Investments in 1996 totalling 75 billion lire are to be made by SIV (Societ Italiana Vetro), part of the Pilkington Group. According to general manager, Pat Zito, the investments are largely aimed at …
Investments in 1996 totalling 75 billion lire are to be made by SIV (Societ Italiana Vetro), part of the Pilkington Group. According to general manager, Pat Zito, the investments are largely aimed at the company“s Italian operations. Mr. Zito, also the Finance Manager of Pilkington in Europe, outlined in a meeting the fiscal results for 1995 and the projected scenario for 1996. “The picture is certainly bright, in particular for the two sectors that Pilkington will consider strategic: automotive and architectural. Nevertheless there are worrying signs”. In 1995 SIV reported an increase in automotive glass sales due in part to a slight growth in the auto market, better market conditions and the weakened Italian lira. However, this progress was offset by raised costs and the continued decline in prices, owing to client and competitor pressures. Regarding architectural glass, the sector profited from higher selling prices trends maintained in the market, improved productivity and reduced operating costs. In particular, transportation costs declined because of sales which were concentrated to clients located in areas closer to the Porto Marghera plant near Venice. Decisively bad news, on the other hand, came from the fibre sector, whose results were much worse because of scarce demand and over-supply. The programme to rationalise the asset base of the company and concentrate on the strategic sectors of automotive and architecture is furthered by the sale of a non-profit-making business and the closure of its metal pressing and auto mirror businesses of Frese in Germany . The proceeds from the sale of these businesses, explained Mr. Zito, greatly contributed to profitability in 1995 (net profits of 70 billion lire in the consolidated financial statement, and indebtedness reduced to 102 billion lire). Mr. Zito added that future profits are strictly tied to commercial activities and that, despite significant progress in markets in Germany, Italy and France, unfortunately “for the years 1996 and 1997 relatively low growth is forecasted”. He also added that in the first few months of 1996 there was a considerable drop in prices in the architectural sector and demand has tapered off considerably. Further, sales in the auto sector, shy in the first quarter, have showed signs of picking up. SIV also plans to develop a centre in Turin for encapsulated, extrusion and production processes which give added high value. Mr. Zito also stated that SIV is producing “Syndic“, a high-technology glass that reflects heat, and until now only produced in the United States and imported by SIV. In addition, SIV was chosen “Supplier Of The Year” by General Motors earlier this year. SIV has supplied GM for over 20 years with automotive glass for its vast model range and this award, the company says, is the recognition of years of hard work and dedication of SIV workers. In addition, in 1995 SIV, together with Libbey-Owens-Ford, Blindex and Pilkington Australia made the winning bid for global supply of glass for the new GM car “Astra“ that will be launched on the market in 1997. This significant achievement means that in 1997 the Italian company will be the major “glass systems” supplier of GM Europe.