O-I to Build New R&D Center to Advance Innovation in Glassmaking

Melting and forming glass; product innovation and prototyping are core prioritiesPERRYSBURG, Ohio (September 26, 2012) - A research and development center capable of melting and forming glass in a small-scale manufacturing environment will be the centerpiece of a new facility at the Owens-Illinois, Inc., (NYSE: OI) global headquarters in Perrysburg, Ohio.

This new R&D center, which O-I announced today, will help advance new concepts and qualify emerging technologies that could revolutionize glass melting and forming.

"By significantly changing the way glass is made, we can deliver even more innovative and brand-building products for our customers, increase the efficiency of our operations and further enhance the sustainability of glass," said Giancarlo Currarino, vice president and chief technology officer.

In the future, the center will include the ability to prototype product innovations, like the company's recently launched VersaFlow(TM) jar - part of the Versa(TM) platform of functional food packages - and the game changing Vortex(TM) bottle.

This R&D center is one component of O-I's plans to invest in process and product innovation efforts. Today's announcement reflects a three-year, $35 million investment. Since 2008, investments exceeding $30 million have yielded more than 25,000 square feet of the finest research and development training laboratories in the glass container industry, and spurred the release of next generation manufacturing and inspection equipment. 

In addition to capital investment, dozens of new research scientists, engineers and technicians have laid the groundwork for significant advancements in glass R&D.

"Providing our scientists and engineers a real-world environment for research and development helps us target our efforts on the concepts with the greatest potential for impact," said Kim Houchens, Ph.D., vice president of research and development. "With this center, we can realistically test breakthrough ideas for implementation into our manufacturing environment, smoothing the transition from patent  to plant."

O-I plans to break ground on the 18,000 square-foot facility in the fourth quarter of 2012, and targets completion in late 2013. The facility will be funded, in part, by a $3 million grant offer from the Ohio Third Frontier Commission, which O-I announced in June 2012. The center will result in the creation of 45 jobs in basic sciences, engineering and technical disciplines over several years.

About O-I

Owens-Illinois, Inc. (NYSE: OI) is the world's largest glass container manufacturer and preferred partner for many of the world's leading food and beverage brands. With revenues of $7.4 billion in 2011, the company is headquartered in Perrysburg, Ohio, USA, and employs more than 24,000 people at 81 plants in 21 countries. O-I delivers safe, effective and sustainable glass packaging solutions to a growing global marketplace. For more information, visit www.o-i.com.

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