FOR IMMEDIATE RELEASE
O-I Glass, Inc. (NYSE: OI) today announced a
significant investment to support strong customer demand for highly
sustainable glass packaging. O-I will invest approximately $75
million in an expansion at its Zipaquirá, Colombia facility. Upon
completion by the end of 2022, the project is expected to add
nearly 2 percent of capacity to the company’s Americas segment and
produce about 500 million bottles annually.
“Our customers recognize the strong brand
building characteristics and superior sustainability profile that
make glass the preferred packaging substrate. In particular,
strong market growth and affinity for glass is fueling significant
demand for glass packaging in the Andean market. Building on our
highly successful expansion at the Zipaquirá facility in 2019, we
are excited to add a fourth furnace with an attractive return on
investment to support market growth. As a result, the facility will
be one of O-I’s largest and most cost effective plants in the
global network,” said Andres Lopez, O-I CEO.
“Working with our customers, we aim to enable
profitable growth in attractive markets such as this new furnace at
Zipaquirá and last year’s expansion at Gironcourt, France. At
the same time, we are fully committed to reducing debt and
optimizing our business portfolio supported by our tactical and
strategic divestiture program. To date, we have completed
approximately $900 million of divestitures with proceeds directed
to reduce debt. To support the Zipaquirá expansion and maintain our
debt reduction targets, we have expanded our total divestiture
target to $1.15 billion or higher by the end of 2022. As we strive
to increase shareholder value, we believe these actions will
generate profitable growth, higher margins, enhance our business
portfolio and strengthen our balance sheet,” concluded
Lopez.
About O-I Glass
At O-I Glass, Inc. (NYSE: OI), we love glass and
we’re proud to be one of the leading producers of glass bottles and
jars around the globe. Glass is not only
beautiful, it’s also pure and completely recyclable,
making it the most sustainable rigid packaging material.
Headquartered in Perrysburg, Ohio (USA), O-I is the preferred
partner for many of the world’s leading food and beverage brands.
We innovate in line with customers’ needs to create iconic
packaging that builds brands around the world. Led by our diverse
team of more than 25,000 people across 72 plants in
20 countries, O-I achieved revenues of $6.1 billion in
2020. Learn more about us:
o-i.com / Facebook / Twitter / Instagram / LinkedIn
The company routinely posts important
information on its website – www.o-i.com/investors.
Forward-Looking Statements
This press release contains “forward-looking”
statements related to O-I Glass, Inc. (“O-I Glass” or the
“company”) within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and Section
27A of the Securities Act of 1933. Forward-looking statements
reflect the company’s current expectations and projections about
future events at the time, and thus involve uncertainty and risk.
The words “believe,” “expect,” “anticipate,” “will,” “could,”
“would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,”
“potential,” “continue,” and the negatives of these words and other
similar expressions generally identify forward-looking
statements.
It is possible that the company’s future
financial performance may differ from expectations due to a variety
of factors including, but not limited to the following: (1) the
impact of the COVID-19 pandemic and the various governmental,
industry and consumer actions related thereto, (2) the company’s
ability to obtain the benefits it anticipates from the Corporate
Modernization, (3) risks inherent in, and potentially adverse
developments related to, the Chapter 11 bankruptcy proceeding
involving the company’s wholly owned subsidiary Paddock Enterprise,
LLC (“Paddock”), that could adversely affect the company and the
company’s liquidity or results of operations, including the impact
of deconsolidating Paddock from the company’s financials, risks
from asbestos-related claimant representatives asserting claims
against the company and potential for litigation and payment
demands against the company by such representatives and other third
parties, (4) the amount that will be necessary to fully and finally
resolve all of Paddock’s asbestos-related claims and the company’s
obligations to make payments to resolve such claims under the terms
of its support agreement with Paddock, (5) the company’s ability to
manage its cost structure, including its success in implementing
restructuring or other plans aimed at improving the company’s
operating efficiency and working capital management, achieving cost
savings, and remaining well-positioned to address Paddock’s legacy
liabilities, (6) the company’s ability to acquire or divest
businesses, acquire and expand plants, integrate operations of
acquired businesses and achieve expected benefits from
acquisitions, divestitures or expansions, (7) the company’s ability
to achieve its strategic plan, (8) the company’s ability to improve
its glass melting technology, known as the MAGMA program, (9)
foreign currency fluctuations relative to the U.S. dollar, (10)
changes in capital availability or cost, including interest rate
fluctuations and the ability of the company to refinance debt on
favorable terms, (11) the general political, economic and
competitive conditions in markets and countries where the company
has operations, including uncertainties related to Brexit, economic
and social conditions, disruptions in the supply chain, competitive
pricing pressures, inflation or deflation, changes in tax rates and
laws, natural disasters, and weather, (12) the company’s ability to
generate sufficient future cash flows to ensure the company’s
goodwill is not impaired, (13) consumer preferences for alternative
forms of packaging, (14) cost and availability of raw materials,
labor, energy and transportation, (15) consolidation among
competitors and customers, (16) unanticipated expenditures with
respect to data privacy, environmental, safety and health laws,
(17) unanticipated operational disruptions, including higher
capital spending, (18) the company’s ability to further develop its
sales, marketing and product development capabilities, (19) the
failure of the company’s joint venture partners to meet their
obligations or commit additional capital to the joint venture, (20)
the ability of the company and the third parties on which it relies
for information technology system support to prevent and detect
security breaches related to cybersecurity and data privacy, (21)
changes in U.S. trade policies, and the other risk factors
discussed in the company’s Annual Report on Form 10-K for the year
ended December 31, 2020 and any subsequently filed Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q or the company’s other
filings with the Securities and Exchange Commission.
- O-I Glass Announces Expansion in the Andean Market to Serve
Growing Demand for Sustainable Glass Packaging
For more information, contact:
Chris Manuel, Vice President of Investor Relations
567-336-2600
Chris.Manuel@o-i.com
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