O-I Glass has unveiled plans for global investments of up to $680 million that could add 700,000 tons of extra glass packaging capacity.

The company plans to focus on expanding premium products in its franchise-leading position in Latin America and high value spirits 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. We are embracing and executing change. Our investment in the innovative MAGMA solution represents a major leap that will accelerate O-I’s transformation,” said Andres Lopez, CEO of O-I Glass. 

MAGMA is a breakthrough solution by O-I that reinvents how glass containers are made. MAGMA lines are flexible and scalable and will improve the company’s ability to expand in highly differentiated product segments that are aligned to changing consumer preferences.

Through the installation of MAGMA lines, O-I will have the ability to more quickly add capacity in smaller increments closer to customers.

The investments will include $100 million on the expansion at O-I’s facilities in Colombia and up to $580 million in targeted markets, including: two additional greenfield sites with up to three MAGMA lines in Brazil; up to three MAGMA lines at the facility in Lurin, Peru; up to two MAGMA lines in Alloa, Scotland; a new greenfield site in the US with up to three MAGMA lines; and a heritage line extension in Canada.

The MAGMA expansion initiatives will leverage first- and second-generation capabilities as the company expects to complete the development of Gen 3 MAGMA solutions for deployment in 2025.

“Our goal has always been to redefine glass making 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,” said Lopez. “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.”

o-i.com

Image: Andres Lopez, CEO of O-I Glass