It claims the site is no longer profitable due to overcapacity in the glass market, relatively high production costs and outdated furnaces.
'Long-term needs'
Some of the employees at the site will be offered transfers to O-I’s other sites in The Netherlands, at Leerdam and Maastricht.
Vitaliano Torno, president, O-I Europe, told BeverageDaily, the decision to close the Schiedam plant is part of plans to ‘strengthen its competitiveness in Europe’, moving production from that site to other O-I plants which better address the long-term needs of its customers.
He said O-I’s European Leadership team informed the European works council and employee representatives about its plan to significantly enhance its competitiveness in Europe last month.
“In 2017, O-I will invest €155m ($165m) in its European facilities to strengthen competitiveness and modernize production and ensure the stable, agile network its customers require,” he added.
“The planned investments include the continued modernization of assets in Italy, France, Germany, UK, the Czech Republic and Poland across all of the company’s business segments.
Premium Program
“O-I will also implement a Premium Program initially focused on France and on the Alloa plant in Scotland mainly dedicated to the Champagne, Wine and Spirits growing premium segments to develop customer cooperation, value creation, quality and production flexibility.
“This planned closure is subject to consultation with employee representatives.”
O-I had revenues of $6.2bn in 2015 and employs 27,000 people across 80 plants in 23 countries. Its global headquarters is based in Perrysburg, Ohio, US.