Vetropack Group has announced that it will start a consultation process on the future of its Swiss production site in Saint-Prex, Vaud.
More than a century old, the Saint-Prex production site has been the subject of numerous changes and substantial investment over the decades, more than CHF 50 million since 2010 alone. But despite these efforts, the site – the Group’s only one in Switzerland – is suffering from its small size, the constraints of its location in the heart of a densely urbanised area, and its lacking competitiveness in a market that has become increasingly difficult. Its profitability is no longer guaranteed.
These are issues that have been of concern to the Group’s management for several years. A decision on the future of the site is necessary now, as the site’s current melting furnace is due to be replaced because of its age. This would require an invest of at least CHF 30 million – which is economically not feasible under the current conditions.
In view of these developments, Vetropack’s Management Board and Board of Directors have undertaken in-depth analyses of the situation. This has now led to the opening of a consultation process, which could result in the closure of the production site if no other viable alternative can be found.
The position of the Board of Directors and Group Management is based on a comprehensive assessment of production, including an examination of the optimisation potential.
Vetropack still generates around 40 percent of its sales to Swiss customers with glass packaging from Saint-Prex. In the case of a closure, these customers would be supplied by other Vetropack plants in neighbouring countries – particularly Austria and Italy.
A closure of the plant, which could take place in the second half of 2024 based on the current situation, would also mean the loss of the majority of the around 180 jobs.
In accordance with the legal requirements for consultation processes, employees will be given the opportunity in the coming weeks to comment on the situation and eventually submit alternative proposals. These will be thoroughly examined and evaluated by the Board of Directors before a final decision is made.