UMVA has learned that Encirc, a Spanish-owned company responsible for producing a third of Britain's glass bottles, is on the brink of abandoning a massive £500m furnace upgrade.
The move comes as tensions rise between the company and Whitehall over a levy that has sparked concerns about its impact on the industry. The Bank of England has warned that the levy is already being felt by consumers, with costs being passed on to the till.
Encirc's £500m investment was seen as a significant commitment to upgrading its facilities, but it now appears that this project is under threat. The company's decision to potentially withdraw from the upgrade has significant implications for the UK glass industry.
Sources close to the matter have confirmed to UMVA that the levy has become a major point of contention, with Encirc and other industry players pushing for a rethink. The situation is being closely watched by industry insiders, who fear that the levy could have far-reaching consequences for the sector.
