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Niall Wall, CEO for Heineken at new
Welcome to the first
Newsletter from Ardagh
Moerdijk Furnace
As you are aware, 2009 has been a Less than one year after the announcement of a new furnace at Moerdijk
difficult year for many businesses across in the Netherlands, dedicated to Heineken, beer bottles are rolling off the
the world. Europe was particularly production line. The new furnace, which doubles production at the plant,
affected by the global recession is close to one of Heineken’s main production centres.
including all the markets we operate
in and although our industry held up We, and colleagues from Heineken, are proud to welcome this
more than most, sales volumes have outstanding achievement, which significantly reduces the environmental
deteriorated. As a result we have had impact of the glass bottles which we produce for them. The furnace CO2
to make some difficult decisions with
emissions are reduced by 12%, energy usage is reduced by 13% and the
temporary line closures across the Group
and furnace closures in Bad Münder and
CO2 from road transportation is additionally reduced by 80%.
Obernkirchen. These actions were taken
with much thought and deliberation in The new furnace has the latest state of the art oxy-fuel fired technology,
order to allow the business to become significantly reducing emissions in compliance with future European
leaner and more efficient with the legislation.
intention of safeguarding employment
for the majority of our people. The Moerdijk project is a significant development, which consolidates
the long term partnership between Ardagh Glass and Heineken.
In April this year the Company
undertook a project called Project Sense,
with the aim of reducing costs by €70m
against the 2007 budget. All
stakeholders were involved and through
a combined effort we will achieve our
objectives, placing Ardagh at a
competitive advantage for 2010. We are supporting various Children’s
I would personally like to thank all Charities across Europe this Christmas
Ardagh employees for their support
in this project which will help us stay
competitive as the challenges for our
business continue into 2010. Your
continued support will ensure Ardagh
remains successful in the coming years
and develop its position as one of
Europe’s leading glass manufacturers.
Business Processes & Systems To this end, a formal structure to ensure Ardagh’s
business processes and systems are controlled has
been introduced to enhance the work of the SCC
To support the ongoing development of Ardagh’s business we
(SAP Competence Centre) and Key Users.
have recognised the need to improve and integrate our systems.
The SCC will change its name to the BST (Business
Systems Team) and together with the BPT (Business
Processes Team) made up of Group Key Users will
be responsible for ensuring process and system
development fits with the requirements of the
business. Specifically, the coordination and
development of the key business systems (SAP,
MERA and BW), together with integration to APS
and iShare will become the responsibility of the
BST and BPT teams under the guidance of a
Steering Group.
A host of high profile speakers from the industry as well as from the world
of science and technology highlighted the merits of glass as the packaging
material of the future in a world where environmental concerns are
becoming top of the agenda for businesses and brands. The conference
also acknowledged that as well as being perceived by consumers as a
highly sustainable material, glass also offered innovative solutions for
businesses evaluating their credentials in the area of sustainability.
AG Vision - Group_Newsletter 01/12/2009 13:10 Page 4
Thousands of people
How glass is able throughout Europe have
positive things to say
to measure the about glass...
So, in 2008, FEVE, the European Glass
This LCA study takes a ‘cradle to cradle’ approach which Managing an uncertain market
measures not just the environmental impact of the As we reach the end of 2009 demand for glass packaging
material up to the factory gate, but continues up to the in Europe is expected to be down 6%. However, due to
‘end of life’ or waste phase. Because it has used data the economic downturn this was something Ardagh
from 200 glass furnaces and was independently verified, anticipated early in the year and we took appropriate
it is the most credible and comprehensive assessment measures at the start of the cycle to adjust our stock levels
ever conducted across all packaging industries. and costs. As a result, the Company is in better shape to
move forward and take advantage of any economic
A good way to describe our approach is to use the rebound that is predicted for 2010.
metaphor of an Iceberg. Other materials measure
themselves against the visible part of the iceberg The good news is that we have already secured contracts
(ie, by excluding the waste phase) and ignore what for more than half our 2010 sales target, including long
is under the water. The new LCA data for glass term contracts with key customers such as Heineken,
considers the full picture. Absolut and ABInBev.
LCA is a complex subject, but thanks to this study the We must expect that next year customers will be able
glass industry is gaining credibility. The results help us to to take advantage of a competitive market for glass
fully understand our impact and target real reductions. packaging. However, the long-term relationships we enjoy
As an industry we are developing strong messages to with many customers, our strong and experienced sales
counter unfair comparisons with other materials and team, and the flexibility we now have across the whole
support our industry going forward. business will ensure this is carefully managed.
Steffen Seehausen - Head of Group Physical Risk Management Reiner Brand - Group Sales & Marketing Director