Ardagh Glass Holmegaard A/S ended 2024 with a deficit of 64 million kroner. It is the second consecutive year with double-digit million losses for Denmark's only producer of packaging glass for food and beverages.
Revenue fell by five percent to 645 million kroner, even though more units were sold than the previous year. According to director Kim Holmberg, the decline is due to intense price pressure from foreign competitors, who are trying to survive by dumping prices in the Nordic market.
At the same time, energy prices remain three to four times higher than before the pandemic and the war in Ukraine, and as an energy-intensive company, the glassworks feels it directly on the bottom line. The production facility in Fensmark operated most of the year with six out of seven lines and has had stable operations, but the economy is under pressure.
New fee raises concern
From 1 October 2025, a new Danish tax of six kroner per kilo of glass packaging will be introduced. The level is significantly higher than in other EU countries and, according to Ardagh, risks pushing customers towards plastic - contrary to the intention of promoting recycling.
Director Kim Holmberg recently attended a meeting at the Ministry of the Environment on the matter and describes it as an important step in the dialogue:
- I experienced a genuine desire for dialogue. It was a positive meeting, and I actually think they listened to us.
The fee is part of the EU's producer responsibility, but according to Holmberg and industry organisations, the Danish model is skewed. Glass is recycled to a much greater extent than plastic, but risks being rejected for economic reasons.
CO₂ requirements and unequal conditions
The glassworks is also pressured by differences in CO₂ regulations across the EU. Denmark does not exempt biogas in natural gas from tax, as countries like Sweden and Germany do. This reduces competitiveness, according to the management:
- We use 38 percent biogas, but in Denmark it is not exempt from tax if it comes in the same pipe as natural gas. It is in other countries, and it puts us at a significant disadvantage, says Kim Holmberg.
In 2024, it was possible to reduce CO₂ emissions by 3.1 percent to 46,540 tons. The management expects a turnover between 630 and 650 million kroner in 2025 and a pre-tax result in the range of minus 15 to 0 million. Sales volumes are expected to increase, but price competition remains tough, and market conditions are uncertain.
