UK Window Group today announced it has sold assets, including the entire Duraflex PVC-U system facility, to a subsidiary of Boxwood Capital, the company that bought the group from the Masco Corporation last year.
The sale follows the news earlier this week that the group was closing its Caerphilly HQ and fabrication plant read story.
Safestyle, a major Duraflex fabricator, immediately replied with a statement that it has built up sufficient buffer stocks of profile to mitigate the impact of the move.
The UK WG statement says: “UK Window Group today confirms that following an extensive process, certain assets of the Company have been sold to a subsidiary of Boxwood Capital Ltd in a related party transaction as part of a wider strategic restructuring programme. The transaction secures the long-term future of the Company and the jobs of over 850 employees in South Wales and England through a much improved and secure financial position.
“All employees have been transferred to the new legal entity. Moreover, we are working closely with Community, the trade union, regarding proper consultation for employees at our Caerphilly site, following the announcement of its closure earlier this month. In addition labour requirements at Williamstown are also under review and that too will form part of the ongoing consultation process with Community and employees. We have roles available at other locations and we will be engaging with the affected employees on potential reassignment to minimise the impact on them.
Suppliers and customers have been informed and it is business as usual.”
Safestyle said in response: “Safestyle has been working closely with the board of UK Window Group and its owners over the last nine months as they have been implementing a turnaround plan for their business. During this process we have put in place a range of risk mitigation measures, including building significant buffer stocks of window profiles. This ensures the Group has sufficient stock in place to largely mitigate the impact of a forced change in profile supplier.
“Following this restructure by UK Window Group, the Board does not anticipate any major interruption to our supply of PVCu profiles. Supply chains generally remain stretched by recent good levels of demand in the industry but these challenges will be manageable over the coming months.”
