Verallia is evaluating major adjustments across its European industrial network, with plans that could impact up to 360 jobs, as the group responds to continued weakness in demand for glass packaging.

The company has initiated a strategic review aimed at aligning production capacity with changing market conditions. As part of this process, several measures are being examined, including the possible closure of the Essen site in Germany, the shutdown of an ageing furnace in Châteaubernard, France, and operational changes in the United Kingdom involving facilities in Knottingley and Leeds.

Verallia stated that discussions will be carried out in cooperation with employee representatives and labour unions, with support measures planned for affected workers.

Germany: Potential Site Closure

Demand across Germany, Belgium and the Netherlands remains subdued, with no clear signs of a medium-term recovery. Under the proposed restructuring, production would be consolidated into three sites, Bad Wurzach, Neuburg and Wirges, supported by investments focused on modern, energy-efficient furnaces.

As a result, the Essen plant has undergone a dedicated review that could lead to the transfer of production volumes and the loss of approximately 300 positions if closure moves forward.

France: Structural Adjustment

In France, the company highlights a structural downturn in the cognac market, which has significantly affected demand. Since 2023, Verallia has already implemented temporary furnace shutdowns and reduced activity measures.

The latest proposal involves permanently shutting down a furnace at the Châteaubernard site once it reaches end of life. Around 60 roles would be affected, with the company indicating that adjustments would rely on voluntary departure schemes, early retirement options and targeted support programs.

United Kingdom: Operational Realignment

In the UK, where the spirits segment has historically represented a key market, demand has also softened. Verallia is considering closing an ageing furnace in Knottingley while restarting a more efficient unit at nearby Leeds, with possibilities for employee redeployment being assessed.

The European glass packaging industry has faced growing pressure in recent years. After steady growth averaging around 2% annually up to 2020, the sector experienced pandemic-related disruptions followed by a temporary rebound, before entering a sharp decline in 2023, with volumes falling approximately 13%.

Lower alcohol consumption across Europe and reduced export demand to markets such as the United States and Asia have further contributed to the slowdown. With a portfolio strongly tied to alcoholic beverage packaging, Verallia’s strategic review aims to adapt its footprint to the new market reality while strengthening long-term competitiveness.