O-I plots production cuts at its French glass plants

O-I Glass is proposing cuts at several of its French manufacturing facilities.

It is considering the potential closure of the Vergèze plant, stopping a furnace at its Vayres facility, operational adjustments at its plants in Gironcourt, Puy-Guillaume, and Reims and job cuts in administrative roles within its French headquarters.

The company has initiated an information and consultation process with its European and French employee representatives.

Up to 320 jobs are at risk.

It said the glass market in France has been considerably challenged, primarily due to a slow-down in the wine market.

This slow-down, combined with overcapacity and strong competition, has prompted the company to consider additional actions to improve its long-term competitiveness.

It said: “To face these challenges and adapt to an increasingly complex market, O-I has announced a strategic initiative, Fit to Win, aimed at ensuring the sustainability of its business in the long-term and improving the agility and flexibility of its operations to make glass more competitive and widely available.”

It added: “The company intends to carry out any such plan transparently and responsibly for any potentially impacted employees and in consultation with the various representative bodies and relevant authorities. “

Investment

The world’s largest container glass manufacturer said it is also considering a multi-million Euro investment in its French plants in line with its previously announced 2025 capital plan.

The company expects these investments in its French plants will support the development of the use of glass and strengthen O-I's position as a major player and employer in France, which remains a strategic market for the company.