Vetropack Group, one of Europe’s leading glass packaging manufacturers, has announced that it is postponing the heat-up of the new melting furnace at its Czech site in Kyjov until early 2024. With this postponement of a few months, Vetropack is reacting to the changed situation in the European market for glass packaging.
“Following a thorough analysis of the current market development, we have come to the conclusion that postponing the heat-up of the furnace is the right decision at this time,” explained Johann Reiter, CEO of the Vetropack Group. The decision is rooted in the changed consumer behaviour as a result of inflation: demand for glass packaging in Central Europe has decreased. Hence, less production capacity is currently required than was expected at the beginning of the year.
“As a financially sound company, we monitor the development of the market very closely to be able to react promptly to any changes – which is what we are doing right now,” said Johann Reiter. “The active management of our production and storage capacities is part of our market strategy and ensures that we can continue to make decisions from a position of strength.”
The postponement does not change the long-term plans for the development of the site in Kyjov, which recently celebrated its 140th anniversary. The overhaul of the furnace is running successfully and will be completed within the planned time frame. The two state-of-the-art NIS machines for particularly precise and efficient control of the glass forming process will also be commissioned in early 2024.
“We see the current market situation as temporary,” Johann Reiter emphasised. “Therefore, the goal is to successfully complete all current projects by 2024 so that we can hit the ground running when market demand picks up again.”