Verallia Initiates Strategic Review of Its European Industrial Footprint
Verallia Group has launched a strategic review of its European sites aimed at adapting its production facilities to changes in demand. Several projects for site closures and furnace shutdowns are being considered in Germany, France, and the United Kingdom.
Strategic Review in a Slowing Sector
The strategic review is set against the backdrop of a sustained slowdown in the glass packaging sector in Europe. After about two decades of moderate growth, the sector experienced a significant decline in 2023, returning to a structurally lower level than before the pandemic. This decrease is attributed to less dynamic demand linked to reduced alcohol consumption in Europe and increased tensions in certain export flows, particularly to the United States and Asia. Verallia, whose portfolio is predominantly exposed to alcoholic beverages, conducted this review to adjust its production capacities and sustainably strengthen its competitiveness.
Site Adjustments Across Germany, France, and the UK
In Germany, due to persistently low demand in Germany, Belgium, and the Netherlands, Verallia is considering closing the Essen site and focusing production on three sites (Bad Wurzach, Neuburg, and Wirges) supported by modernization investments. In France, the group plans to shut down an end-of-life furnace at the Châteaubernard site, in a context of structural decline in cognac sales. In the United Kingdom, the shutdown of an end-of-life furnace at Knottingley and the restart of a more efficient furnace at Leeds are being considered. These projects are part of a strategy for sustainable performance and environmental considerations supported by a disciplined investment policy. The group commits to placing social dialogue at the heart of its approach, in close consultation with social partners.
