FEVE say that while glass may be regarded as an “old-fashioned” industry continues to attract major investment, offers unique recycling opportunities and is very resilient in terms of supply and demand. Europe’s glass industry continues to be a strong market for industrial minerals, including silica sand and soda ash, particularly in container glass, as the latest figures from the FEVE show.
The European Union’s (EU) glass container industry contributes €9.5bn ($10.6bn*) annually to EU gross domestic product (GDP), according to an Ernst & Young study commissioned by FEVE.Although the raw materials used in glass, which include silica sand, carbonates, quartz and soda ash, are easily available to European manufacturers, Feve believes that the supply concentration of these minerals could pose a risk for downstream consumers.
The industry invests up to €610m per year to innovate and maintain a network for 155 container glass plants across the EU, equaling 10% of the industry’s operational costs every year.
"For sand and soda ash in Europe we have a situation which is close to a monopoly," Fabrice Rivet, FEVE’s technical director, told IM.
"We have Solvay for soda ash and we have Sibelco for sand and so this maybe a challenge for the glass industry, it is not a pure monopoly but it is close," Rivet added.
Resilience in end markets
finding buyers in the alcohol and perfume industry.
"We have seen a slight decrease in production, especially in 2009, [when it] decreased by about 4%," Michael Delle Selve, FEVE’s senior communications manager, told IM.
Delle Selve said that compared to flat glass and fibreglass, which are primarily used in construction, container glass can largely maintain its appeal despite competition from plastics, metal cans and Tetra Pak in the packaging sector.
"So we can say that we are quite resilient and, okay, we are not growing at a high pace but let’s say that with the crisis, there was an effect but it was acceptable," Delle Selve said.
Delle Selve feels that one of the main challenges the glass industry faces is its "old-fashioned" image, which he believes is in need of renewal.
Challenges
Delle Selve says that the glass container industry wants to work in a "friendly framework" in the EU.
"One of the main challenges is to keep this circular economy competitive and that is where we also need the support from policy-makers, we need their help in decreasing the cost of energy, the legislative burden for said industries," Delle Selve said.
"We see more and more [legislation on] energy consumption, carbon dioxide (CO₂) emissions," Rivet told IM.
"That adds an additional burden in terms of cost to our members and that is really very difficult to cope."
FEVE says that it is looking at ways to reduce its CO₂ footprint, by using biomass as an energy source in processing as opposed to fossil fuels and producing lightweight bottles to reduce energy usage.
Recycling
FEVE celebrates the fact that container glass’ reusability allow it to function within a circular economy.
According to Ernst & Young’s study, seven out of every ten bottles gets recycled in the EU, meaning one tonne of recycled glass saves 1.2 tonnes of virgin raw materials and cuts CO2 emissions by 60%.
"So the future for us is to put into the loop the remaining 30% in the bottle-to-bottle loop because we actually want to recycle more glass," says Delle Selve.
"But again we need the support of other actors because the bottle-to-bottle loop does not just involve the glass industry but also consumers, the local authorities, the collection organisations, it is really a loop."
FEVE argue that this and the fact glass is the most inert packaging material according to science, appeals to consumer’s desire for safe and reliable materials.
*Conversion made January 2015
Originally published at: http://www.indmin.com/Article/3420703/95bn-EU-glass-industry-still-robust-market-for-industrial-minerals.html
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