A spokesperson for Encirc explained that the wider industry is grappling with a combination of high operating costs, tightening legislation and pressure from low-cost imports.
The spokesperson commented: “While we are well placed in our sector, the glass industry continues to navigate some very challenging UK market conditions.
“The packaging tax known as ‘Extended Producer Responsibility’, the influx of unsustainable low-cost imports and high energy costs are key factors contributing to this.”
Although it has been suggested that the restructuring could include redundancies, the company has not confirmed this.
Encirc continues discussions with government
Encirc, part of the Spanish-based Vidrala Group, operates across three sites in Derrylin, Northern Ireland, and two England sites in Cheshire and Bristol.
The business employs almost 2,000 people and produces more than three billion glass containers annually for global brands.
Alongside manufacturing, Encirc is a major filler in the UK drinks sector, holding around 40% of the national wine, beer and spirits bottling market and managing 18 of the UK’s top 20 wine brands.
According to the company, discussions with government are ongoing.
The spokesperson added: “While we are working closely with the Government to address all these issues and are making encouraging progress, we are undertaking a restructuring programme to help ensure we can meet the current challenges.
“We will run a thorough consultation process with all employees impacted, as well as trade union and employee representatives.”
UK glass market
Encirc’s restructuring comes during a period of continued strain in the UK glass industry.
The glass sector has seen a relatively stable month despite these ongoing strenuous conditions. The glass PRN has seen significant increases, with the remelt PRN way up. Some have chosen to hold their prices while others have seen minor increases or decreased, resulting in a very “mixed bag” month.
UK legislation such as Extended Producer Responsibility for packaging (pEPR) and the forthcoming deposit return scheme (DRS) continue to have an effect on prices.
The UK also continues to see the import of cheap virgin cullet cause low demand for recycled glass.
Find out more about the November glass market in our market report.
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