Following the Annual General Meeting of the CPIV on 22 June 2004, the committee released its annual statement on the European glass industry in 2003.
The EU is the world“s largest glass market, both…
Following the Annual General Meeting of the CPIV on 22 June 2004, the committee released its annual statement on the European glass industry in 2003. The EU is the world“s largest glass market, both in terms of production and consumption. The European glass industry with its +/- 1000 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 more than 10 multinationals each of more than 1000 employees. The other companies are small or medium-sized but mainly specialists. In 2003, total EU glass production reached a volume of 29.12 million tonnes, a level similar to the previous year making the EU the largest glass producer in the world with a market share of around 27%. At the same time, production value amounted to some EUR 32 billion (similar to 2002) with a world share of 29% (US production was approximately 3/4 and Japan“s production just over 2/3 of the EU level). With restructurings and merges, alliances, co-operations and take-overs, companies have increased their strength and investing in central and Eastern Europe but also outside this area. With the forecast revival of the economy in Europe and abroad, and thanks to rationalisation measures in recent years, the glass industry should be growing in 2004. Glass production reached a total volume of 29.12 million tonnes in the EU in 2003 and has only been growing very slowly in recent years. As a comparison, world production grew by 1% from 2002-03 reaching a volume of about 120 m tonnes of glass and about the same figure in value in billion euros. 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 will continue to grow slightly over the next years, although less than before, thanks to population growth and technical improvement in particular, but the driving factor for future production increases will mainly be exports to non-EU countries. However, it should be noticed that due to the growing legislative burden, investments are now increasingly made outside the EU. Generally speaking, one can say that foreign trade from third countries plays an important but not dominant role in the EU glass market (extra-EU exports = 11.4% of production volume, but growing) and that foreign trade growth mainly comes from extra-EU exports and imports. In 2003, total exports slightly decreased by about 0.4% in value and 0.8% in volume. Exports vary from subsector to subsector and were of greatest importance to the special glass and tableware sector and of least importance to container glass (due to the transport cost in particular). Germany is Europe“ and the world“s largest exporter. Intra-EU exports account for three-quarters of total exports. As for extra-EU exports, they have grown steadily over recent years. The EU“s four major clients (volume): Central Eastern Europe (40.5%, increasing), Western Europe (14.6%), the USA (10.1%), and Far East Asia (6.4%). As for imports, in 2003 they grew by 6.7% in volume but are stagnating in value. Extra-EU imports in volume only made up 29% of total imports, increasingly coming from Eastern Europe and the new Central European EU member countries that are able to produce glass of good quality at lower cost. They almost make up 40% of the volume. Other competitors: Far-East Asia (19%), the rest of Western Europe (8.8%), the USA (6.5%) and Turkey (10.2%). 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 progressively. At the same time, productivity has grown, more steadily and regularly since 2001. Currently, the EU glass industry employs 162,000 people. This trend is expected to continue over the following years. OUTLOOK After a difficult year 2003, the glass industry should grow slightly in 2004. Several elements indicate real growth to be expected in many subsectors. Again, the glass industry will be influenced in 2004 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 confirmed. On the other hand, the glass industry is faced with political and economical uncertainties that still continue to weigh on consumer demand for products such as domestic glass. Foreign demand is timidly reviving after a deep economic slump in several parts of the world. Prospects for 2005 seem to be on the bright side. However, 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, puts the industry to the test 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.