Pilkington expertise 'sealed deal'

THE 20% share stake taken by Japan's Nippon Sheet Glass in Pilkington is seen by the glassmaker's chief executive, Paolo Scaroni, as an endorsement of its revolutionary self-cleaning glass technique.

Tests so far on Pilkington's self-cleaning ActivO glass in buildings in the US, Austria and Ireland have been successful. Next year the group plans to sell 30,000 tonnes of it. Scaroni believes the group will be selling 80,000 tonnes of the glass within four years. Pilkington has had technical agreements with Nippon, which makes glass for Toyota and Honda, since 1987.

Meanwhile Scaroni has to contend with more difficult market conditions, despite achieving the best first-half performance for a decade. Pre-tax profits were up 14% in the six months to September on turnover up 8% to £1.47bn. Earnings per share increased by 21% to 5.1p. The interim dividend is maintained at 1.75p.

Pilkington shares slipped by 2p to 103p as Scarino warned of weakening markets for glass in the US and the Far East.