O-I Glass has announced plans for global investments of up to $680 million, tipped to add up to 700,000 tons of extra glass packaging capacity.
The investment will include up to two MAGMA lines installed at the company’s plant in Alloa to support growth in the spirits market.
MAGMA is described as a ‘breakthrough solution’ that will ‘reinvent’ how glass containers are made. MAGMA lines are said to be ‘flexible and scalable’ and will improve O-I’s ability to expand in differentiated product segments. Through the installation of MAGMA lines, O-I added that it will have the ability to more quickly add capacity in smaller increments closer to customers.
The company revealed it intends to focus on expanding ‘premium products’ in Latin America and in the ‘fast growing and high value’ premium spirits category in the US and UK.
“This investment is about taking bold action as we transform the company and pivot to meet the evolving requirements of the packaging market,” explained Andres Lopez, CEO of O-I Glass. “We are embracing and executing change. Our investment in the innovative MAGMA solution represents a major leap that will accelerate O-I’s transformation.”
The investments will also include $100 million on the previously-announced expansion at one of the company’s facilities in Colombia and up to $580 million in targeted markets, including the MAGMA lines in Alloa.
“Our goal has always been to redefine glass making around a flexible, scalable, and sustainable solution that improves our supply chain position,” Lopez added. “We are ready to deploy MAGMA, achieve the full potential of glass, and enable profitable growth. 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.”
