Owens-Illinois (O-I) has entered into an agreement to acquire a Mexican glass manufacturing plant from Grupo Modelo, an affiliate of AB InBev.
The Nueva Fábrica Nacional de Vidrio facility, which is located near Mexico City, will be bought for approximately $188 million. The site currently has four furnaces to produce and supply approximately 300,000 tons of glass containers annually for Grupo Modelo brands such as Corona, Modelo Especial and Pacífico.
O-I expects the business to contribute approximately $140 million of revenue and $40 million EBITDA on an annual basis. The glass manufacturer will also enter into a long-term agreement to continue to supply glass to Grupo Modelo.
Andres Lopez, O-I CEO, said: “The acquisition of Nueva Fanal reflects O-I’s strategy to invest in the growth of sustainable glass packaging by partnering with our customers to help enable their growth in premium brands, such as Corona, one of the most popular and fastest growing beer brands globally.
“This investment is in addition to our recently announced nearly 50% acquisition of Empresas Comegua S.A. as well as our plans to expand our Gironcourt, France, glass plant. These, along with the investment in the Nueva Fanal glass plant, are examples of the near-term strategic growth opportunities we discussed at our November 2018 investor day and incorporated into our 2019 outlook.”
The Gironcourt plant expansion was announced last month and will see O-I invest more than $60 million as it responds to growing consumer demand for sustainable glass packaging. It is expected the project will be completed in early 2020.
Headquartered in Perrysburg, Ohio, O-I employs more than 26,500 people at 77 plants in 23 countries. Last year, the firm had revenues of $6.9 billion.
By Jules Scully
Source: FoodBev
We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.
Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.
