THE future ownership of Stirling-based insulation manufacturer Superglass will be reviewed once the company is back on its feet, incoming chairman John Colley has indicated.

Mr Colley, who has spent 20 years in the building materials industry, said there was "a lot more work to be done" to turnaround Superglass after a major fundraising at the end of last year allowed it to proceed with a £6.5 million revamp of its plant.

Mr Colley has been appointed as a non-executive director with immediate effect. He will succeed Tim Ross as chairman on March 31.

There was also a recent change in Superglass's executive team when finance director Tony Kirkbright left the company last month.

Investors reacted warmly to the news of Mr Colley's appointment, with Superglass's shares rising 1p or 4.9% to 21.5p.

Mr Ross has been with Superglass since 2007, when he oversaw its flotation at 180p a share.

But it struggled to recapture early highs and shares changed hands for as little as 1.5p towards the end of last year.

Asked if Superglass, which employs around 190 people, has a future as an independent company, Mr Colley said: "I think the initial issue is to get it back into profitability, turn it into a successful business and I think perhaps then we can start worrying about where to go with the business as a whole and what would be the best thing for it in the longer term."

At the end of last year, Superglass raised £8m from investors, obtained a £2m state grant and handed Clydesdale Bank convertible shares equivalent to 23% of the company in place of £12.15m of debt.

Superglass has struggled with lower-than-expected demand from utility company-backed insulation schemes, and has also been buffeted by furnace problems and high energy prices.

Mr Colley, who also researches and teaches on business strategy at Nottingham University business school, said: "I have spent a little bit of time with the company so I do have some feel for what the challenges are in the business, which I think are reasonably significant."

But he added: "I do think it has a future. I believe there is a clear space in the market for it."

Mr Colley is a former group managing director of plasterboard manufacturer BPB. Following its takeover of BPB, he was executive managing director of St Gobain, owner of Superglass's main UK rival Isover. He is currently a non-executive director of private equity businesses, Jablite and Styropack, and sits on the management committee of their Dutch parent Synbra.