After several years of growth of around 2 percent per year in volume up to 2020, the European glass packaging sector went through successive phases of slowdown during Covid-19, followed by a post-pandemic rebound, before experiencing a sharp contraction in 2023 (-13 percent in volumes), marking a return to a structurally lower level, below that of 2019.
This decline in volumes is the result of weaker demand linked to reduced alcohol consumption in Europe (-4 percent since 2019), combined with increased pressure on certain export flows for customers, particularly to the United States and Asia.
In this context, and considering a portfolio largely exposed to alcoholic beverages, a strategic review was carried out to adjust production capacity in Europe, in order to adapt Verallia’s industrial footprint to new market dynamics and thereby sustainably strengthen its competitiveness.
- Germany
Demand in Germany, Belgium and the Netherlands remains subdued, with no clear prospect of a significant recovery in the medium term.In this context, the review of the industrial footprint highlighted that refocusing production on three sites, supported by targeted investments to modernise more energy-efficient furnaces, would offer the most suitable configuration in this new environment.
Against this backdrop, the Essen site has undergone a specific review, which could involve transferring volumes to Bad Wurzach, Neuburg and Wirges. This project could potentially lead to the closure of the site and the termination of around 300 positions.
- France
In France, the market is facing a structural decline in cognac sales, with no prospect of recovery in the medium term. Since 2023, Verallia has adapted to this new context through prolonged furnace shutdowns and partial activity measures.The Group is now considering a more structural adjustment to its production capacity, involving the shutdown of a furnace at the end of its life on the Châteaubernard site.
This project would affect around 60 positions and would rely exclusively on voluntary departures, supported by an autonomous voluntarily departure plan, combined with a pre-retirement scheme and dedicated support measures.
- United Kingdom
In the United Kingdom, the market is in decline, particularly in the spirits sector, which has historically been a key market for Verallia. In this context, an adjustment of the industrial footprint is being considered, involving the closure of an end-of-life furnace in Knottingley and the restart of a more efficient furnace in Leeds.Options to redeploy employees between the two nearby sites are being explored.
As part of these projects, Verallia Group and its local teams intend to place social dialogue at the heart of their approach, working closely with employee representatives and unions, and to support all affected employees with the utmost care.