Ardagh acquires Swedish glass recycler to secure supply of high-quality cullet
30 Apr 2024 --- Ardagh Glass Packaging-Europe (AGP-Europe) is acquiring Swedish glass recycler Svensk Glasåtervinning (SGÅ).
Regarding the motivation behind the purchase, AGP-Europe details that it is driven by “a commitment to protect Sweden’s circular glass recycling system, in light of the new regulation.”
A recent change in the regulation of post-consumer glass collection from this year requires Swedish municipalities to take over the collection role and introduce property-based glass collection.
SGÅ says it collects and recycles 30–35 truckloads with a total of 900 tons worth of glass packaging, delivering the country’s 90% glass recycling rate.
“Buying SGÅ is the perfect complement to our glass production in Sweden. It will protect glass recycling and ensure we continue to close the glass loop, securing the supply of recycled glass cullet — one of our most important raw materials for lower-carbon glass packaging,” says Martin Petersson, CEO at AGP-Europe.
The acquisition ensures that glass collected in Sweden is retained within the country for use in glass packaging production.Retaining post-consumer recyclate
The glass packager says a recycling system is vital to secure an ongoing supply of high-quality glass cullet. The acquisition ensures that glass collected in Sweden is retained within the country for use in glass packaging production and is not exported for processing outside Sweden for other industry applications.
The transaction is subject to approvals expected to be obtained in the second quarter of 2024.
AGP-Europe is taking over the shares of the other four co-owners of SGÅ to become the sole owner. SGÅ will retain its name and operating model, focusing on receiving and recycling glass packaging waste and selling glass cullet.
CEO of the Swedish Brewery Association and one of the co-owners, Anna-Karin Fondberg, says: “We, along with the other co-owners, are very pleased to sell to AGP-Europe.”
“They have been crucial for developing high-quality glass with a high ratio of recycled glass cullet. The next step is crucial for the Swedish F&B sector to secure the supply of sustainable glass packaging with a relatively low CO2 footprint.”
Magnus Andersson, CEO at SGÅ, adds: “Ardagh knows and understands the glass industry, including glass recycling, and as a result, the glass industry in Sweden fully supports the new ownership. We look forward to continuing work with Ardagh to develop long-term goals for the company and maintain our position as a world-class glass recycler.”
By Radhika Sikaria
