O-I Glass targets US, UK glass packaging markets in new US$680m growth investment plans

US – O-I Glass, one of the world’s largest glass packaging manufacturing companies, has announced plans for global investments worth up to US$680 million, as it looks to expand its glass packaging capacity. 

The new investment will enable the Perrysburg, Ohio-based company to focus on its expansion of premium products across the US and UK.  

O-I also plans to assign a significant portion of the investment into expanding its production capacity. The company plans to add up to 700,000 tons of extra glass packaging capacity through this initiative. 

Regionally, O-I revealed that the investment will include US$100 million for the expansion of one of the company’s facilities in Colombia and up to US$580 million in targeted markets. 

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O-I’s also plans to scale its Modular Advanced Glass Manufacturing Asset (MAGMA) solution which involves installing flexible and scalable lines to improve its ability to meet customers’ and consumers’ different demands. 

Andres Lopez, CEO of O-I Glass, said: “Our goal has always been to redefine glassmaking around a flexible, scalable and sustainable solution that improves our supply chain position. We are ready to deploy MAGMA, achieve the full potential of glass and enable profitable growth.” 

He continued: “This new capability will enable the company to grow in existing markets and enter new markets with greater flexibility. MAGMA represents a major leap forward that will accelerate our company’s transformation.” 

The company expects to complete the development of Generation 3 MAGMA solutions for use by 2025. 

O-I aggressive expansion is testimony of the importance that glass continues to hold particularly in the packaging of beverages. 

The recyclable nature of glass makes it environmentally, the most desired packaging type when compared to other materials. 

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Plastic which had for some time been a strong competitor has quickly lost its favor among consumers due to its adverse impacts on the environment. 

Also, innovative technologies for embossing, shaping, and adding artistic finishes to glass are making glass packaging more desirable among end-users. 

As the demand for glass continues to hold, Morder Intelligence projects that the global glass packaging market to grow at a CAGR of 4.39%, to reach US$73.29 billion by 2026.   

Earlier in September, O-I published its 2020 sustainability report where it added recycled content, water reduction, renewable energy and zero waste to its ambitious and aspirational goals to achieve by 2030.  

The company in a statement said that these new goals represent a holistic approach to improving energy use, emissions, materials procurement, waste, and water. 

Some of the progress made in 2020 include the appointment of its first Chief Sustainability Officer, to create an integrated approach around shared goals and collaborative changes in the company. 

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