Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict
France-based glass container manufacturer Verallia has suspended production at its facility in Zorya, Ukraine, amid Russia’s invasion of the country.
Go deeper with GlobalData
Located in the country’s western region, the site supplies half of its output to domestic customers and exports the rest across Europe.
Last year, the site reported a turnover of approximately €50m ($56m).
Verallia said that it plans to maintain two ovens at the facility at temperature during the temporary suspension period.
The firm may also halt production at the site completely if the situation in Ukraine worsens.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataVerallia stated that it had taken the decision after closely monitoring the situation for the past week.
The company said it has aimed to prioritise the security of its employees and preserve the investment so that the plant can be restarted at a later point.
Verallia Deutschland general manager Dirk Bissel said: “We have, for the time being, decided to stop production – in accordance with our crisis plans – in an orderly and controlled manner in order to protect our employees.
“Thanks to our organisation over the past few months, the situation on the site is proceeding in an organised manner and without major risk.”
Verallia manufactures glass packaging for beverages and food products, operating a network of 32 glass plants in 11 countries.
Last month, the company announced plans to invest €65m at its production facility in Chalon-sur-Saone, France.
Of the total investment, around €60m will be used to equip the facility with three furnaces and replace its existing furnaces.
The remaining €5m will be invested to increase the facility’s production capacity and reduce its environmental footprint.
The Chalon-sur-Saone facility is the largest of Verallia’s plants and can produce one billion bottles a year.
The company’s investment in the plant is part of a strategy to modernise its production capabilities in the interest of long-term growth.
