Vetropack has postponed the start up of its Italian glass packaging plant until the second quarter of 2023.
The Swiss glass container manufacturer said the postponement of the Boffalora project, near Milan was due to supply chain delays for construction material.
The budget for the project has now increased to €400 million as a result of the delay as well as the increase in raw material and energy costs.
The decision to build the plant at Boffalora sopra Ticino was originally announced at the end of 2018 with a €200 million investment.
Johann Reiter, CEO of Vetropack Holding, said: “It is becoming increasingly clear that we will not be able to complete the construction of our new production facility in Italy either on time or within the planned budget.
"Despite the delay, we will continue to push ahead with the completion of the new plant at full speed: The Italian market is of great importance to us and, with its many global brands, plays a central role in our strategy."
Several factors contributed to the launch being postponed: official procedures in particular caused delays. In addition, market-related bottlenecks in the supply chain for the new building have led to further postponements within the project.
"These are factors that we as a company have little or no influence over," said Mr Reiter.
"We have positioned ourselves in such a way that we can react quickly to changes and thus ensure our ability to deliver for our customers.
"Nevertheless, the extended project duration has a negative impact on costs: the problems in the supply chains, but also the enormous increases in prices for raw material and energy will cause additional costs.
"We are convinced that we will recoup the additional costs in the medium term through the new plant," he added.
"The decision for Boffalora as location as well as for the investment in this greenfield project remains the right one.
"It is going to be a highly efficient production facility that will open up additional growth opportunities for us in the Italian and neighbouring markets."