The latest contract between Siemens and Pilkington is set to save the glassmaker approximately £2m over the next five years, through improvements to energy performance across its Watson Street and Greengate manufacturing factories.
Siemens will supply the latest energy-saving technological solutions and products from its own portfolio as well as that of other manufacturers.
The project is funded by Siemens Financial Services, meaning Pilkington does not have to commit any capital expenditure upfront, but fund the project through savings, alleviating the risk of committing to a high-value contract.
The success of the strategic partnership can be attributed to the glass energy service proposition, named the Siemens’ Energy Partnerships initiative, which was developed between the two companies to address the specific needs of the glass industry.
This innovative approach has since been recognised by the wider industry and was awarded a Supply Chain Initiative Award at Glass Focus 2016.
Steve Martin, Head of Glass & Solar at Siemens UK & Ireland explains: “Winning the Glass Focus award is a real honour and a mark of recognition from the industry for the truly innovative work we are doing for the glass sector.
“We approach every project by identifying where we can add maximum value. Rather than just specifying our own products, we take a holistic approach, sourcing non-Siemens technology where appropriate.
Resource and time is a big issue in the glass industry, which is why we invest heavily in skilled people to complement and bolster the teams our customers already have on site.
“Funding is also a key component of the initiative. Glass is a capital-intensive business meaning CapEx is at a premium in terms of where companies spend it.
Through Siemens Financial Services, we also take on the majority of the financial risk, and ensure key metrics are hit from day one.
“Our long-term approach also allows us to draw from previous experience to provide the best possible solutions for customers. It is for these reasons we believe Pilkington has once again chosen us as its preferred partner.”
In addition to the projected energy cost savings, the solutions will also deliver maintenance and reliability improvements which will be reinforced by Siemens’ warranty and servicing provision.
Gary Charlton, Operations Director at Pilkington comments: “We value the relationship we have with Siemens as it helps to underpin our strategic growth and operational strategies. This contract is testament to the success of our partnership and we hope to continue working together for mutual benefit.”
Steve Martin from Siemens adds: “Energy consumption is a huge challenge in the glass sector and we are working closely with manufacturers such as Pilkington to continue developing value-added propositions for the industry.”