Container glass manufacturer, Verallia, confirms plans to commission a glass furnace in Campo Bom, Brazil, in Q3 of this year, alongside the initiation of a new furnace at its Pescia, Italy facility in Q2 2025.
Verallia, a prominent container glass manufacturer, is set to move forward with the commissioning of a glass furnace in Campo Bom, Brazil, later this year. The company has affirmed that the furnace, currently under construction, is on track to commence operations in the third quarter of this year. Simultaneously, a new furnace in Verallia’s Pescia, Italy facility is scheduled to start production in the second quarter of 2025. The France-headquartered glass packaging group emphasizes its commitment to monitoring demand trends to confirm the specified start-up dates. However, planned capacity additions in Montblanc, Spain, for the next year and Italy in 2026, have been postponed beyond 2026. Verallia states that pre-engineering studies are underway, and construction investment will commence once demand sufficiently recovers.
Verallia’s CEO, Patrice Lucas, provides insights into ongoing projects, stating that work is progressing to initiate the first electric furnace in Cognac, France, and the first hybrid furnace in Zaragoza, Spain, within this year. The Cognac furnace is anticipated to reduce CO2 emissions by 60%, while the hybrid technology in Zaragoza aims to lower emissions by 50%, both compared to traditional furnaces.
In its financial report for 2023, Verallia announced a significant 16.5% increase in revenue, reaching €3,904 million compared to 2022. The company acknowledges a decline in demand in Europe since summer 2023, attributed to reduced end demand and large-scale inventory clearance across the downstream value chain. The beer segment experienced the most significant impact, with still wine volumes also declining, while the spirits segment faced deterioration in the second half of the year. Despite these challenges, sales of food jars, bottles for non-alcoholic beverages, and sparkling wines remained resilient, with Champagne and Prosecco volumes holding up well.
In Latin America, Verallia reported a 5.5% revenue decrease, contrasting with the robust growth of 65.8% in the previous year. The figures were notably influenced by activity in Argentina, experiencing vigorous organic growth but facing a deeply negative foreign exchange effect linked to the devaluation of the peso.
During 2023, Verallia completed the acquisition of five cullet plants from Spain’s Santaolalla Group. This strategic investment aligns with Verallia’s goal of maximizing cullet use in its production process and progressing towards its CO2 reduction target, aiming for a 46% reduction in emissions by 2030 compared to 2019.
Source: GlassBalkan
