austria 3.9% U K 6.1% Portugal 7.9% Cyprus 4.2% Poland 6.5% Lithuania 8.0% Slovenia 4.3% Finland 6.5% Ireland 8.2% Denmark 4.5% Italy 6.7% Hungary 8.5% Czech Republic 4.7% Sweden 6.9% Estonia 9.2% Luxembourg 4.8% Belgium 7.1% Slovakia 9.4% Bulgaria 5.4% Germany 7.2% Latvia 10.4% Malta 5.7% Greece 7.5% Spain 14.4%
Elsewhere USA 7.2% Russia 7.7% China 4.0% (9/08) Canada 6.6% Switzerland 2.8% Australia 4.5% Japan 4.4% Brazil 6.8% India 7.32 % (4/08) Turkey 10.9% 15812/Eurostat – 09.01.30
E. GENERAL ISSUES
EU Company Law
On 18 December 2008, the European Parliament adopted a report on the draft Directive to simplify Directive 78/660/EC and Directive 83/349/EC on annual and consolidated accounts. The report backs the Commission’s efforts to cut red tape for SMEs by : a) Scrapping the advertising obligations on establishment costs, b) Exempting from the rule to breakdown turnover in annual accounts according to geographical area and nature of business, c) Scrapping the obligation for a parent company to prepare consolidated accounts if it only has subsidiaries of negligible value.
The new legislation is part of a broader plan to simplify EU company law. 15813/Europe – 08.12.20
EURO turns Ten as Slovakia Joins Club
As the euro celebrates its tenth anniversary, Slovakia has become the sixteenth country to adopt the EU's single currency after joining the zone on 1 January 2009. The number of EU citizens sharing the euro now stands at 323 million. Eurozone finance ministers gave Slovakia the green light to adopt the euro on 8 July 2008, setting the conversion rate for the Slovak koruna to the euro at 30.126 SKK.
10 CPIV- INFO N° 249 / JANUARY 2009
In addition to traditional euro cash, Slovak pockets are also heavy with new €2 commemorative coins issued to celebrate ten years of the euro. 84 million such coins have been circulating throughout the euro zone since New Year's Day. Citizens chose the winning design by electronic vote. 15814/Europe – 09.01.05
Inflation Rate
Latest Eurostat figures show that the annual inflation rate were down in December 2008 for both the 15-nation euro zone and the whole EU 27. Euro-zone annual inflation was 1.6 %, down from 2.1% in november 2008, whereas EU27 annual inflation was 2.2 %, down from 2.8% in November.
Euro-Zone Members Outside Euro-Zone Members
Luxembourg 0.7 % Sweden 2.1 % Portugal 0.8 % Denmark 2.4 % Germany 1.1 % Czechia 3.3 % France 1.2 % Poland 3.3 % Spain 1.5 % Hungary 3.4 % Austria 1.5 % U K 4.1 % Netherlands 1.7 % Romania 6.4 % Cyprus 1.8 % Bulgaria 7.2 % Slovenia 1.8 % Estonia 7.5 % Ireland 2.1 % Lithuania 8.5 % Greece 2.2 % Latvia 10.4 % Italy 2.4 % Belgium 2.7 % Finland 3.4 % Slovakia 3.5 % Malta 5.0 %
Elsewhere
USA 0.1% Russia 13.3 % China 1.2% Canada 1.2% Switzerland 0.7 % Australia 3.7% Japan 0.4% Brazil 5.9% India 7.8% (04/08) Turkey 10.1 %
15815/Eurostat – 09.01.15
*
* *
CPIV-INFO 11 N° 249 / JANUARY 2009
I I . G L A S S N E W S
A. FLAT GLASS
Glass Companies
Saint-Gobain Sekurit to Lay Off in Spain
Saint-Gobain Sekurit in Spain has officially filed to temporarily lay off 300 workers at its plant in L'Arboç del Penedès, Barcelona. Faced with a fall in demand of 1.8 million items, Sekurit is considering lay offs on 55 days between February and June 2009 on the automotive glass lines. In return, the company will not propose to lay off 170 employees in another area.
15816/Press Release – 09.01.29
Nippon Sheet Glass
1. Nippon Sheet Glass Co, said on 16 December 2008 that its UK unit, Pilkington, would appeal a EUR 370 million (USD 507 million) cartel penalty imposed by the European Commission. Nippon Sheet Glass, which makes flat glass for cars and buildings, said in a statement it would keep unchanged its earnings guidance for the current fiscal year, which allows for the penalty, as it expected any court decision on the appeal to come after that ends in March 2009. On 12 November 2008, The European Commission imposed its highest ever cartel penalty, fining four companies more than EUR 1.3 billion for price fixing in the European car glass market between 1998 and 2003. Among the alleged cartel members, French building materials group Saint-Gobain was fined EUR 896 million, the highest such EU penalty on an individual company. 15817/Press Release – 08.12.22
2. The board of NSG Group on 29 January 2009 approved a series of measures designed to address the economic downturn and improve profitability. The initiatives build on action already taken by management in response to the sudden and rapid changes in the global economic environment. The overall objective is to protect the business in the short term and also to re-establish profit growth from FY 2011 onwards. Since November, the speed and depth of the slowdown in international trade have been unprecedented. All three of the group's business lines have been adversely affected, with the impact on Automotive particularly marked. Both at group and business line level, quick and decisive measures have already been implemented including adjusting production, lowering operational expenses and reducing the workforce. It is clear to the board, however, that more radical measures are now required. Consequently, NSG is taking further action to realign its global manufacturing sites, to reduce capacity and to reduce headcount further. The total investment in the approved restructuring will be JPY 22 billion. The group is taking action to reduce capacity and output to match the requirements of its customers. In Automotive, production capacity will be reduced in Europe and North America, and a number of other initiatives designed to align the group's production capacity to demand will also be implemented in South America, Japan and Asia. The group will also reduce its float glass capacity. This will involve taking out capacity equivalent to two float lines in Europe and a 15% reduction of float capacity elsewhere in the group.
12 CPIV- INFO N° 249 / JANUARY 2009
As a result of the above measures, NSG will have reduced its overall workforce by approximately 5,800 by March 2010. This represents around 15% of the global total. Around 3,000 of these employees will have left the group by the end of the current financial year.
15818/Press Release – 09.02.02
Vitro Launches Self-Cleaning Glass in Europe
Vitro, S.A.B. de C.V. announced the launch of its new product line ECOPURE®, a self cleaning glass, through its European affiliate Vitro Cristalglass. ECOPURE® is a resistant and colourless hydrophobic glass which substantially improves visibility during and after rain. Its exclusive coating uses the UV rays in sunlight to decompose organic contaminants on its surface and increases the sheeting action of water over the glass thus allowing for the elimination of dirt by rain or manual rinsing. 15819/Press Release – 09.01.30
Asahi Glass
Binswanger has been named exclusive agent by AGC Flat Glass North America, Inc. for the sale of a one-story, 603,494 square foot (56,066 m²) facility on 66 acres (26.71 hectares) in Saint- Augustin-de-Desmaures, Quebec, Canada. The largest building to become available in the Quebec market in many years, the facility features reinforced concrete floors, insulated steel walls, ceiling heights to 43 feet (13.1 meters) clear, all utilities, 11,267 square feet (1,046 square meters) of air-conditioned office space, six bridge cranes, two truck docks and six ground-level doors. The property is located nine miles to Quebec City and close to Routes 138 and 367. Binswanger is aggressively marketing the building to a wide variety of manufacturers and distributors on an international level. 15820/Press Release – 09.01.20
Trakya Cam Bulgaria
Turkish glass manufacturer Trakya Cam said it would wait to see market conditions in 2009 before implementing the second stage of its planned investment in Bulgaria in 2009. Trakya Cam, a unit of leading Turkish glass producer Sisecam, announced in March 2008 that it planned to invest USD 415 million in Bulgaria by 2010. In a statement to the Istanbul Stock Exchange on 18 December 2008, Trakya Cam said the first phase of its investments was continuing. "A decision on the second phase of the investment...will be made in 2009 depending on market conditions", the company said.
15821/Press Release – 08.12.24
Cristaleria Queen (Spain)
Southern Spanish glass manufacturer Cristaleria Queen, S.L. is investing EUR 11.4 million in the construction of new facilities covering 12,000 m², of which 9,000 m² correspond to the factory and the rest to offices, workshops and storage. The company is moving its activities to the town of Seville Montellano, closing the 3000 m² plant at its current headquarters in Villamartin (Cádiz). The company will add technology that allows direct transfer of glass to the cutting table without worker intervention. It will benefit from a grant of EUR 1.5 million by the Andalusia regional government, in addition to benefits such as loans and interest subsidies to support the presence of innovative firms in the locality. Cristaleria Queen is also committed to taking on 25 new employees on permanent contracts. The enlargement of the plant and the workforce will enable the company to double production in the medium term. The new facility will be launched during the 1ST quarter of 2009, although it will not be fully operational until mid-way through the year.
CPIV-INFO 13 N° 249 / JANUARY 2009
The company, owned by the Reina Perea brothers, makes most of its revenue from the manufacture of double glazing. In 2007 the company earned EUR 9 million, compared to EUR 5.49 million in the previous financial year. 15822/Press Release – 09.01.22
Asahimas Invests in Coating Line (Indonesia)
Indonesia's PT Asahimas Flat Glass Tbk plans to invest USD 24.50 million to produce flat glass using Chemical Vapour Deposition (CVD) technology on the A-2 furnace at the flat glass plant in Sidoarjo, East Java. The technology license is held by the Belgian subsidiary of Asahi Glass, AGC Flat Glass Europe S.A. Asahimas will allocate some USD 24.50 million to adopt CVD technology. The investment includes USD 14.20 million for machine purchasing, USD 2 million for machinery supplier costs, US 2.7 million for installation costs, and USD 2.5 million for unaffiliated contractors. The company has also budgeted USD 2.2 million for spare parts, design, training, and royalties to AGC Flat Glass Europe S.A., and other costs of USD 900,000. The company will start flat glass production with CVD technology by March 2009 on attaining approval from the extraordinary general meeting of shareholders (EGMS) on 18 February 2009. Asahimas is the main producer of glass sheet in Indonesia with over 40% market share. The company has three plants: Sidoarjo, with two furnaces, produces 150,000 tonnes of flat glass a year; Ancol plant produces a total of 270,000 tonnes of glass a year; and Cikampek outputs 1.2 million m² of automotive glass. 15823/Press Release – 09.01.28
McNeill-McManus Glass Seeks Buyer
Administrators at a glass company in south Antrim, Northern Ireland hope the troubled firm can be sold as a going concern. Mallusk-based McNeill-McManus Glass is blaming the downturn in the construction industry for its difficulties, which have put 75 jobs at risk. BDO Stoy Hayward was appointed as administrator earlier in the week ending 18 January 2009. Established in 1905, the company specialises in the manufacture and installation of curved glass and specialist laminated products. In recent years the company has invested heavily to benefit from the buoyant construction market, upgrading its glass-toughening plant and installing a fully automated line for the manufacture of double-glazing units at its Mallusk factory. However, the decrease in the level of orders combined with severe cash-flow pressures left the directors no option but to place the company into administration. 15824/Press Release – 09.01.21
Auto Glass
Pittsburgh Glass Works Closes Plants
1. Anticipating lower auto production in 2009, automotive glass manufacturer Pittsburgh Glass Works will close its Oshawa, Ontario glass plant in the 1st quarter of 2009. The company, which was spun off from PPG Industries Inc. in 2008, also will cut more than 150 jobs and close satellite assembly plants in Newark, Delaware, and Cambridge, Ontario, later in 2009. 15825/Press Release – 09.01.09
2. Pittsburgh Glass Works has also announced the closure of its Evart, Michigan facility, a move blamed on the continuing decline in demand for auto glass brought about by the slump in the US auto industry. The company is responding to excess capacity resulting from the decline that is not expected to improve in the foreseeable future. Parts currently produced at the Evart facility will be transferred to other PGW factories in North America by the end of March 2009. Evart plant operations will cease at that time. 15826/Press Release – 09.01.28
14 CPIV- INFO N° 249 / JANUARY 2009
B. CONTAINER GLASS
Glass Companies
O-I
1. O-I Manufacturing Finland has transferred production of brown 0.33-litre and 0.5-litre glass bottles from its plant in Karhula, Finland, to Järvakandi, Estonia. O-I Manufacturing Finland will continue making clear glass bottles for Fosters, amongst others. According to Finnish brewery Sinebrychoff, where the bottles are made is not important as such, as quality requirements remain unaltered. Also, there is little need for new 0.33-litre bottles. The market share of glass bottles is now only 20%-30%, but Sinebrychoff has no plans to give up bottles entirely. In early 2009, Sinebrychoff will introduce a new Korpisavu Karhu beer that is bottled in a 0.33-litre glass bottle. 15827/Press Release – 08.12.23
2. Owens-Illinois Inc. has begun manufacturing glass baby bottles that it hopes to market directly to large retailers such as Wal-Mart Stores Inc. and Target Inc. in the hope of capitalizing on recent environmental concerns about plastic. O-I has signed up with a breast-pump maker to begin distributing its new baby bottles directly to new mothers as a healthy, sterile, and safe alternative to plastic and disposables. The move is a departure for the firm, which has not sold directly to retailers for decades, concentrating its business on manufacturing packaging. But company officials are hopeful that glass baby bottles will reintroduce glass as an environmentally friendly alternative that can salve new parents' concerns about potentially dangerous chemicals leaching from plastic. 15828/Press Release – 09.01.28
3. Owens-Illinois Inc. launched a major effort to refocus the rest of the world on its main product: glass. The glass packaging leader has built what it calls an "ideation centre" in its world head- quarters to show clients the benefits of glass, help them design new glass containers for their products, and assist in their consumer marketing efforts. The centre, an interactive conference area that brings engineers, designers, and marketers together with O-I's customers to develop new packaging, was introduced to employees, clients, and others on 22 January 2009. The approximately 278 m² centre has three main sections: a product area to display the company's worldwide products and processes, a "tasting room" to allow clients to continue their meeting in a more relaxed atmosphere, and an interactive conference centre with "smart screens" that will allow image manipulations by engineers and designers to collaborate with customers on new designs. In the past year alone, the impact of that rededication to research has resulted in almost 1,000 new products in active development. O-I has almost tripled its product research and development team and doubled its North American marketing group in the past two years.
15829/Press Release – 09.01.29
Srpska Fabrika Stakla (Serbia)
Serbian glass plant Srpska Fabrika Stakla, owned by Bulgarian glass maker Rubin, suspended production on 8 January 2009 until further notice due to the stoppage of Russian gas supplies. The plant at Paracin will only ship products already in stock. Russian gas deliveries to Serbia were completely halted on 6 January 2009 in a dispute between Russia and the Ukraine.
CPIV-INFO 15 N° 249 / JANUARY 2009
Serbia and Germany have agreed on supplies of 3.0 million m³ of natural gas daily to the Balkan country in addition to the 2.0 million m³ delivered to Serbia on 9 January 2009 by Hungary's MOL. Hungary delivered the same amount of gas to Serbia on 8 January 2009. Hungary has said it will decide on a day-to-day basis how much gas it can supply Serbia.
15830/Press Release – 09.01.13
Vitro (Central America)
Vitro S.A.B. de C.V. announced 18 December 2008 that Grupo Modelo (Modelo), one of the Glass Container business unit's key customers, has notified the company that it has reduced its beer bottle requirements due to the current world market contraction. Both firms are in talks to find common solutions that minimize the impact of this fall in volume. Several alternatives are being considered including giving Vitro priority on Modelo's new product developments as well as bringing forward 2009 shipments to ensure the continuity of Vitro's production programmes. Vitro and Modelo have worked together for over 40 years in a mutually beneficial business relationship that has allowed both companies to achieve a significant growth in sales and profits. The volume reduction will impact Vitro's annual consolidated sales figures for 2009 by approximately 6.9% of 2008 estimated sales. In anticipation of this volume reduction, the Glass Container business unit will optimize its production capacity in order to maximize utilization and efficiencies of its manufacturing facilities to support its existing business base as well as taking advantage of new opportunities. 15831/Press Release – 08.12.23
Recycling
British Glass Attacks 'Down-cycling' of Glass Waste
British Glass has highlighted the continuing loss of recycled glass from UK container manufacturing to aggregate manufacture, which entails a lost opportunity to reduce carbon emissions. If all the recycled container glass collected and processed was used to make new bottles and jars, the UK could save over 380,000 tonnes of CO2 every year. Unfortunately, only 50% of the glass collected comes back to glass containers even though packaging is 100% recyclable and can be endlessly recycled (closed-loop recycling) without any loss of quality or purity. "And further to the savings in CO2, if just over two thirds of the 8 billion bottles and jars produced yearly in the UK were recycled and returned to the container manufacturers, it would save over 1.8 million tonnes of raw materials and approximately 500,000 Mega Watt hours of energy", explained Rebecca Cocking, recycling manager of British Glass. "This means the energy saved could power over 18,000 two-person households for a year!".
The UK glass industry has the ability to use over 1.55 million tonnes of recycled glass a year. This means that the UK glass container industry could meet over 90% of the EU Packaging and Packaging Waste Directive target of 60% of the waste stream for glass by 30 December 2008. "However," continued Ms. Cocking, "despite this the industry continues to lose recycled glass (cullet) to other end-use applications; more often than not in the form of an aggregate substitute which, unlike closed-loop container glass recycling, has no CO2 benefit. This practice is 'down- cycling' and a waste of embedded carbon. It is telling that no EU countries other than UK and Ireland will allow glass into road fill".
"Estimations for 2008 show that the amount of recycled glass being returned to closed loop container manufactures in the UK is to decline for the third year running despite the overall recycling rate for glass increasing. If action is not undertaken by parties within the supply chain the overall environmental benefits highlighted will be lost. Recycling glass and returning it to manufacturers for re-melt has never been so important". 15832/Press Release – 09.01.13
16 CPIV- INFO N° 249 / JANUARY 2009
Ecovidrio: Christmas Recycling Figures for 2008
Spaniards recycled more than eight glass bottles per person during the holiday season according to Ecovidrio, which manages container glass recycling nationwide, recalling that in Christmas 2007 over 123 million kilograms of waste glass was deposited in containers throughout the country. According to the latest figures from Ecovidrio, the increase registered in 2007 (exceeding 14% nationally) was not cyclical but part of a sustained trend thanks to the continuous improvement of glass recycling management and higher public awareness. In 2007, Spaniards returned 657.3 million kilograms of glass waste for recycling. In addition, 279,006 tonnes of glass waste were recovered from other sources including packaging plants, for a grand total of 936,336 tonnes recycled in this period. 15833/Press Release – 09.01.09
Miscellaneous
Vidreira do Atlántico
Spanish glassworks Vidreira do Atlántico and unions in the Ourense offices of the Galician regional labour department aimed to bring the parties closer together and prevent the radicalization of a conflict stemming from negotiation of the contract which began in July 2008 at the company, part of Portuguese group Barbosa e Almeida, and which employs about 150. After two meetings involving both sides and others held individually, employers and unions ended the encounter by reiterating their initial positions, whilst assuring their willingness to continue talking. Nevertheless, workers ratified a strike calendar to begin on the 11 January 2009. For its part, company president Jorge Alexandre Ferreira repeated his warning before the strike that without harmony and without a new organizational structure that makes the plant more profitable, the company was doomed to closure, "sooner rather than later", given the difficulty of the firm's financial situation characterised by a lack of liquidity and the unwillingness of the bank to issue guarantees. Mr. Ferreira called on workers to reflect on their future. Lack of liquidity is the argument put forward by the company for having paid only half the December salary by 8 January 2009; unions maintained it was a measure to pressure workers into not striking.
15834/Press Release – 09.01.13
Beatson Clark: Brewer Adopts Lightweight Bottle
Wolf Brewery (WBC) in Norfolk, eastern England, has adopted the new lightweight bottle from glass packaging manufacturer Beatson Clark. Beatson Clark had supplied WBC with standard 500ml ale bottles since May 2008, before the company decided to move to the 320g lightweight amber versions. The brewer said that the new lightweight bottles would help the company make its environmental contribution "while maintaining the traditional real-ale look of our bottles". The bottles are lighter and use fewer raw materials, which makes them cheaper to make and transport.
Beatson Clark also won a contract to provide bottles for Abidec children's vitamin drops. The firm is manufacturing the 30ml bottles, which have a roll-on pilfer-proof neck, under a contract for pharmaceutical firm William Ransom, which is making the product for Chefaro UK and Chefaro Ireland. Beatson Clark has a turnover of GBP 40 million and a production capacity of around 455 million units or 76,800 tonnes. 15835/Press Release – 09.01.15
CPIV-INFO 17 N° 249 / JANUARY 2009
FEVE Launches “Friends of Glass” Website
FEVE, the European Container Glass Federation, launched its new web-based platform designed to drive change in consumer attitudes to choosing, using and buying glass. The www.friendsofglass.com platform went live at 15:00 on 12 December 2008, with the aim of starting an inspiring dialogue among the general public, sharing ideas about glass packaging and encouraging consumers to choose glass packaging. The Federation's consumer campaign: "Glass. The clear choice" is signed off by the Friends of Glass, an initiative powered by the FEVE Federation. It is the Federation's main tool to start the Friends of Glass approach as a movement, from which, in the coming months, "real life" actions will be launched to give very powerful and concrete reasons to buy products packaged in glass.
Initial research across 6,000 European consumers shows that consumers believe glass to be the easiest packaging material to recycle and also to be the material which has the lowest risk of interaction with the product or contents. These are the type of key messages that the campaign will focus on, to reinforce and strengthen the positive connection that consumers have with glass packaging.
This site launch is a soft launch and the promotion campaign around the site and Friends of Glass will be intensified over the next weeks and months. Further actions are being developed including "Choose Glass Week" and/or other sales activation initiatives under the leadership of the FEVE Promotional Working Group. Thanks to voluntary and special contributions from FEVE members, a valuable new tool now exists to reach out to consumers to choose glass. FEVE briefed national glass packaging trade associations in October 2008 about the details of the campaign, and more contacts and details will be communicated to develop ways to integrate national associations in being voices and multipliers of the messages initiated in this campaign at country level.
The FEVE website has also been updated with the new site dynamics and look, closely in line with the campaign.
Friends of Glass are invited to join the movement by promoting the platform to customers, by using the communications tools, Friends of Glass logos on products and encouraging other people to sign up on the platform, www.friendsofglass.com. 15836/Press Release – 08.12.22
Publication
Wadi Glass Containers (Egypt)
Wadi Glass Containers is an Egyptian company that has been in existence for two years, having been formed to supply one of its sister companies. As less than 0.5% of production is used to supply the local market, the biggest percentage of production is now exported to Europe and the Middle East. The plant located near Alexandria harbour has four lines (one single-gob and three double-gob) to produce speciality and standard glass bottles and jars. 15837/Glass Worldwide – Issue 21 2009
18 CPIV- INFO N° 249 / JANUARY 2009
C. FIBRES
Glass Companies
LM Glasfiber cuts 20% of Staff in Denmark
Danish wind-turbine blade manufacturer LM Glasfiber has cut 450 of 2,220 domestic jobs, or some 20% of staff, to adapt to lower activity levels in the financial crisis. The company has seen delays in the set-up of turbines due to funding conditions becoming more difficult, which has reduced demand and order intake for blades. Some 70% of the dismissed staff were involved directly in the blade output, while the rest were employed at the administration. The current situation is hopefully temporary as the long-term prospects for the wind turbine industry are still very positive. It is however difficult to forecast how long the low activity in the sector would last but the firm is optimistic about 2010 and 2011.
15838/Press Release – 09.01.13
Saint-Gobain Vetrotex: Lay-Offs at Italian Facility
Saint-Gobain Vetrotex of Vado Ligure in northern Italy is to lay off 21 out of 37 employees in the glass cloth department. The company has taken the measure in response to a sharp fall in demand in 2008 which is set to continue in 2009 following the slump in the construction sector.
15839/Press Release – 09.01.21
D. SPECIAL GLASS
Glass Companies
Corning
Corning Inc posted worse-than-expected quarterly results and gave a weak forecast due to a significant fall in sales of glass for televisions and computer monitors, and said it would eliminate 4,900 jobs to cut costs. Corning 4th quarter 2008 net income fell to USD 249 million, or USD 0.16 a share, from USD 768 million, or USD 0.49 a share, a year earlier. Excluding special items, profit was USD 0.13 a share, down 70% from a year ago. One-time items included restructuring charges and a gain from an asbestos settlement. As the economy has declined, demand from manufacturers for liquid crystal displays in flat-panel televisions and computers has fallen. The slowdown has been particularly harsh among companies that assemble TVs and among Corning's customers in Taiwan. As a result, revenue for Corning fell 30% to USD 1.1 billion in the 4th quarter 2008. Corning said it would cut 3,500 jobs, or about 13% of its workforce, by the end of 2009, and left the door open for more reductions if necessary. It said it is also cutting more than 1,400 temporary workers. The job cuts would be in North America, Latin America and "heavily in Asia".
15840/Press Release – 09.02.02
CPIV-INFO 19 N° 249 / JANUARY 2009
Schott AG
German glass products maker Schott AG reported on 16 December 2008 a net profit of EUR 182 million (USD 248.5 million) for fiscal 2007/08 ended 30 September 2008 versus a loss of EUR 51 million a year before. The company said it managed to meet its profit forecast despite the global economic crisis. It attributed the result to its successful efforts to retain and improve its position in many of its business fields via innovative products and close customer relationships.
Earnings before interest and tax (EBIT) rose by EUR 22 million to EUR 289 million. Group sales increased 4% on the year to EUR 2.23 billion due to the dynamic development in the area of solar power, as well as the growth achieved in various divisions of the company, Schott said. Excluding exchange rate effects, sales would have been EUR 50 million higher.
Demand for automotive components from the Electronic Packaging and Fibre Optics divisions decreased, while the sales of pharmaceutical tubing and pharmaceutical packaging were in line with expectations.
Schott expects demand from the automotive and household appliance industries to ease in fiscal 2008/09. Demand for tubing and packaging products for the pharmaceutical industry is expected to remain stable. Schott also forecast that the growth of its solar power business will slow down under the impact of the financial crisis. 15841/Press Release – 08.12.23
Nippon Sheet Glass / Asahi Glass Increase Capacity for Solar Cell Glass
Nippon Sheet Glass and Asahi Glass each plan to increase output capacity of glass panels for thin- film solar cells in response to continuing strong demand for these panels, which have escaped the slowdown affecting construction and automobile glass. Nippon Sheet Glass will invest a total of EUR 50 million, or about JPY 6.4 billion, to modify existing construction glass processing factories in the UK and the US and produce glass panels for thin-film solar cells. The investment will double the firm's annual production capacity for such panels, with each facility becoming capable of producing 60,000 tons a year. The UK production is to begin as early as February 2009, while production in the US facility will likely start in 2010 or later. Asahi Glass has invested an estimated JPY 2 billion to set up a processing facility for thin-film solar cell glass panels at an existing factory in Belgium. The firm's fourth such facility, after those in Thailand and Japan, is currently conducting test runs, with the aim of moving into full-scale production by the end of 2009. Thin-film solar cells are cheaper to manufacture than the conventional variety because they use less silicon. Expectations are growing that thin-film cells will become one of the mainstream solar cells in the future thanks to the lower production cost. 15842/Press Release – 09.01.14
Saint-Gobain Solar Panel Glass Postponed
Saint-Gobain management announced to trade unions on 22 January 2009 the postponement for six months of the EUR 41 million investment at its Vioño Pielagos factory in Cantabria (northern Spain), for the construction of a new furnace to produce solar panel glass. The multinational had planned to start the investment and jobs in January 2009. Now, however, it has decided to wait and see how the market develops. The project was presented in August 2008 by the industrial group. It was expected to develop the project in two phases. The first, with an investment of EUR 31 million, was to repair the glass melting furnace. Once in operation, a further EUR 10 million investment would equip the plant to process the glass to go into solar panels. The Vioño plant currently has about 55 employees.
15843/Press Release – 09.01.28
20 CPIV- INFO N° 249 / JANUARY 2009
Essilor International
Essilor’s American subsidiary wants to buy 100% shares of Signet Armorlite, one of the first ten world manufacturers of ophthalmic glasses, located in California. Signet Armorlite, owner of the Kodak brand, realised a turnover of $ 130 M in 2007 and employs 900 people in a Mexican plant, 4 prescription laboratories in the US, and in Europe and 3 distribution centres located in Canada, Portugal and the Netherlands. The final agreement should be finalised by the end of the first half of this year. Essilor had already bought last June the first world manufacturer of machine equipment for optical prescription laboratories. 15844/Les Echos – 09.01.15
E. TABLEWARE AND CRYSTAL GLASS
Glass Companies
Waterford Crystal
1. Directors at Waterford Crystal were paid 31% more by the company in its last full financial year before it went into receivership along with the other companies in the Waterford Wedgwood luxury goods group on 5 January 2009. Accounts for Waterford Crystal Ltd. showed that its pension deficit rose to EUR 68.6 million at the end of April 2008 compared to EUR 55.8 million a year earlier. Waterford Crystal paid EUR 4 million in redundancy to 96 workers who left the group in 2008. Remaining workers are facing substantial reductions in their pension entitlements and union representatives met the Tánaiste (deputy prime minister) on 12 January 2009 to discuss the issue. They are seeking the establishment of a fund to protect pension benefits. Waterford Crystal's accounts give a picture of the 13.6% slump in crystal sales which, along with poor demand for its china and tableware products, pushed the group into insolvency. Crystal sales in 2008 were EUR 116 million. While sales at Ireland were flat at just more than EUR 30 million, its revenues from the United Stated declined by 19% to EUR 67.8 million. Sales to "other" countries declined to EUR 18.3 million in 2008 from EUR 20.2 million in fiscal 2007.
Waterford Crystal accumulated total losses of EUR 41.1 million that year. The company still employs 800 workers.
Union officials representing workers at Waterford Crystal remain "cautiously optimistic" about the future of the company following meetings with potential new owners. Representatives from UNITE, which acts for the majority of the 800 staff at the Waterford plant, met with over 500 current and retired workers on 17 January 2009 to bring them up to date on talks held with KPS Capital Partners during the week. Workers have mandated their union representatives to continue talks with the New York-based Investment Company as well as receiver David Carson of Deloitte & Touche.
Between 250 and 350 jobs could be saved at Waterford Crystal but there are no guarantees that production will continue in Kilbarry for longer than a year. New-York based KPS Capital Partners has told the Irish government and trade unions that it is willing to invest EUR 100 million in risk capital in Waterford Crystal, Wedgwood and Royal Doulton. However, it is only taking a year option on the three factories and would be reconsidering its options depending on what structures it wanted put in place and in the case of Waterford Crystal the level of support from the government.
CPIV-INFO 21 N° 249 / JANUARY 2009
The entire Waterford Crystal workforce was placed on a three-day week effective from 19 January 2009. While no time limit has been put on the three-day week, workers are acutely aware that they will only have jobs for as long as the receiver has money to keep the plant open or a new buyer comes on board. Against that background, production and clerical workers met their union leaders at separate meetings in the city on 17 January 2009 and were told that KPS Capital Partners is only interested in assets and not liabilities such as the workers' pension schemes. As far as KPS is concerned, the "old" Waterford Crystal no longer exists but it is interested in setting up a new company to manufacture stem wear crystal in the city. To do that it envisages that all existing workers will be let go and receive statutory redundancy. Then between 250 and 350 will be re-employed in the new company, which will continue to be known as Waterford Crystal.
In addition to the investment by KPS Capital Partners, it is understood that there would also be government involvement which would include IDA and other supports and the Department of Arts, Sport and Tourism would also have a role to play. That may involve investment in the Visitor Centre at Kilbarry where annual tourism numbers are 320,000.
As angry workers gathered in the Tower Hotel on 17 January 2009 union leaders promised to fight for an inclusive agreement to satisfy those who would get jobs and those who would have to rely on the pension schemes they paid into for 40 years and more.
2. Waterford Wedgwood's operations in the United States, including Waterford Crystal, Wedgwood and Royal Doulton are not encumbered by the receivership and administration processes in Ireland and the UK which were announced on Monday, 5 January 2009. Administration and Receivership of the UK and Irish companies enables the global business to be preserved while it is restructured and offered for sale, and the appointees are planning to continue doing business while seeking a sale to interested parties well advanced in this process. 15845/Press Releases – January 2009
Bohemia Crystalex Trading and Subsidiaries
The Municipal Court in Prague declared glass company Bohemia Crystalex Trading (BCT) insolvent on 16 January 2009. The glass maker and its subsidiaries have been in insolvency proceedings since 22 September 2008 due to a lack of working capital. The declaration of insolvency comes as no surprise and the owners have been expecting it once the three-month moratorium was over.
Until the end of 2008, BCT, Crystalex Novy Bor and Sklarny Kavalier were protected against creditors by a moratorium which made it possible for the companies to continue manufacturing. Now, however, Kavalier is the only one still producing, although it is also insolvent.
Crystalex Novy Bor had to shut down production in the week ending 11 January 2009. Creditor banks withdrew all cash at the end of 2008 and Crystalex has no money to finance production or pay wages. It announced a lay-off of 1,631 staff to the employment offices and is now awaiting a declaration of insolvency. Crystalex Novy Bor and Sklarny Kavalier glass works will submit, as soon as possible, a realistic proposal regarding at least a partial resumption of production at Crystalex and maintenance of production at Kavalier. In addition, they will also put forward proposals regarding the steps to be taken when seeking investors.
The other two glass makers, Sklo Bohemia Svetla nad Sazavou and Sklarny Bohemia Podebrady, had already shut down production in September 2008. Both companies are bankrupt and are searching for new owners. Their employees have been made redundant.
15846/ 09.01.09, 20 & 21
22 CPIV- INFO N° 249 / JANUARY 2009
Tipperary Crystal Extends Product Line
The problems of Waterford Wedgwood have not dampened 21st birthday celebrations at Irish competitor Tipperary Crystal. The company has extended its line with the renowned designer Louise Kennedy as part of its "innovation through design" strategy, which has seen collaborations with Irish talent such as the chef Rachel Allen, Patrick Guilbaud, the restaurateur, and the designer Sybil Connolly. Ms. Kennedy launched the range of nine new items at Showcase Ireland, the crafts and giftware fair, held from 19 - 21 January 2009. 15847/Press Release – 09.01.26
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III. I N B R I E F
GLASS
Viridor : Glass Recycling Facility
Waste management firm Viridor has won planning consent for a glass recycling facility in Midlothian, central Scotland. The company, which already operates a site at Dalhousie Business Park, Bonnyrigg, will add a mobile glass crusher and screening plant after councillors gave the go- ahead. Viridor works in partnership with local councils, waste management companies and third party organisations, taking used bottles and other waste glass from consumer and industry sources for recycling. 15848/Press Release – 09.01.20
Raw Materials
Sibelco in Japan
Belgian firm SCR-Sibelco NV, the global leader for silica used in flat-panel glass substrates, intends to build a plant in Japan's Aichi Prefecture with an output capacity equivalent to 70% of domestic demand, The Nikkei reported on 20 December 2008. Singaporean subsidiary Sibelco Asia Pte. is working with Japanese logistics firm Yura Kaiun Co. to establish a new company in Japan. This 70-30 joint venture has been capitalized at JPY 400 million. The new firm will invest JPY 2 billion to build a plant near the port of Nagoya. Output capacity will be between 10,000 tons and 12,500 tons a month. Sales are targeted to reach JPY 4.5 billion in 2012. Sibelco now supplies Japanese glassmakers with silica produced at its Taiwanese factory, but shipments from the new plant are to begin in 2010. Currently, Asahi Glass Co. and Nippon Electric Glass Co. appear to be scaling back glass substrate output because of poor demand for flat-panel televisions during the economic downturn. But Sibelco decided to invest in Japan as it sees Japanese production rising over the long term.
Sibelco supplies companies around the world, registering annual sales of JPY 200 billion.
15849/Press Release – 08.12.24
CPIV-INFO 23 N° 249 / JANUARY 2009
Solvay Splits Amicably from ANSAC
Solvay Chemicals, Inc., announced 21 January 2009 that it has exercised its right to withdraw from the American Natural Soda Ash Corp., thus initiating a two-year exit process. ANSAC is a consortium of US-based soda ash producers that sells into specific overseas markets. Solvay Chemicals is a subsidiary of the Solvay Group, the world's largest soda ash producer, and says the move reflects the success of its expanded global business.
Solvay felt the evolution of its business made this move necessary as they have grown to a point where logistically and technically they can serve our customers no matter where they operate. ANSAC and Solvay Chemicals are committed to securing a smooth and seamless exit to ensure effective customer supply. Solvay Chemical's full withdrawal from ANSAC will become final on 31 December 2010.
15850/Press Release – 09.01.27
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