Ardagh Glass Packaging Europe (AGP-Europe) has agreed to purchase glass recycler Svensk Glasåtervinning (SGÅ), aiming to secure its supply of high-quality glass cullet and prevent exports from taking recyclate out of Sweden.

Reportedly reaching a 90% recycling rate for glass, SGÅ has been in operation for over thirty years. Due to a recent change in regulation for the collection of post-consumer glass from the start of 2024, Swedish municipalities are now expected to take over the role of collection and introduce property-based glass collection.

In line with the new regulation, AGP-Europe’s decision to buy SGÅ is anticipated to keep glass collected in Sweden within the country for use in further glass packaging production, as opposed to exporting it for other industry applications, and help protect Sweden’s circular system for glass recycling.

“Buying SGÅ is the perfect complement to our glass production in Sweden,” commented Martin Petersson, CEO at AGP-Europe. “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.”

Magnus Andersson, CEO of SGÅ, added: “Ardagh knows and understands the glass industry, including glass recycling, and as a result, the glass industry in Sweden is fully supportive of the new ownership. We look forward to our continuing work with Ardagh to develop long-term goals for the company, and to maintain our position as a world-class glass recycler.”

AGP-Europe is one of five companies in partial ownership of SGÅ since it was founded. Now it is buying the shares of the other four co-owners to become the sole owner. SGÅ will keep its name and operating model, and will focus on receiving and recycling glass packaging waste, as well as selling glass cullet.

One of the co-owners selling its shares to AGP-Europe is the Swedish Brewery Association.

“We, along with the other co-owners, are very pleased to sell to AGP-Europe,” said CEO Anna-Karin Fondberg. “They have been crucial for the development of high-quality glass with a high ratio of recycled glass cullet.

“The next step is very important for the Swedish food and beverage sector to secure the supply of sustainable glass packaging with a relatively low CO2 footprint.”

Last year, Bormioli Rocco merged with glassmaker Bormioli Luigi in a bid to improve the latter’s agility and flexibility, achieve a more integrated process, and help the organization become more profitable.

International Paper recently announced that it had reached an agreement with DS Smith for a recommended all-share combination after an unsuccessful counterbid from Mondi. Expected to close by Q4 2024, the move is set to establish a differentiated corrugated packaging company with approximately 90% of revenue from fibre-based packaging.

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