Glass packaging production volumes in Europe grew by 1.9% in the first half 2012 according to data published 12th December by the European Container Glass Federation (FEVE). The growth is in response to the increasing demand on the domestic & outside EU markets. This builds on the positive trend recorded in 2011. Despite the unstable economic & financial crisis that negatively affects the whole EU manufacturing sector, these records shed a positive light on the stability & future prosperity of the EU container glass sector. In the first six months, the industry produced 10.9M/t of glass compared to 10.7M/t in the first half 2011. The increase was striking in countries such as Portugal (13%), Poland (7%) as well as in the North & Central Europe (6.2%) & South & East Europe (5.1%). Other EU countries: UK (2.9%), Germany (1.4%) & Spain (1%) kept the steady trend of previous years while other countries recorded a slow-down after strong growth in 2011. Turkey confirms a dazzling trend (8.3%). Despite encouraging results, the impact of the long-winded financial crisis on the industry continues to weigh heavily on the competitiveness of the EU industry. Increasing energy prices, unilateral CO2 costs, fluctuating & unfavourable exchange rates, & high labour costs hamper the cost competitiveness at global level of the container glass sector. Combined, these challenges delay long-term investment decisions & rather become incentives for delocalisation of production sites & R&D investments outside EU to more industry friendly environments with lower costs. The EU manufacturing sector, including the container glass industry, continues to be the main driver of productivity growth in the EU. According to the EC, Europe accounts for about 30% of global consumption & the EU industry is clearly the most important sector for EU international trade accounting for over 90% of overall exports of goods. "We strongly support the policy strategy of the EC, focusing on the manufacturing industry as powerhouse of the EU economy," comments Stefan Jaenecke, President of FEVE. "The container glass industry is making major efforts to adapt & innovate itself while continuing to meet market demand for a high quality & highly competitive packaging solution. These efforts, however, need to be supported by a legislative & economic framework that encourages the industry to look beyond short term results & fix long-term & sustainably sound objectives."
