The CPIV released its annual statement on the European Glass Industry in 2004, following the CPIV Annual General Meeting on 23 June 2005.
The EU-25 is the world“s largest glass market, both in terms…
The CPIV released its annual statement on the European Glass Industry in 2004, following the CPIV Annual General Meeting on 23 June 2005. The EU-25 is the world“s largest glass market, both in terms of production and consumption. The European glass industry with its ca. 13,000 companies accounts for more than one quarter of the non-metallic mineral sector. The glass industry is highly concentrated and more than 80% of glass is produced by about 10 multinationals of each more than 1000 employees. The other companies are small or medium-sized but mainly specialists. In 2004, total EU-25 glass production reached a volume of 32.6 million tonnes, making the EU the largest glass producer in the world with a market share of around 30%. At the same time, production value amounted to some EUR 35 billion with a world share of 32% (US production was less than 3/4 and Japan“s production about 2/3 of the EU level). With restructurings and mergers, alliances, co-operations and take-overs, companies have increased their strength and investing in central and Eastern Europe but also outside this area. Despite a slowdown of the growth in the 1H-year, but thanks to rationalisation measures in recent years, glass will again be growing in 2005. In the EU-15, glass production reached a total volume of 29.07 million tonnes (EU-25: 32.6 million tonnes) in 2004 (a very slight increase) and has only grown very slightly in recent years. As a comparison, world glass production reached a volume of about 110-120 million tonnes with a similar value in billions of EUR. Germany is the EU“s biggest producer with about one quarter in volume, closely followed by France, Italy and the UK. As for the future, it appears that the European market for glass should continue to grow slowly over the next years but more strongly in the new Member States thanks to population growth and technical improvement in particular, but the driving factor for future production increases will still be exports to countries mainly outside the EU. It should be noted that due to the growing production costs and the sharply rising legislative burden, investments are now made increasingly outside the EU. Generally speaking, it can be said that foreign trade from third countries does not play a dominant role in the EU glass market (and a part of the trade appearing as extra-EU is in fact trade with the new member States) and that foreign trade growth mainly comes from extra-EU exports and imports. In 2004, exports increased by about 5% in volume and 4.5% in value in the EU-15. Exports vary from subsector to subsector and are of greatest importance to the special glass and tableware sector and of least importance to container glass (although this only covers exports of empty glass containers). Germany is Europe“s and the world“s largest exporter. In EU-15 intra-EU exports accounted for three-quarters of total exports (and close to 80% in the EU-25). As for extra-EU exports, they have steadily grown over recent years. The EU-25“s major clients (by volume): the rest of Europe including Turkey (47.2%; Russia alone 14.2%), the USA (12.4%) and Far East Asia (7.8%). As for imports, in 2004 they increased by 5% in volume and 4% in value in EU-15, of which extra-EU made up 22%, a large part coming from Member States; with Eastern Europe and the Far East these are able to produce glass of good quality at lower cost. Indeed, in EU-25 Far East Asia accounted for 37.5% (China 23%), the rest of Europe (38% with Turkey 14.6%), the USA (8%). EMPLOYMENT In order to be able to compete in a global work and with strong pressure from cheap imports, the glass industry has undergone a phenomenon of concentration with streamlining measures and increased automation of production. The number of employees has therefore decreased continuously over the last years. At the same time, productivity has grown, more steadily in the last couple of years. Currently, the EU glass industry employs 162,000 people in EU-15 and 229,000 in EU-25. This trend is expected to continue over the following years, probably with more intensity in the new Member States (their share of the total EU-25 employment is ca. 30%). OUTLOOK After an overall positive 2004, the glass industry should continue to grow in 2005 despite a more difficult start due, amongst others, to rising energy costs. Several elements indicate real growth not to be expected before the end of the year. Again, the glass industry will be influenced in 2005 by the evolution of the building and consumer and utilities goods sector. For automotive and building products, the growth in the demand for glass seems to be difficult. On the other hand, the glass industry is faced with political and economical uncertainties that continue to weigh on consumer demand for products such as domestic glass. Foreign demand has revived in several parts of the world. Prospects for 2006 are positive. Again, it has to be noted that, compared to other parts of the world, the EU (glass) industry is facing a higher and strongly increasing legislative burden, that, along with higher taxes and labour costs as well as proportionally higher energy and raw materials costs, puts the EU industry at risk in a global environment. The CPIV is the standing committee of the European Glass Industries, and is the sole voice of the whole European glass sector before institutions of the European Union.