Glass packaging provider Owens-Illinois (O-I) has completed previously announced acquisition of Nueva FÃ brica Nacional de Vidrio (Nueva Fanal) in Mexico for around $188m (£148.4m).

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Image: O-I has acquired Nueva Fanal glass packaging facility in Mexico. Photo: Image by Manfred Richter from Pixabay.

Nueva Fanal operates a glass packaging facility near Mexico City, which will help O-I to expand its operations in the region.

Nueva Fanal facility features four furnaces that produce and supply around 300,000 tons of glass containers per annum for Grupo Modelo brands such as Corona, Modelo Especial and Pacifico.

O-I has also signed a long-term agreement to continue to supply glass to Grupo Modelo.

O-I CEO Andres Lopez said: “In acquiring Nueva Fanal, O-I continues to execute its strategy of investing in the growth of sustainable glass packaging, specifically premium brands, such as Corona, one the most popular and fastest growing beer brands globally.”

Lopez added: “We are pleased to close this transaction and will be actively working to achieve the operational and financial synergies we believe this acquisition creates.

“We welcome Nueva Fanal’s employees into the O-I family and are planning a successful integration of the facility into our Americas region.”

O-I said it expects the business to contribute around $140m (£110.8m) of revenue and $40m (£31.6m) earnings before interest, tax, depreciation and amortisation (EBITDA) on an annual basis.

Employing more than 26,500 people at 77 plants in 23 countries, O-I is engaged in producing glass bottle and jars for customers in food and beverage industries.

The company manufactures glass packaging for different products such as beer, wine, spirits, food and non-alcoholic beverages.

In April 2019, O-I has partnered with new non-profit, Glass Recycling Foundation, which focuses solely on funding glass recycling initiatives.

GRF works closely with the Glass Recycling Coalition (GRC), which comprises about 40 members of the end-to-end glass recycling value chain.

In November 2018, O-I purchased a 49.7% stake in Empresas Comegua from Fabricación de Mà quinas.

Empresas Comegua is involved in the manufacturing of glass containers for the Central American and Caribbean markets.

It serves multiple O-I’s global strategic customers and various segments such as food, soft drinks, beer, spirits and pharmaceuticals.