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Technology Stocks : REFR- 2002 and Beyond
REFR 1.570+0.6%3:59 PM EST

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To: N. Dixon who started this subject8/25/2002 5:50:59 PM
From: N. Dixon of 600
 
Ceramic Industry, August 2002

Flat, specialty glass reflect weak economy; container glass markets remain strong.
Christine L. Gral.


[Portion of article]
.....

The slowdown in the U.S. automotive industry also affected Vitro and Pilkington, with both companies reporting slightly lower sales volumes to original equipment manufacturers. However, sales to construction markets were generally higher, despite mixed market conditions and a significant decline in demand in the second half of 2001.

Many flat glass companies have turned to high-added value products to compensate for weaker overall demand. For example, in June 2001, Pilkington became the first manufacturer to introduce a self-cleaning glass product. Called Activ [TM] glass, the product uses the sun's ultraviolet rays to gradually and continuously break down and dissolve organic dirt through a photocatalytic effect. The glass also uses a hydrophilic effect to reduce the surface tension of water, causing it to sheet down the surface and wash away dirt to leave windows clean.

By August 2001, PPG had its own self-cleaning glass, called SunClean, which works on the same principles. Vitro's Automotive Glass division has been pursuing bulletproof glass to take advantage of growing market demand, and Saint-Gobain has said that its research and innovation efforts will be directed toward products such as self-cleaning glass for homes; new grades of anti-reflective glass for applications in automotive, building and home appliance markets; a new generation of solar-reflecting coatings; and electrochrome glass for cars.

According to a new study by The Freedonia Group, Inc., demand for advanced flat glass in the U.S. is forecast to grow 9.6% per year to $2.6 billion in 2006 and will represent 22% of the total fabricated flat glass market in the U.S. at that time. These figures encompass solar control glass (low-emissivity glass; reflective glass; and "smart " glass, which can be lightened and darkened on command), security glass (bullet- and burglary-resistant and fire-rated glass) and other emerging niche products, such as heads-up display (HUD) windscreens, ultraclear glass and self-cleaning glass.

Three distinct but interrelated drivers are promoting gains for these products: efforts to improve energy efficiency in buildings and automobiles; heightened security concerns; and increased demand for products exhibiting improved safety and convenience features.

Demand for advanced flat glass will accelerate based on rapid market base expansion for a range of innovative new products. Among the products forecast to see impressive gains are smart glass , particularly electrochromic windows; self-cleaning glass, which is architectural glass that has been coated to improve water sheeting properties and thus reduce (though not eliminate) the need for washing; and HUD windscreens in motor vehicles, which allow critical data to be superimposed on the windshield.

Perhaps the most significant of these introductions is smart glass , where demand is forecast to expand nearly 20% per year to $445 million in 2006, driven by the large-scale commercial introduction of smart windows for homes and commercial buildings. These windows offer unprecedented control, aesthetics and energy efficiency, though high prices and the need to integrate their use with the building's heating and air conditioning systems will initially relegate them to high-end, custom-built homes.

Market gains also will benefit from stable demand for a range of more established solar control and security products. The market for security glass, particularly bullet- and burglary-resistant types, has seen a sharp but likely temporary spike related to enhanced domestic security measures in the aftermath of the terrorist attacks of September 11. In particular, security glass is being installed in many government buildings, research facilities and laboratories.
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