Glassmaking in an unstable world: Some factories close, while others rise from the ashes
Translated from Serbian and summarized by DistantNews. Read the original for the full story.
At a glance
- Paraฤin's glass factory, Serbia's only remaining domestic glassmaker, is modernizing after being acquired from bankruptcy in 2022 by Swiss Vaider Group.
- The company has invested about 100 million euros in new equipment, including AI-based inspection lines, and can produce nearly 100,000 tonnes of glass products annually.
- Energy costs, foreign competition and an unregulated system for collecting used glass limit the factory's ability to expand and compete on price.
Glass factories are closing in some countries, including Greece, while Turkey is pushing its products into European markets. In Serbia, the glass factory in Paraฤin is trying to withstand the pressure through modernization and plans for more efficient energy use.
The factory, the only one left on Serbiaโs domestic market, was in poor condition after two failed privatizations. Swiss Vaider Group took it out of bankruptcy in 2022. Since then, the group has invested about 100 million euros in modernizing the plant. Vaider also owns Sloveniaโs Steklarna Hrastnik.
Paraฤin has installed latest-generation AIS production machines capable of making more than 400 bottles per minute with high precision. It has also invested in advanced inspection lines that use learning artificial intelligence. The system sets its own parameters for removing defective products after assessing the first item placed on the line.
โWith the new technology, we produce up to 270 tonnes of glass batch a day, which amounts to nearly 100,000 tonnes of products a year,โ Igor Antiฤ, Vaiderโs director of executive operations at the Serbian Glass Factory, told Biznis i finansije. Production mainly consists of container glass. The factoryโs former handmade products, including glasses and optical glass, ended long ago. The machines could produce more, he said, but demand determines the volume and product mix.
With the new technology, we produce up to 270 tonnes of glass batch a day, which amounts to nearly 100,000 tonnes of products a year.
The company currently covers about 20 percent of the Serbian market. Its share once stood much higher, but unreliable production in previous years pushed many customers toward suppliers in Croatia, Bulgaria, Romania and, more recently, Hungary.
The factory could broaden its range, but the energy crisis and other effects of geopolitical tensions make it difficult to compete on price with Chinese and Turkish producers. โFor glass packaging, because of the productโs weight and the high share of transport in costs, local factories have an advantage when they are within 500 kilometres of the customer,โ Antiฤ said. Paraฤin has partly moved beyond that limit, supplying some manufacturers across Europe and exporting several products to the United States.
Glass can be recycled repeatedly without losing weight or changing its chemical composition. However, the amount of recycled glass in the final product depends largely on customers. The source text ends while discussing the demands attached to higher-quality products that Paraฤin began making late last year.
For glass packaging, because of the productโs weight and the high share of transport in costs, local factories have an advantage when they are within 500 kilometres of the customer.
Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.