www.britglass.org.uk

ICF

Technical Exchange

Conference

Weiden – October 2006

David Workman – Director General

1.State of the UK glass industry

2.British Glass – what does it do?

3.British Glass 2000

4.British Glass 2006

5.Lessons Learned

The Presentation

The good news:-

c €3 billion of investment 1996 – 2006.

Two new container plants – Quinn Glass.

Two new float glass plants - Saint Gobain

- Guardian

One new insulation fibre plant – Knauf.

Growth markets – container, flat, insulation fibre.

Growth in overall tonnage.

Improved recycling performance.

UK Glass Industry

The bad news:-

Gas and electricity prices up by 300% 2003 – 2006.

Raw material and transport costs up.

Costs of environmental compliance measures growing.

Fierce competition in all sectors.

Import penetration.

Result – profits being drained from the industry.

UK Glass Industry

Famous names have gone.

- Corning Optical Fibre

- LG Philips

- NEG

- SLI

- Practically the whole of the domestic/crystal sector

- Edinburgh (in administration)

- Caithness (in administration)

- Heron Crystal

- Stuart Crystal

Nett employment down c6,000 2003 - 2006

UK Glass Industry

Production- kTonnes

Container , 2,186

Flat , 995

Domestic, 1

Special, 24

Fibre, 51

UK Glass Industry

(2005)

British Glass – What Does It Do?

British Glass acts as the voice and face of the UK’s glass industry in its dealings with regulators, legislators and NGO’s in Europe, Westminster and the UK’s regional assemblies.

Through its subsidiary, Glass Technology Services, it offers a range of consultancy, analytical and environmental services both to members and non-members.

British Glass

Based: Sheffield

Employees: 40

Turnover: £2.1 million

Members: 92

British Glass Activities

BG

Glass Technology Services

Consultancy

Projects

Product Performance

Analytical

Environmental Monitoring

Worldwide

Manufacturers Confederation

Energy & Environment

Health & Safety

HR/Training

Information/Research

Packaging Directorate

UK & Europe

CouncilF & G PEnvironment & EnergyE & E SteeringCCNA BoardIPPC Sounding BoardMaterials SupplySpecial and ScientificDomesticHealth & Safety plus Working GroupsHR/Training plus Working GroupsFlatContainer

BG Committees

ContainerPACPAC SteeringMarket ResearchTechnicalPackagingTechnical Directors Forum

BG FocusMember Focus -

MarketsBG Focus – Legislation

PackagingConstructionAutomotiveCrystalScientificTelecomsOpticalHome Insulation Electronic – Lighting Domestic / Tableware Electronic - White Goods

Results Tangible

UK Glass Industry Trade

Association

CPIVFEVE

GEPVPESGAEDGICF

EU

UK Governmen

tLocal

Authorities Regional Assemblies

Government bodies, Regulators,NGO’s, Pressure Groups

Results Intangible

The Legislative Challenge

Occupational Exposure Levels

H&S Legislation

Thematic Strategies

REACH (Chemicals Directive)

Climate ChangeProgram

Air Quality Framework Directive

IPPC

Groundwater Quality Regs

EU Emissions Trading

Discrimination at Work Legislation

WEEEPhysical Agents

EOLV

Energy Performance of Buildings Packaging and

Packaging Waste

Lead/Heavy Metals

Working Time Directive

Integrated Product Policy

UK Glass

Ind

Traceability

Lobbying Strength.

BG represents the whole of the glass industry.

Most major issues are horizontal.

Government has one point of contact.

As a result we get invitations to sit on numerous Government advisory bodies.

British Glass

British Glass

Lobbying -

Alone and with other sectors to

- Government Departments

- Ministers

- Members of Parliament (UK & EU)

- Regulators

- The Media

- Influential NGOs

British Glass 2000BG - Losing money

- No strategic direction

- Operating out of run-down building

- Equipment failures

- No IT

- Culture – rooted in academia

- No commercial realism

- Little or no lobbying

As a result members had lost confidence and saw no value in continuing to support BG.

British Glass 2000 - 2006

1. New Premises - Built to our specification

2. New organisation - Fresh blood

3. Cultural change - Value/profit orientation

- Training and

appraisal

schemes introduced

British Glass 2000 - 20064. Return to sustainable profit - Development of GTS

services to meet industry needs

- Improved management/

reporting systems

- Long-term consultancy projects – WRAP, M.O.D, Carbon Trust

5. Investment in GTS - SEMs, XRFs, stack monitoring equipment to broaden our customer base.

British Glass 2000 - 2006

6. I.T. - Rationalisation of system

- New accounts package

- Re-vamp of data bases

- Data collation systems (C.C.A’s)

- Remote access

British Glass 2000 - 2006

7. Communications - Re-vamp of web site with members section

- Set up intranet

- Reintroduced annual review

- Re-vamped quarterly Looking Glass

Magazine

- Introduced quarterly sector e-bulletin

British Glass 2000 - 20068. Quality Systems - ISO 9001

- ISO 14001

- UKAS – ISO 17025

- Mcerts

9. Developed Core Competancies - Energy and Environment

- Health & Safety (plus glaziers)

- Employment/Training

- Information Office

British Glass 2000 - 2006

10. Alliance Lobbying - CPIV in Brussels

- The Trade Unions

- Other Industrial Sectors

- Parliamentary Groupings

British Glass Results1. Sustained profitability

2. Quantifiable benefit to members

- CCA rebates

- EUETS Phase Two Allocations

- Reduction in accidents

- Government funding for industry

3. Higher profile in Government – both in London and Brussels

4. Highly motivated, well trained and commercially aware staff

5. Members who now see BG as an asset – not just a cost

British Glass – Lessons Learned1. The glass industry is more influential if it operates as one

and in active alliances with others.

2. T.A.’s need to be value/profit focussed.

3. T.A.’s need to lead opinion.

4. T.A.’s need to be trusted – integrity is imporant.

5. T.A.’s need to communicate on a number of different levels both with members and those that need to be influencial.

6. If you put the right people into responsible positions, empower them and encourage them you will get positive results.

British Glass – Lessons Learned

BUT YOU MUST KEEP TELLING THE

MEMBERS HOW GOOD YOU ARE AND

QUANTIFY THE BENEFITS IN HARD

CURRENCY.

THANK YOU FOR YOUR ATTENTION