Verallia has announced a strategic review of its industrial footprint in Europe. The glass packaging manufacturer is thus reacting to a change in demand in the European market for glass packaging and is discussing possible capacity adjustments in Germany, France and the United Kingdom.
After several years of growth of around two per cent per year until 2020, the European glass packaging market was initially slowed down by the Covid-19 pandemic, then experienced a recovery and finally recorded a significant decline in volume of 13 per cent in 2023. The company cites a four per cent drop in demand for alcohol in Europe since 2019 and growing pressure on export flows to the USA and Asia as reasons for this.
Examination of a site closure in Germany
Against this backdrop, Verallia has initiated a strategic review of its European sites in order to adapt production capacities to the new market conditions and strengthen its competitiveness in the long term.
In Germany, the considerations relate in particular to the Essen site. Demand in Germany, Belgium and the Netherlands remains subdued and a significant recovery is not foreseeable in the medium term. A concentration of production at the plants in Bad Wurzach, Neuburg and Wirges is being examined. This could lead to the closure of the Essen site and the loss of around 300 jobs.
Adjustments in France and the UK
In France, Verallia is considering shutting down an oven at the Châteaubernard site that has reached the end of its service life. The background to this is a structural decline in the cognac market with no medium-term recovery prospects. Around 60 jobs would be affected. According to the company, this is to be achieved exclusively through voluntary measures, a voluntary redundancy plan and early retirement schemes.
In the UK, the closure of an old furnace in Knottingley is under discussion. At the same time, a more efficient furnace at the nearby Leeds plant is to be restarted. Options for the internal transfer of employees between the two sites are being examined.
The planned steps are part of a sustainability and investment strategy. Verallia announced that social dialogue with employee representatives and trade unions would be the focus of further action.
Source: Verallia
