As the industry struggles to come to terms with the dual problem of the deepest recession for decades & saturation in the replacement window market, Pilkington have sent a letter to its customers informing them of impending price rises: "As you will be aware, the demand for raw glass in the UK in the last year has declined to unprecedented levels & revenues have fallen dramatically along with demand. Pilkington has taken action to reduce its cost base & to try to balance output & demand. The firm ceased production on one float line in St Helens last October & has also closed 5 downstream branches across the UK. However, both demand & prices have continued to fall & despite the cost reductions, glass manufacture & supply has become uneconomic & the situation cannot be sustained. As a result we have taken the decision to urgently & increase the price of our raw glass. We understand that this will put pressure on our customers in the short term but we hope that you will recognise that it is vital in the long term to return prices to a viable level."
