GW: Since our exclusive interview in summer 2021, what have been the key developments in the proposed construction of the greenfield plant in Ebbw Vale, Wales?
In the last year, we have engaged in three consultations with local Blaenau Gwent residents to gather their feedback on our planning application proposal and provide answers on the key matters raised. All the questions/concerns were answered during the consultation process.
The planning application was unanimously approved by councillors at the council planning meeting on June 16 and hailed as a “great day” for the town. We are extremely pleased to have received approval to move forward with our exciting plans to build and operate our new glass bottle manufacturing facility in Ebbw Vale. This is the first step towards building a world-class facility in the heart of South Wales, and we cannot wait to begin working on making our vision for Blaenau Gwent a reality.
Discussions with local stakeholders will now move forward in earnest as proposals for the facility progress over the coming months. We have identified the main supply chain opportunities and plan to place contracts with local companies wherever possible.
GW: How significant was it to receive a unanimous agreement in June from Blaenau Gwent County Borough Council (BGCBC) for a resolution to grant planning permission?
It is an extremely significant achievement as it reflects the unwavering support for our glass manufacturing project to be a success for the area. We think it also emphasises the strong relations we have built up with local stakeholders in the area who believe in our vision and want to work with us to make our plans a reality.
GW: Following the resolution, what are the next steps and timetable for the project?
Discussions with local stakeholders will begin to move forward following the summer period. We will finalise the detailed design of the facilities by the end of this year. With this respect, we have been engaging with local businesses, regional stakeholders, as well as schools and colleges, to help identify the supply chain opportunities and place contracts with local companies wherever possible.
GW: In general, how supportive have the local authorities and community been since the announcement of your plans last year?
Overall, both the local community and the councillors that make up Blaenau Gwent County Borough Council have been very supportive of the planning application and our plans to invest in the area. Given the scale of the project, there has been a high level of interest from the local community, with several residents raising issues of concern. However, we have sought to provide answers to the key matters raised during the consultation processes and this transparency has been warmly received by the community.
GW: What will be the main features of the new project, in terms of proposed melting capacity, production lines, products to be manufactured and other USPs?
This development in Wales is part of our ambitious plans to increase capacity and expand our presence across Europe. We believe this is a market which presents long-term opportunities and significant growth potential. In recent times there has been limited investment in the European glass production sector, particularly in new facilities as distinct from upgrades of existing plants and machinery. CiNER Glass intends to reverse that trend. This investment in Wales demonstrates our determination to be one of the world’s leading glass producers.
The proposed CiNER facility will include two furnaces, each able to produce 500 tons per day across four production lines. With our proposed plant, we are targeting the provision of glass packaging to beer, wine and other beverage markets across the region. Our potential customers shall benefit from our light-weighting know-how and shorter distances in transportation, both of which will contribute to their CO2 reduction goals.
The facility is predicted to produce 1,000 tonnes (gross) of glass per day and contribute to our target of producing 2.5 million tonnes of glass packaging globally a year.
GW: How many jobs will be created in Ebbw Vale and are you already going about identifying and recruiting suitably qualified personnel?
The project is set to create up to 600 highly skilled jobs on a 21.5-hectare vacant plot within the Rassau Industrial Estate. The hope is that the size and scale of this project can act as a catalyst for economic regeneration, helping increase investment in the circular economy in Wales. The project will also create significant supply chain opportunities, supporting 1,200 indirect jobs. Up to 400 jobs will be created during the construction phase, with several hundred additional people working on-site during the peak of construction.
GW: Who will be responsible for building the plant and who will be the key suppliers of production technology?
Currently, we are at the end of RIBA 3 stage, but we are still working on optimising the design of the building. We have also started the Invitation to Tender (ITT) process for the civil works, and the decision is going to be made within a couple of months. The preparations for the process equipment tender are still ongoing, and the choices will be made by the end of 2022.
GW: What approach will you be adopting to the delivery of virgin raw materials and recycled cullet to the Ebbw Vale site, and will any dedicated recycling schemes be established, either in association with brand owners, bottlers or local authorities?
We are still very much in the early stages of discussions with an array of stakeholders on how we can work with them. We are eager to work with companies across various stages of the glass manufacturing process, ranging from working with material providers, engaging with local schools and universities to help provide career prospects in the area, as well as working with both the local authority and the Welsh Government about how we can offer information on the pilot Deposit Return Scheme (DRS) in Turkey and whether it can help the Welsh Government during phase two of its consultation on using glass in the Welsh DRS system.
In terms of recycled glass, Wales already has a very high rate of recycling, and 90% of the glass packaging is recycled. We are aiming to prevent recycled glass being used in the construction market or exported out of Wales by working together with the current local recyclers, as well as the international recycling companies.
GW: Has customer feedback regarding your plans remained positive?
Our customers are very happy that we are looking to expand our production capacity to keep up with demand, as well as build new plants across Europe to help provide glass bottles that are produced locally and reduce transportation costs. Our choice of location for the proposed plant was decided following discussions with our customers.
GW: What is the meaning of the name ‘Dragon Glass Bottle Manufacturing Facility’ referenced in the Ebbw Vale planning documents?
In keeping with a national symbol of Wales, the Welsh dragon, the name of the glass plant reflects our commitment to creating a glass plant that can be a proud asset for both the local Ebbw Vale community and the nation as a whole.
GW: What is the status of the proposed sister investment into a greenfield plant in Lommel, in the province of Limburg in Belgium?
We started working on our project in Lommel at the beginning of 2020, just before the Covid-19 pandemic hit. The biggest challenge due to the pandemic has been the delay in the planning process. However, we have received significant support from the Flemish Government, the Lommel Municipality and the Flemish Investment and Trade Agency. In March 2022, we received our Environmental Permits (MER), and the Construction Permits last month. We have already finalised the detailed designs of our proposed plant, and we are not out for tender for the civil works. We are aiming to finalise the construction and start operation in the first half of 2024.
GW: What was the motivation to recently commission a third furnace at the Park Cam operations in Bozüyük, Turkey?
During the Covid-19 period, the demand for products in glass packaging has drastically increased in the Turkish market, and the increase is still continuing despite the increased energy costs. Additionally, the change in the currency rates and the lack of new capacity expansions in Europe has increased demands for exports to European countries. Therefore, the significant investment at Park Cam is a major step forward in helping to increase our capacity at the Park Cam site – providing over three billion bottles a year – and offers a promising sign of things to come for the company. The announcement is part of our plans to drastically increase our presence, production and delivery of high-quality glass bottles across Europe – as we look to build new factories in Wales and Belgium – and illustrates our ambition and determination to be one of the world’s leading glass producers.
GW: What are the key elements of this investment and what benefits will Park Cam achieve as a result?
We are making a substantial investment of €140m to build a new furnace at our Park Cam glass facility in Turkey. The announcement is part of the company’s ambitious plans to increase its capacity at the site in Bozüyük, Turkey. The third furnace will help produce an additional one billion bottles a year, taking the site’s overall capacity to over three billion. With the third furnace in operation, we will have more flexibility in terms of production, increase the portion of exports and increase the total share in the local market. This furnace shall also act as a back-up furnace for the upcoming investments in Belgium and the UK. Additionally, the furnace, which will be operational from next year and create an additional 100 jobs at the facility, is part of a deal that could see CiNER Glass build the fourth furnace in the future at the Bozüyük site, increasing capacity up to 2,000tpd.
GW: What benefits does Heye International bring as the project leader of that programme?
Heye International is one of the foremost suppliers of production technology, using world-leading high-performance equipment for the glass industry. Our technical team have worked with them for several years. We believe that Heye International’s recent technology together with our technical team’s expertise will contribute to increasing our quality level.
GW: How would you describe prevailing market conditions in the sectors already served by Park Cam and what are the prospects?
We have seen significant price increases across all our raw materials and operational costs since 2021, especially in energy costs. The natural gas prices in Turkey have risen almost seven times, while electricity prices have increased up to three times compared to the previous year’s prices. This has also had a significant effect on the CAPEX costs, which have increased around 40% in the last 12 months. Additionally, the foreign exchange rate has increased 70% the last 12 months, which has affected the production costs. We have also seen these negative impacts on our European investments. All of these financial issues are having a direct impact on overhead costs and investment strategy decisions, but we know that these pressures will alleviate over the next few years, and we remain committed to investing in long-term projects that offer significant potential for the European and Turkish glass packaging industry.
GW: Following the significant plans and developments discussed above in Europe and Turkey, how would you summarise CiNER Glass Group’s future strategy to continue the growth of the glassmaking business (including further investments, brownfield/greenfield ventures and/or acquisitions)?
We are a fast-growing company that is looking to expand our presence across the Turkish, UK, European and American markets, with an annual production target of 2.5 million tonnes of glass packaging by 2026. This ambitious target can only be achieved through our significant investments in Wales, Belgium, and other countries in Europe to produce glass bottles at scale for an increasingly growing market. In the last ten years, we have managed to build the largest Natural Soda Ash producer in the world. With our ongoing investments in glass packaging, we believe we can become one of the leading glass packaging producers as well.
Image: CiNER Glass has become the official main sponsor of Ebbw Vale Rugby Club.