Vetropack is a major player as a manufacturer of glass packaging: used glass is melted down and processed into new bottles and jars, into which beer, mineral water, milk, jam, etc. are later filled. But the decline in consumption forces the company to reduce production capacity. This causes vibrations – also in Kremsmünster.
“We can already see that 2024 will follow on seamlessly from the weak second half of the previous year; we will focus on cost savings; Already planned investments in our factories will be postponed as much as possible” – this is all stated in the letter from the Board of Directors, which was published on the Vetropack website.
The extent to which the glass packaging manufacturer is under pressure is evident from the fact that Vetropack is not only considering closing its main factory in Switzerland, but is also considering reducing production in Kremsmünster.
Currently more bottles etc. are produced than necessary
The reason is a decline in demand for green and colored glass, which in turn is caused by inflation and general uncertainty, putting pressure on people’s willingness to consume. That is why beverage and food manufacturers need less glass packaging. The result: Significantly more bottles etc. are produced than necessary.
323 employees at the Kremsmünster factory
What exactly is being considered in Kremsmünster? The temporary closure of one of the three melting tanks, specifically the one marked F32. “Accordingly, job losses are also being discussed,” says the company, which has a total of 323 employees at its Upper Austria location.
The employees were informed about the difficult situation and the possible consequences. The extent to which there will be staff reductions is currently being determined. “We want to avoid layoffs wherever possible,” they say. Over the past year, Vetropack had repeatedly adjusted capacities across the group, resulting in hundreds of days of production line downtime.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
