Glass Industry News

Verallia considers glass furnace closure after drop in demand

, Verallia

Verallia is considering closing a furnace at its Essen, Germany site after a drop in glass demand.

Cited from annual report 2023 by CEO Patrice Lucas "

Our main takeaway on the activities is:
2023 decline in glass demand was unprecedented and led by destocking; Post-COVID supply chain disruption has given low short-term visibility in a usually predictable industry. For 2024, with the latest information we have, we confirm a gradual recovery from 2023, but at a slower pace than expected due to the end consumption forecast revised down, meaning that destocking will still impact H2. This is why, having this new set of data in hand, we have decided to revise our forecast for 2024 based on this lower activity. And to be more specific, our initial assumption for 2024 was to have a Q2 close to last year, an H2 up H1 2024 up low-teens, giving a full year up low-to-mid single digit. Now, based on Q2 being down low-to-mid single digit, our new volume assumption for H2 is up high single digit for full- year being flat to slightly down.

However, the important point for the semesters to come is that glass demand is expected to return to more stable growth and visibility as it reconnects with the end consumption. Facing this lower activity recovery, we have strengthened our action plan with determination a nd here you have as a summary some of the key actions in place. On pricing, despite the challenging environment, we are maintaining our tight pricing policy.

We are continuing focus on value-based pricing. On capacity adjustment, right now, we are running at 10% capacity down for inventory control. And we are doing that in a smart way, with a mix of extended cold repair and temporary line shutdowns but taking mostly the benefit of our cold stops. On capacity shutdown, we have decided as well to stop one furnace in Essen, because here we see something much more structural, and we have close to 90 redundancies for a one-off restructuring cost of €10 million.

Glass International can be cited: The French container glass manufacturer reported a revenue drop of 17.6% compared to the same period last year.

The group said demand continued to increase but at a slower rate than first anticipated.

CEO Patrice Lucas told analysts that the destocking period, which had begun in early 2022 after the invasion of Ukraine, was lasting longer than expected.

In its latest financial note the group reported revenue of €1,765 million in H1 2024, 17.6% lower compared to H1 2023.

In Northern and Eastern Europe, half-year volumes were considerably lower than last year, impacted in particular by the strong decline in Q1 and more generally by the weakness of beer and non-alcoholic beverages activity in Germany and the spirits sector in the UK. As a result it may close one of three furnaces at its Essen glassworks in Germany and started discussions with the works council there earlier this year. In Southern and Western Europe, volumes saw a slight sequential improvement during the half-year. 

However, they remained down compared to H1 2023, with a sharp decline in non-alcoholic beverages, affected by unfavourable weather conditions (carbonated soft drinks, fruit juices). In its outlook for the rest of the year it said: “After 2024 started in line with our expectations, recovery in demand was confirmed in the second quarter in most markets in which Verallia operates. 

“This recovery is however slower than anticipated and we estimate that activity in the second half should continue to improve at a slower pace than we initially expected.”

, © Verallia

此网站新闻材料的版权属于公司或第三方的新闻提供者,其所有权利保留。所有新闻材料对其访问者只能限于其本人使用,并且使用此材料的风险由其使用者独自自行承担。严禁对新闻材料进行再次发布和其它商业利用. 作为商业贸易的用途。如果新闻材料由第三方提供,当应用此新闻材料时,每个使用者都同意遵守,并且受此特定的项目的约束。Glass Global并不代表及认可新闻材料中所包含的内容及新闻中的外部网站的内容的准确性及可靠性。

Should the content or the design of these sites violate third parties rights or legal prescriptions, we kindly ask you to send us a respective message without invoice or cost. We guarantee that passages where the claim is considered as justified will be removed immediately, without any necessity to involve any lawyer into this issue. We will reject any claim caused by submission of a honorary note in this regard without any prior contact and confirmation of the issueby us and we reserve the right ssue counter claim ourselves because of violation of aforesaid conditions.



Info Grid

Glass studies

Updated worldwide glass study 2024

plants.glassglobal.com

Updated hollow glass study 2024

Request more information

Updated float glass study 2024

Request more information

Further glass market studies

Request more information

公司简介



Updated worldwide glass market study 2024 available now for flat, container glass and tableware

We have updated our international studies on flat glass, container glass and tableware for 2024.

This unique software provides a global overview about glass producers and technical details. Easy to use and clear tables summarize information and data about glass makers such as: Glass types: flat glass, container glass, tableware, production capacities in regions and countries, number of furnaces, furnace types, year of construction, glass types and sub-types, products, project information, special news and downloads.

Further databases supplying demoscopic data and import and export data complete the market survey. Based on these data, prepare individual country profiles with information about local production capacities, local market sizes and expected demand in the future.

Request your offer via plants.glassglobal.com.

Updated container glass study 2024

X

Updated float glass study 2024

X

Further glass studies and reports 2024

X