Open window for glass maker

May 21 2008 by Chris Knox, The Journal

SPECIALIST glass maker Romag Holdings has unveiled plans for a massive new plant after seeing sales soar as it sells its power-generating windows around the globe.

The County Durham company saw revenues jump by 69% to £11.58m over the six months to the end of March and hopes to continue the momentum by selling its PowerGlaz solar power generating glass to the Middle East.

The 27-year-old Consett firm has just opened a second production line and is now expanding its 20,000sq ft factory to make room for two more.

It is also planning to buy around 200,000sq ft of land at its base in the Leadgate Industrial Estate so it can build a further new plant with room for another production line.

The firm, which also produces toughened glass for Government buildings and the military, said it is likely to expand its current 200-strong workforce as its business grows.

Romag is already leading its sector in Europe and now hopes to repeat its success in Middle Eastern countries including the United Arab Emirates.

Chief executive Lyn Miles said: “It is a very exciting time here at Romag. The worldwide market for photovoltaic glass grew by around 60% over 2007 and we want to make sure that our increased capacity enables us to represent a large part of it.

“Developing economies such as Dubai present a magnificent opportunity for us to take the business forward.”

The firm had suffered from a delay in some of its security transport projects this time last year, which saw its turnover dip 8% to £6.9m for the six months to March 2007.

However, sales of its PowerGlaz products have since rocketed in mainland Europe with the help of the new production line and high demand from countries including France and Germany, where an environmentally friendly tariff structure makes it beneficial for local government to use solar panels in their developments.

The firm, has seen its exports rise from 22% of total sales to 72% as a result, which has helped grow its pre-tax profits by 21% to £900,000 over the six-month period.

However, margins were down from 33% to 22% as a result of the cost of the new production line and the employment of 50 staff to operate it.

“It has taken a long time and a lot of investment to get to the point where we can really push forward with PowerGlaz and our other projects,” said Ms Miles.

“We are now in a position to become one of the biggest companies of our kind in the world. I’m just so happy that we’re doing this in the North East.”