The production of diffused horticultural glass in Europe is at a standstill. Major German producer GMB-Interfloat has shut down its factory. AGC, another European supplier, has also stopped supplying diffused glass. This is typical of a sector under pressure from the solar market crisis, high energy prices, and low-priced competition. As a result, the greenhouse sector seems at the mercy of supplies from China, although India is also a relatively new player.
Less and less European horticultural glass production
The disappearance of diffused glass production for horticulture has a lot to do with the struggling German economy and the collapse of the solar market. Glass production requires a lot of energy, which makes it difficult to produce in Europe at a competitive price. Moreover, the market is relatively small. "The horticultural market is a big market, but compared to the overall glass market, it is only a very small segment," explains Michiel van Spronsen of glass trader Glascom International. The big melting companies, which are also facing economic decline and the collapsing solar market in Germany, consider horticultural glass a side business. "It is a side business for the big producers," he says.
There is also a lot more competition since the solar market collapsed. Glass producers in Europe are reviewing their production, and many Chinese producers who initially focused on glass for solar panels are now targeting horticulture. Export subsidies and the lower energy prices there also make the product cheaper, which is of great importance. "Horticulture is a market where a lot of consideration is given to price anyway," Michiel notes. He previously worked with AGC to market products like the Fountain glass and innovative products like Geysir. This glass, equipped with various coatings, delivers significant energy savings but is therefore also higher priced. "You notice that growers and advisers see the added value and are also quicker to look at the longer-term yield, but in new construction projects from the greenhouse industry, the main focus is on price."
New initiatives from, for example, the UK's NSG Group, which also supplies energy-saving glass with the Pilkington Botanical range and specializes in glass that is self-cleaning, are struggling to gain a foothold partly because of this.
The Ukrainian government announced last week that a new production center of float glass will be built in the Kiev region by 2028. Whether this NovaSklo project will also produce horticultural glass is not yet known.
Photo: GMB-Interfloat plant in Germany
Last large factory in 'hibernation'
The use of glass from China in horticulture has been on the rise for years. "This has been the case for a long time. The horticulture market is a volume market, which is really price-driven," says Luciën Knetemann of Glasimport Greenhouses. The company, which is celebrating its 60th anniversary this year, supplies exclusively Vetrasol glass, the brand produced until the end of last year at the German factory GMB-Interfloat. And indeed - that factory has 'gone into hibernation', Lucien confirms. "It does currently still temper and coat glass, for orders that were already there and for new orders with other base glass. And pre-production for horticultural glass was done in 2024."
The news, reported just before Christmas, was a bit of a shock, he confirms. However, after moving quickly, Glasimport is able to continue supplying Vetrasol through GMB-Interfloat's parent company, the aforementioned Borosil Renewables. The Vetrasol glass that Glasimport Greenhouse sourced from Germany until the end of last year will now come to Europe from this Indian company.
Lucien has known the company for some time, even from before his company started selling German Vetrasol glass in 2013. "Back then, we bet on exclusivity with the German manufacturer. Now we also supply exclusive glass, but from India. We have already been able to list more than 200,000 meters of this Indian glass this year. If we had had to find a completely new party to produce our glass, we would never have been able to do it so quickly."
At the factory in India, they are now also lining up the technology as they know it from Germany. "That way, we will soon be able to supply all our products from India." Two major Dutch projects will be glazed with this product. "It involves Vetrasol MD1 provided with AR. That is a specific medium-diffuse glass with a hortiscatter of around 30% and also high direct and hemispheric light transmission."
Vetrasol MD1
Logistics and delivery time
From Germany to India, in other words. Production from afar, whether it's going to be China or India, does mean longer delivery times and dependence on production there. In the case of new construction, this can be anticipated, but if there is a whirlwind or a hailstorm, delivery times will be affected. Insurers now advise growers to keep enough stock to be able to start repairing immediately in case of a disaster.
This is true, Lucien points out, but he also notes that a lot of glass was already coming from China. So it is not suddenly very different. "Parties that already buy from China know that delivery times are longer," he says. For storm damage, Glasimport Greenhouses is stockpiling. Delivery times from India are longer than from Germany, but shorter than from China, he stresses. "Moreover, even with European producers, it was sometimes difficult to switch quickly in case of calamities, for example, because factories were full of work for the solar market. During the major hail damage in the Netherlands in 2016, for instance, we had the advantage that the solar market was quiet. Then we were able to deliver quickly from Germany. But that is not always the case. Chinese manufacturers are much more flexible in this respect. So, in theory, getting glass from further away means longer lead times, but in practice, it is not always the case."
Alternatives
Several suppliers indicate that it is noticeable in the market that greenhouse builders and traders are trying to find alternatives, looking to meet grower requirements with possibly lower light transmission and different coatings.
Michiel also notices that the role of suppliers is changing. "You see that parties can have direct contact with the producers, even if they are abroad. For us, it means that besides supplying glass, it's much more about advisory work. Which diffusivity, which AR coating. Especially with more complex projects or in special locations, that comes up for discussion."
Glass lies in wait at new construction project. Archive image GroentenNieuws
Meanwhile, Lucien stresses that new, innovative glass, such as Geysir glass, is still available. "Geysir glass used to go directly into the market and is now going broadly into the market because we have the ability to provide the glass produced by AGC in Europe with the necessary AR coating and temper the glass in Germany. Recent developments have set some things in motion in that respect."
Cyclical
The current production problems in the European glass industry are driven by cyclical factors. "We hope that German production of Vetrasol will pick up in time," says Lucien. "In any case, the outcome of the German elections does not seem to have turned out badly for the German industry," he signals hopefully. "Who knows, we might soon be able to supply Vetrasol glass from two production sites. Then we will emerge stronger from this rather unpleasant situation. Glass for the US could then come from India, for example, and glass for Europe again from Germany."
On Wednesday, the European Commission came up with a rescue plan for European (heavy) industry. The question is whether it will help companies, keep them here and whether it is timely, for example for the horticultural glass industry in Europe.
For more information:
Glasimport Greenhouses
info@glasimport.nl
www.glasimport.nl
Glascom International BV
Tel: +31 6 3456 3210
info@glascominternational.com
www.glascominternational.com