Ardagh Glass Ltd has warned shareholders that it faces a dual threat of higher energy prices & significant competition in its core UK market from the Quinn Group. The firm, which was spun off from Ardagh plc last year, says it expects the UK glass market to be significantly disrupted when the Quinn Group's new plant at Ince, nr Chester, opens next year. Ardagh chairman, Mr Paul Coulson said:"It is believed that, at full production, the plant will be capable of producing the equivalent of 20% of UK market demand. Clearly, the introduction of this new capacity will be very disruptive in the market & your board is examining strategies to minimise the impact of the threat posed." Quinn's decision to enter the Irish glass market, with the construction of a plant in Fermanagh, led to Ardagh PLC's decision to exit the Irish market & demerge its UK glass-making operation.
