IHS soda ash conference in Lisboncdn.ihs.com/www/pdf/IHS-WSA-Rivet-Sept16.pdf · IHS soda ash...
Transcript of IHS soda ash conference in Lisboncdn.ihs.com/www/pdf/IHS-WSA-Rivet-Sept16.pdf · IHS soda ash...
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IHS soda ash conference in Lisbon
21-22nd September
Fabrice Rivet
Technical Director
FEVE – The European Container Glass Industry
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Outline
• About FEVE and the container glass industry
• The present: How is our industry doing?
• The future: what are the trends?
– Market trends
– Legislative trends
• How can these trends impact the soda ash industry?
• Conclusions
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About FEVE and the container glass industry
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The European Container Glass Federation (FEVE)
Represents the European glass container manufacturing industry (food and drinks, pharmaceuticals, perfumery, cosmetics and glass tableware) Maintains a dialogue with the European institutions, and any stakeholders at European level. Promotes glass packaging and glass recycling, complementing the activities of the glass industry at national level. www.friendsofglass.com
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O-I Europe Pochet Group
Bormioli Luigi
Santo Barosa
Pasabahce
Zignago Vetro
Heinz Glas
Verallia Group
Saverglass Group
Stölzle Glass Group
Vetropack Group
Beatson Clark
Vidrala Group
Libbey Europe
Vetreria Etrusca
Yioula Group
Neue Glaswerke Grossbreitenbach GmbH & Co. KG
Allied Glass Anadolu Cam Sanayii A.Ş.
SGD Group Durobor
Gerresheimer Group
Bormioli Rocco Group
Ardagh Group
BA - Vidro
Zwiesel Kristallglas
Members
Encirc
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[1] Glass Alliance Europe statistical report 2014/2015 (May 2015)
Share of container glass in the total EU glass production
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The European glass packaging plants
40,000 workers
More than 160 local
manufacturing
plants (incl. glass
tableware) in 20
countries
Nearly 70% of the
total EU glass
production
Over 70% glass
collected for
recycling
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Glass Recycling
• Glass can be indefinitely recycled without loss of properties
• Recycling ≠ downcycling. Glass forms a real closed loop (from bottle to bottle)
• 1 kg of cullet saves 1.2 kg of raw materials
– Today, soda ash represents about 13% of the batch in terms of weight
• Every 10% cullet increase in the batch saves ~ 2.5 to 3% of energy and ~ 4 to 5% CO2 in the furnace
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The present: How is our industry doing?
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More than 22 Million Tons produced in Europe (EU28, CH, TR) +2,2% growth Source: FEVE – Year 2014
Container Glass Production (Food and Drink, Flaconnage)
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Glass strong points • Glass remains a premium packaging material across
all consumer spaces, from fast-moving consumer goods to luxury beverages.
• It constitutes an excellent barrier to contamination, and it offers low transmission of oxygen and water vapour
• Glass is highly inert – doesn’t leach into nor react with the food/beverage it contains
• It is the only packaging with no plastic layer
• Glass is highly recyclable and recycled (with no loss of properties)
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Social footprint
About 125 000 local jobs generated
More than € 9.4 billion of Gross Value Added (GVA) generated
Economic footprint Environmental footprint
Sustainability: the triple bottom line – EU27 (Ernst & Young study)
of the container glass produced is made with raw materials that travel less than 300km before their delivery to the glass manufacturing plant of the container glass is delivered to customers that are located less than 300 kms from the glass manufacturing plant
About 74%
About 56%
Induced jobs Indirect jobs Direct jobs
Induced GVA Indirect GVA Direct GVA
€ 0.75 – 1 billion / year of contribution to public finances
500 - 610 M€ / year of industrial investments on average
More than 12.5 Mt of cullet incorporated in the glass furnaces
52% Cullet incorporation rate in 2012
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A big regional contribution to EU trade
• Container glass industry contributes indirectly to a positive EU trade balance of more than 21€ billion per year due to the export of products which rely primarily on glass for their
packaging.
13
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Innovation: crucial to compete
Fluo glass. "Clear by day, fluorescent
blue by night. Under black light,
transparent bottles light up to add a
touch of magic and originality to jet-set
nights out.
VersaFlow carafe, an innovative packaging
concept for the food industry. The VersaFlow
carafe has a unique pouring spout that allows
consumers to pour liquids in a cleaner, more
precise and aesthetic way.
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The future: what are the trends? Market trends
Legislative trends
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Market Trends
• Brands in beer and wine continue to use glass as a brand differentiator – Top sectors: Beer, wine, spirits doing well
– Craft beers/micro breweries – 694 in 2009 to 1414 in 2014!
– Sparkling wine ‘the hottest category in the world’
– Renaissance in gin and whiskey
• Glass inertness still strongly valued for pharma and perfumes
• Consumers trends: – Personalisation and consumer experience
– Health and well-being
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Absolut Unique Campaign
Personalised
Mattias Elg, a Quality Management Professor from the Linköping University in Sweden, figured out that ABSOLUT could create 94 quintillion bottles before two similar ones would appear.
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New food &
non alcoholic
sectors
Millennials
opting for
healthy,
sustainable,
local & unique
products
Health and well-being
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The future: what are the trends? Market trends
Legislative trends
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Legislative Trends: the circular economy package
• Officially published by the Commission on the 2nd of December
• Co-decision between Council and Parliament started
• The package comprises (available here: http://europa.eu/rapid/press-release_IP-15-6203_en.htm): – A review of some EU waste directives:
• the Waste Framework Directive
• the Packaging and Packaging Waste Directive
• the Landfill Directive
• the batteries directives
• An action plan which needs to be developed in the coming years
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The circular
economy
package is
a real
opportunity
for glass, for
which a real
closed
economy
exists since
decades
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Legislative Trends: Low carbon economy roadmap
0%
20%
40%
60%
80%
100%
1990 2000 2010 2020 2030 2040 2050
0%
20%
40%
60%
80%
100%
Current policy
Power Sector
Residential & Tertiary
Non CO2 Other Sectors
Industry
Transport
Non CO2 Agriculture
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Energy for glass production: there is a thermodynamic limit…
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How can these trends impact the soda ash
industry?
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Factors influencing soda ash demand by container glass
• Glass recycling
• Returnable (reusable) glass bottles
• Competition with other packaging materials
• Lightweighting
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Soda ash use in the container glass industry: 2009 vs 2012
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Impact on the soda ash producers?
• Today – External cullet (=recycled glass) content is 52%
– Our members have difficulties to find cullet on the market (quality and quantity)
– Natural soda ash use tends to increase
– The ratio between the two types is:
• Synthetic soda ash: 75%
• Natural soda ash: 25%
• Tomorrow: – Increase cullet consumption thanks to « Circular economy »
– Returnable bottles pushed by some stakeholders
– Natural soda ash is gaining momentum (less CO2 intensive than synthetic soda ash)
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Conclusions
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Conclusions
• The industry is doing well despite the economic context and remains a solid industry with good customer prospects
• Competition from alternative materials is real (e.g. bag-in-box for wine)…
• …but new circular economy, focus on health and safety of food contact materials are opportunities
• Decarbonisation will be a challenge for all industries and could mean big changes in the way glass is produced
• Soda ash use in the container glass industry is decreasing due to higher recycling but remains a key raw material for our production
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www.feve.org
@feveeu
For information: FEVE – The European Container Glass Federation Avenue Louise 89, Box 4 B – 1050 Brussels [email protected] +32 2 536 00 80