The transaction is expected to be completed before the end of the year, meaning that OI has in the past year, its production capacity in China more than doubled, reaching 100 million tons (instead of 440,000 tons), enabling the company to become China´s second largest glass bottle manufacturer.
The acquisition is located in the rapid development of China´s Hebei Province, Beijing / Tianjin area, including two plants for the OI added 270,000 tons of production capacity. Hebei is China´s third largest glass market, accounting for the glass about 10% of the total market. Newly acquired plant for the rapid development of China´s domestic beer market production of glass bottles. 2015, China´s domestic beer market is expected to reach 573 million hectoliters, is the world´s second-largest beer market in the United States more than twice.
OI Chairman and CEO Al Stroucken said: "This acquisition supports our growth potential in a strong and long-term earnings potential of the emerging market expansion strategy. We are currently operating in China, including eight and a glass factory located in Tianjin, the factory produced glass molds. The latest acquisition of the factory´s production cost is lower than our existing operations in China, factories, so that we can expand our operations outside the high-end market, the rapid development of the mass into the beer market. "
Before the announcement of the acquisition today, the company recently in May, respectively, in China´s Sichuan province, in October in Guangdong Province have also been acquired. In addition to increasing production capacity outside of OI, this acquisition also enhances the company´s leading beer brands in China, among the customer base, such as Tsingtao, Yanjing and the world´s largest beer brand Snow Resources Snow Breweries owner.
OI Asia Pacific president, said the latest acquisition further GregRidder consolidated OI in China, especially beer market. He said: "The acquisition of our existing production in China were added, increasing our product range and portfolio, and significantly improved our larger Beijing / Tianjin area of influence. Many of our customers in this region for development, so we are here to influence the business so that we can work with them as well as new customers. "