US-based maker of glass packaging, Owens-Illinois has entered into an agreement to acquire the glass container manufacturing business of Hebei Rixin Glass Group in Northern China.
The acquisition includes two plants and delivers an additional 270,000 tonnes of capacity for O-I.
The newly acquired plants produce glass containers predominantly for China’s rapidly growing domestic beer market.
O-I Chairman and CEO Al Stroucken said the acquisition supports its strategy of expanding in emerging markets with strong growth and long-term earnings potential.
"Our operations in China now include eight glass manufacturing plants, as well as a plant in Tianjin that produces moulds for glass manufacturing," Stroucken added.
O-I Asia Pacific president Greg Ridder said the acquisition further strengthens its position in China’s beer market and adds to the product range and mix.
The deal, expected to close before 2010, means O-I has more than doubled its capacity in China in the past year to more than one million tonnes.