Şişecam Will Establish Its First Glass Packaging Plant in Europe with 2 Furnaces in Hungary
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As a global player in glass and chemicals with production in 14 countries on four continents and sales operations in more than 150 countries, Şişecam continues its investments in line with its vision of being one of the top three players in its core business areas. Şişecam, the only global company operating in all key areas of glass manufacturing, selected Kaposvár, Hungary for its first European production plant in glass packaging. Şişecam’s greenfield glass packaging project with two furnaces and 220 million EUR investment will have an annual net production capacity of 330,000 tons. The Hungarian facility is planned to be commissioned in 2023 and reach full production capacity in 2025.
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Şişecam Chairman and CEO Prof. Dr. Ahmet Kırman stated that Şişecam continues to move forward with its investments in line with its growth strategy even in the uncertain environment of the pandemic to maintain sustainable value creation: “Europe accounts for a quarter of the global glass packaging market in volume and it holds great potential for further growth for the industry as well as provides opportunities for the holistic expansion of our company’s current production footprint. With its strategic position in Central Europe, Hungary offers attractive opportunities and advantages to support our growth in the European glass packaging market. Our first glass packaging production facility in Europe will meet the expanding demand for glass packaging both in Hungary and across Europe “
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09.06.2021 – As a global player in all core areas of glass manufacturing including flat glass, glassware, glass packaging, and glass fiber, as well as business lines covering soda and chromium compounds, Şişecam will establish its first glass packaging facility in Europe with two furnaces in Kaposvár, Hungary. The greenfield glass packaging facility with an investment of 220 million EUR, will have an annual net production capacity of 330,000 tons, and is expected to start its operations in 2023 and will reach full capacity by 2025. Şişecam’s total employment in Hungary will rise to 553 with the introduction of glass packaging investment.
Prof. Dr. Kırman: “The European market offers growth opportunities.”
Şişecam Chairman and CEO Prof. Dr. Ahmet Kırman delivered a statement regarding the new investment. He emphasized that Şişecam continues to move ahead with its investment plans towards the aim of becoming one of the top three producers in the world in its core business areas. Prof. Dr. Kırman continued: “With our recent soda investment in the U.S., today we operate in 14 countries on four continents with 22,000 employees, introducing innovative products to our customers in more than 150 countries worldwide. We are the world’s second-largest glassware manufacturer. We rank fifth globally in the production of glass packaging and flat glass. In addition, we are the world’s eighth-largest soda producer and the global leader in chromium chemicals. With our new investment in the U.S, Şişecam will become the fifth largest soda producer globally.”
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Prof. Dr. Ahmet Kırman stated that Şişecam has taken many groundbreaking steps in the glass packaging sector, as in all its business segments. He elaborated on Şişecam’s activities in glass packaging: “Şişecam operates in the glass packaging industry with 10 production facilities located in four countries and holds market leadership in Turkey, Russia and Georgia. Our total annual production capacity in glass packaging is 2.6 million tons. A sizeable portion of our international sales in glass packaging is directed to European glass packaging market. Increased awareness of health and hygiene during the pandemic accelerated the demand for glass packaging globally. As a result, Europe offers great potential for further growth of the industry as well as providing ground for the holistic expansion of our company’s current production footprint. When we set out to capitalize on these opportunities, we decided to invest in Hungary.”
“We are expanding our footprint in Europe in the glass packaging market.”
Prof. Dr. Ahmet Kırman pointed out that Şişecam first started operating in Hungary in 2013 through an acquisition: “We have operated in Hungary for eight years with our encapsulated glass facility. Şişecam is a strong player and has had a positive track record in this market. With its strategic position in Central Europe and investment and trade friendly environment, Hungary offers attractive opportunities and advantages to support our growth in the European glass packaging market – a total volume of about 20 million tons per year. We plan for our first glass packaging facility investment in Europe to start its operations in 2023 and reach full capacity by 2025. The facility will have a net production capacity of 330,000 tons when completed and will respond to the expanding demand for glass packaging both in Hungary and across Europe. Şişecam will expand its footprint in Europe in the glass packaging market, while also significantly contributing to Hungary’s exports. The facility will feature two furnaces and we plan to commission the first furnace in 2023. With its high-quality and high value-added glass packaging products, Şişecam will provide inputs to many different sectors, including the food, alcoholic, and non-alcoholic beverage segments. After commissioning the facility, which will employ 329 people, Şişecam’s total employment in Hungary will rise to 553.”
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Şişecam’s sustainability approach “Care for Next” supports the United Nations Sustainable Development Goals and encompasses the entire value chain, from raw materials to end users. Prof. Dr. Ahmet Kırman stated that Şişecam carries out all its activities in accordance with its sustainability strategy: “In line with our sustainability approach, we have taken furnace efficiency, carbon footprint, recycling, and circular economy at the core of our operations while planning our glass packaging investment in Hungary. The facility will rely on the most advanced applications of glass melting technology. Electrical melting technology will also be used to minimize the carbon footprint of the project. The facility will be technologically advanced with industry 4.0 applications and the entire operation will be carried out with the perspective of resource efficiency and natural resources protection.”