Glass half full for availability, price and carbon footprint

By Paul Gander

- Last updated on GMT

Related tags United kingdom Supply and demand

Glass half full for availability, price and carbon footprint
The UK glass industry is fighting on different fronts to ensure that supply matches demand, pricing is seen to be fair and - not least - that...

The UK glass industry is fighting on different fronts to ensure that supply matches demand, pricing is seen to be fair and - not least - that packaging choices take into account its strong record on recycling.

Problems of glass jar and bottle availability last year and earlier this year are already easing, say glass manufacturers, and will improve still further. Last year, a shortfall in supply in southern Europe, and especially France, led to unexpected demands on UK glass plants.

"Output has grown year-on-year, but it has been sluggish at times," admits Adeline Farrelly, secretary general of FEVE, the European container glass federation. "Now the message I'm getting from members is that they want to claw back market share."

Farrelly points out that overall European production grew by 4% between 2006 and 2007. In fact, according to FEVE's figures, while UK growth was almost in line with this figure, French production fell by almost 3%.

Ardagh Glass says it is investing euro 450M over the next four years or so to upgrade its furnaces and maintain, rather than expand, production around Europe.

David Workman, director general of industry confederation British Glass, adds: "Allied Glass has brought on a new furnace and the new Quinn plant is up to full production." He says: "I'd have said we've pretty much reached equilibrium on supply and demand in the UK."

But fillers are not all convinced that supply is where it should be, especially for smaller batches. One soft drinks filler points out that the 2007 increase in UK output could easily be soaked up by the alcohol sector, particularly beer, with the growth in take-home sales that the sector has seen.

Meanwhile, Ardagh is among the three leading players in the massively consolidated European glass industry to be facing claims of anti-competitive behaviour and price-fixing at the European Commission.

On the environment, Farrelly says that the federation is currently putting in place a "major communications programme" that is aimed directly at consumers. "Some retailers focus on the weight side of carbon footprint and the product lifecycle. But in fact, the recycling aspect means that glass is an environmental angel, and can be recycled again and again."

Related topics Packaging materials

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