Internet Edition  Newsletter of the Soda Ash Industry  April 2008
MONTHLY NEWSLETTER | FACTBOOK | GLASSBOOK

INTRODUCTION

The making of glass is both an ancient art and a modern science. Today's glass industry is large, diversified, complex and sophisticated. It is comprised of at least four hundred and eighty primary glass manufacturers (companies that make glass from raw materials) that range from Owens Illinois and St. Gobain, the world's largest container glass makers to little Caithness Glass Company in Perth, Scotland, that makes some of the world's most beautiful art glass paperweights.

Glass manufacture is indeed a global enterprise. There is significant glass production in at least sixty-five countries with total world annual primary glass output at more than 114.3 million metric tons. Primary glass production, glass products production, raw material supply, plant equipment and operation and a variety of support industries make this industry a major economic force worldwide.

Soda ash and silica are the two most fundamental ingredients in making glass. On averge, the typical glass batch contains about 15% soda ash by weight. On a worldwide basis, the consumption of soda ash in glass manufacture exceeds 17 million tons and is 49% of all soda ash consumption.

Over a period of many months, Dr. J.A.B. (Tony) Whiteside has written a complete review of the world glass industry and its relationship to the soda ash industry in the Trona Patch Times. Dr. Whiteside is one of the best-known world experts on soda ash and the use of it by glass companies on a global basis. The following is an updated and expanded compilation of his informative articles about the glass business and together represents an encyclopedia of this important world industry.

GLOBAL BACKGROUND

Glass is an integral part of the world. Once considered a luxury affordable only by the rich, more and more glass is used today in office buildings and houses as people demand better and better conditions at work and in the home. This of course is music to the ears of soda ash producers. Globally speaking, the glass sector is by far the biggest user of soda ash. The actual percentage can vary from region to region, but generally speaking, the greater the GDP, the greater the percentage of soda ash consumed in the glass sector. In global terms, 49% goes to glass, with 22% being consumed in the Chemicals Industry. Around 11% is bought by the detergent sector, and pulp and paper accounts for a further 1%. About 17% is distributed amongst a variety of end-users, such as water purification, the metals industry etc.



Globally speaking, the flat glass sector is dominated by four multinational companies, two of which are European - Pilkington and St. Gobain; an American company - Guardian; and a Japanese company - Asahi. On the other hand, the container glass industry is dominated by Owens-Illinois and St. Gobain, both strong in the USA, Europe, South America and some other places.

Glass markets were varied in 2001, reflecting the different trends in the global end-use markets. While sales of speciality glass to the high-tech and industrial markets slumped toward the end of 2000 and remained low throughout 2001, sales of specialty glass for consumer applications - such as glass-ceramic cooktops - finished higher for the year. Sales of flat/float glass to the automotive and construction sectors remained strong in the first half of the year, but a slowdown in those markets was becoming apparent by late 2001 and early 2002. Container glass, on the other hand, benefited from continued strong demand for wine and malt beverages, including beer and ready-to-drink low-alcohol refreshers.



© 2008 Walter Clark Consulting. Federal Copyright law prohibits unauthorized reproduction by any means without prior written permission of the publisher.