UK: Superglass Holdings plc, a Stirling, Scotland-based manufacturer of glass fibre insulation, has reported in an interim management statement covering 1 September 2012 to 14 January 2013 that the first phase of Project Phoenix, its capital investment programme, remains on budget and is on track for completion during the first half of 2013.
Estimated annualised cost savings from the programme have increased from Euro4.33m to Euro6.02m, with the first full year of savings expected in 2013-2014. The increase in savings is mainly due to the installation of new fiberising technology. One of the company's newly installed production lines is now running at full capacity and the second line scheduled to be upgraded in the spring of 2013. However, upgrading each line will incur 'significant' costs as a result of six weeks production downtime.
Sales volumes for the period have been steady but a stronger than anticipated demand for volume commodity products has had a negative impact on average sales prices. Overall market conditions are also affecting prices. Input costs have remained under pressure, particular as energy costs continue to rise.
Superglass remains cautious about the UK Green Deal and it continues to work on broadening its routes to market. Volumes are likely to reduce with potentially slow start-up of the Green Deal scheme.
