O-I Enters Joint Venture with OST Group
October 20 2005 - 9:00AM
PR Newswire (US)
TOLEDO, Ohio, Oct. 20 /PRNewswire-FirstCall/ -- Owens-Illinois,
Inc. (NYSE:OI) today announced that it has entered a joint venture
with the OST Group, one of Russia's largest producers of spirits
and soft drinks. O-I has purchased a minority stake in OST Tara, an
OST Group company which operates a glass container plant near
Moscow. The recently constructed plant began production in May
2004. As part of the joint venture, O-I has a series of call
options through which it may acquire a controlling interest in OST
Tara in the future. O-I also has entered into a technical
assistance agreement with OST Tara. The OST Group has entered into
a long-term supply contract with OST Tara for a major portion of
its glass container requirements. "We entered this joint venture
with a focus on broadening our market base in an emerging economy
demonstrating strong growth," said Steve McCracken, O-I Chairman
and CEO. "OST has a prominent standing throughout the Russian
Federation and has aggressive development plans. This venture will
give us an opportunity to grow with an important customer as well
as provide a foundation for growth in the Russian glass markets in
general." The OST Tara plant produces more than 200 million glass
bottles per year using modern production technology. The site
layout and infrastructure offer the opportunity to expand the
current production capacity. Additionally, the plant was designed
to be environmentally friendly, with a full waste recycling system.
Prior to the opening of the plant, the OST Group purchased bottles
from O-I's operations in Finland, as well as other suppliers in
Ukraine and Latvia. The OST Group is composed of more than 30
companies and is one of Russia's largest producers of alcoholic
beverages and soft drinks. In 2004, OST Group sales were
approximately $300 million. About O-I Millions of times a day, O-I
glass containers, healthcare packaging and specialty closure
systems deliver many of the world's best-known consumer products to
people all around the world. With leading positions in Europe,
North America, Asia Pacific and South America, O-I provides
consumer-preferred products that enable superior taste, purity,
visual appeal and value benefits for our customers' products.
Established in 1903, the company employs nearly 30,000 people and
has more than 100 manufacturing facilities in 23 countries. In
2004, annual revenues were $6.2 billion. For more information,
visit http://www.o-i.com/. DATASOURCE: Owens-Illinois, Inc.
CONTACT: Kelley Yoder of O-I, +1-419-247-1388 Web site:
http://www.o-i.com/
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