Owens of Illinois (O-I) Recycling currently operate 166 furnaces in 22 countries and O-I announced in September at the Bank of America Investment Conference that in 2008 there would be “capacity reduction for 10 furnaces” and that there was the “potential of a further 10-15 in connection with the previously announced footprint assessment” undertaken by the company.
One glass industry expert told letsrecycle.com that he would not be surprised by furnace closures. “There is a need for investment and there are big cost pressures hitting the glass manufacturing sector hard.”
Much of O-I's work in the UK is understood to be carried out at its Scotland plant at Alloa, supplying clear bottles for the whisky industry, and a large portion of the company's UK investment has been there. Harlow has had investment but is thought to be a possibility for some furnace closure because of the ongoing pressure of production costs and the continuing need to invest.
Today O-I told letsrecycle.com that any changes at Harlow would not impact on the volumes of recycled glass collected for the company.
An O-I spokesman has told letsrecycle.com: “There are no recycling implications and there are no planned permanent closures. There have been temporary shutdowns.”
In April, O-I released a statement that said: “O-I has informed the trade unions and the employees of the plant at Harlow on the need to adjust the manufacturing capacity for 2008 in line with actual and expected local demand.
“Accordingly it is proposed that one of the 3 existing furnaces will be stopped (Furnace 103). O-I's strategy remains to be actively serving the needs of its customers in a competitive, but profitable way, by delivering high service level and quality.”
The statement also outlined that the move to “adapt its capacity”, which took effect at the end of July, would affect 45 employees at the Harlow faclity.
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