Denmark’s last glassworks faces €2.7m loss after controversial packaging fee

Denmark’s historic Holmegaard Glassworks, now operating as Ardagh Glass Holmegaard, has reported losses of 20 million kroner (€2.7m) since the introduction of a disputed packaging fee six months ago, DR reports.

Kim Holmberg Hansen, the company’s CEO, described the financial impact as “extremely severe for our industry.” The glassworks, the country’s last of its kind, has already shut down two of its six production lines as customers shift away from glass packaging, which has become significantly more expensive under new EU-aligned rules.

The fee—set at six kroner (€0.80) per kilogram of glass—is the highest in the EU. Hansen warned last year that the Danish interpretation of the rules would distort competition by favoring alternatives like cans and plastic. “Many customers have switched to materials they already used, or are transitioning to plastic instead of glass,” he said.

Retailers push for lighter packaging

The EU’s producer responsibility directive aims to reduce waste and boost recycling by shifting waste-handling costs from consumers to businesses. However, critics argue Denmark’s implementation unfairly penalizes heavier materials like glass while sparing lighter plastics.

“The fee is solely weight-based without comparing environmental impacts,” said Charlotte Sørensen, a tax specialist at BDO. “Glass is fully recyclable and leaves no microplastics, so this system doesn’t actually improve environmental outcomes.”

Retail giant Coop confirmed it is now asking suppliers for lighter, lower-fee alternatives. “We’re looking at plastic for some of our cheapest products,” said Thomas Roland, Coop’s head of product responsibility, acknowledging the fee has “isolated” glass as a less viable option.

Government relief stalled by election

A proposed 30% reduction in the glass fee, drafted by the Environment Ministry before June’s snap election, remains on hold during coalition negotiations. “Until legislation passes, nothing changes,” Hansen said, expressing concern that prolonged delays will push more customers toward permanent alternatives.

The glassworks may temporarily ramp up production for summer harvests, but its long-term outlook depends on political action. “The longer this takes,” Hansen warned, “the more time our customers have to abandon glass entirely.”

Founded over 200 years ago near Næstved, Holmegaard Glassworks was once a cornerstone of Danish design. Its current struggles highlight tensions between environmental policy and industrial survival as the country phases out traditional packaging.