O-I expands operations in China

Owens-Illinois has entered into an agreement to acquire Zhaoqing Jiaxin Glasswork, in the Pearl River Delta region of Guangdong Province in China.

This single-plant operation produces more than 350 million glass bottles and jars annually and complements O-I’s existing operations in Guangdong.

“This acquisition demonstrates our continued commitment to expanding in emerging markets with strong growth potential,” said Al Stroucken, O-I Chairman and CEO. “As the world’s fastest growing economy, China is a key component of our global growth strategy that promotes the use of glass as the most sustainable packaging choice.”

O-I has entered into a contract to buy 80% of Zhaoqing Jiaxin Glasswork. The transaction, which already has government approval, is expected to be completed by mid-November.

The newly acquired company, which will be renamed O-I Zhaoqing Glass Co, employs more than 700 people and produces glass packaging for the beer, food and non-alcoholic beverage segments.

O-I Asia Pacific President Greg Ridder said the acquisition serves to further strengthen O-I’s presence in this important regional market in the southern part of China.

“Zhaoqing has an experienced management team and strong customer relationships. We look forward to integrating this plant into our other operations, and we see further growth potential as we introduce O-I’s technology and industry knowledge,“ said Ridder.