Glass packaging production volumes in Europe grew by 1.9% in the first half 2012 according to data published by the European Container Glass Federation (FEVE).
The growth is in response to the increasing demand on the domestic and outside European Union (EU) markets. This builds on the positive trend recorded in 2011. Despite the unstable economic and financial crisis that negatively affects the whole European manufacturing sector, these records shed a positive light on the stability and future prosperity of the European container glass sector.
In the first six months, the industry produced 10.9 Mtonnes of glass compared to 10.7 Mtonnes in the first half 2011. The increase was striking in countries such as Portugal (13%), Poland (7%) as well as in the North and Central Europe (6.2%) and South and East Europe (5.1%). Other EU countries like the UK (2.9%), Germany (1.4%) and Spain (1%) kept the steady trend of previous years while other countries recorded a slow-down after strong growth in 2011. Turkey confirms a dazzling trend (8.3%).
Despite encouraging results, the impact of the long-winded financial crisis on the industry continues to weigh heavily on the competitiveness of the EU industry. Increasing energy prices, unilateral CO2 costs, fluctuating and unfavourable exchange rates, and high labour costs hamper the cost competitiveness at global level of the container glass sector. Combined, these challenges delay long-term investment decisions and rather become incentives for delocalisation of production sites and R&D investments outside EU to more industry friendly environments with lower costs.
The EU manufacturing sector, including the container glass industry, continues the main driver of productivity growth in the EU. According to the European Commission, Europe accounts for approximately 30% of global consumption, and the European industry is clearly the most important sector for European international trade accounting for over 90% of overall exports of goods.
For more information, visit www.feve.org