Şişecam to invest 84 million EUR in new glass packaging furnace

Şişecam's new furnace investment with an annual capacity of 155,000 tonnes is planned for Eskişehir, where glass packaging production is currently underway with four furnaces

Şişecam, one of the world’s leading players in all core areas of glass including flat glass, glassware, glass packaging, and glass fibre, as well as soda and chromium compounds, has announced plans to invest in a new 84 million EUR glass packaging furnace in Eskişehir, Turkey. This new furnace is scheduled for completion and full operation by the beginning of 2023.

Şişecam Chairman of the Board of Directors, Prof. Dr. Ahmet Kırman, delivered a statement regarding the new investment. He emphasized that Şişecam is one of the leading players in the world glass industry in all key areas of glass production, including flat glass, glassware, glass packaging, glass fibre, and automotive glass, as well as soda and chromium compounds. Şişecam continues to move ahead with its investment plans toward its aim of becoming one of the top three producers in the world in its core business areas.

Prof. Dr. Kırman added, “Today, we operate in 14 countries on four continents with 22,000 employees, introducing innovative products to our customers in more than 150 countries worldwide. We are the world’s second-largest glassware manufacturer. We rank fifth globally in the production of glass packaging and flat glass.

“In addition, we are the world’s eighth-largest soda producer and the global leader in chromium chemicals. Currently, we are operating 10 production facilities in four countries in the field of glass packaging, where this new investment is planned.”

After indicating that Şişecam is already a strong player thanks to its current 2.6-million-tonnes annual glass packaging production capacity across Turkey, Russia, Ukraine, and Georgia, Prof. Dr. Ahmet Kırman further stated, “In June this year, we decided to establish a new green-field facility with a 330,000 ton annual production capacity in Hungary. As a result, Şişecam took a significant step toward bolstering its presence in the European market in glass packaging. With this Hungarian investment, we added glass packaging to our production footprint in Europe.

“Our global glass packaging production capacity was already set to exceed 3 million tonnes thanks to the greenfield investment in Hungary that will be launched in 2023 and reach full capacity by 2025. Following the latest investment planned at the Eskişehir production facility in Turkey, Şişecam’s glass packaging capacity is now set to climb to 3.2 million tonnes annually. Our expanding production capacity will enable Şişecam to respond to rising demand for glass packaging, which has grown in parallel with heightened awareness of health and hygiene during the pandemic.”

Prof. Dr. Kırman also indicated that Şişecam is enjoying continuous growth in line with its high performance-based investment policy. Şişecam’s ultimate objective is to become one of the three largest manufacturers in the world in its core business areas.

Prof. Dr. Kırman elaborated further, “The glass packaging market in Turkey holds great potential thanks to its high growth rate in comparison to the global average. Turkey’s glass packaging consumption per capita has not yet reached saturation. Annual glass packaging consumption in Western Europe averages around 45 kilograms per capita, in Turkey, this figure is about 18 kilograms at present. This key indicator reveals the growth potential of the glass packaging market in Turkey.”

Prof. Ahmet Kırman stated that the size of the Turkish glass packaging market largely remained intact in 2020 despite the adverse effects of the pandemic. The domestic glass packaging market went on to trend positively in the second half of 2021 with the easing of Covid-19 restrictions, the opening of the HORECA channel to a great extent, and the positive effect of rebounding tourism. He continued: “Rapid market growth is projected for 2021. The expectation that Chinese manufacturers will lose their stronghold in the US market, ongoing growth of the European market, and the fact that Şişecam is one of the highly-preferred suppliers in Europe are all indicators that our export potential is even higher.”

Prof. Dr. Ahmet Kırman concluded, “In addition to being a strategic glass packaging production base, Eskişehir stood out as the right location for our new investment due to its market access potential. The new investment will enable Şişecam to quickly respond to domestic market demand, while also offering advantages in terms of evaluating additional sales demand that may arise outside of Turkey.

“We anticipate that the new furnace, which is planned to be commissioned in the first quarter of 2023, will provide input to many sectors, particularly beverage and food packaging.”

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