O-I and Constellation Brands Enter into Joint Venture and Long-Term Supply Agreement (Spanish Translation Attached)
December 16 2014 - 5:22PM
FOR IMMEDIATE
RELEASE
For more information,
contact:
David
Johnson
Lisa Babington
Vice President, Investor
Relations
Director, Corporate Communications
Perrysburg, Ohio,
US
Perrysburg, Ohio,
US
567 336
2600 567
336 1445
dave.johnson@o-i.com lisa.babington@o-i.com
O-I and
Constellation Brands Enter into Joint Venture and
Long-Term Supply Agreement
Perrysburg, Ohio (Dec 16, 2014 ) - Owens-Illinois, Inc. (NYSE: OI)
announced today that it has completed the formation of a 50-50
joint venture with Constellation Brands (STZ) to own and operate a
glass container production plant in Nava, Mexico. In October the
companies announced their intent to form the partnership, which was
subject to regulatory approval. Approvals from the Mexican Federal
Competition Commission and the U.S. Department of Justice have been
received.
The joint venture will operate the glass container
production plant in Nava that it recently purchased from
Anheuser-Busch InBev (ABI). The
plant operates under the name IVC and produces bottles exclusively
for Constellation's adjacent brewery, which makes an expanding
portfolio of Mexican beer brands for export to the United States,
including Corona Extra, Corona Light, Modelo Especial, Negra Modelo
and Pacifico. The state-of-the-art plant employs about 250 people
and first began operating in February 2014.
To accommodate Constellation's current and growing
need for glass bottles, the joint venture will expand the capacity
of the plant from one to four furnaces over the next three to four
years. A team of engineering and manufacturing experts has already
begun working on the expansion. In a related matter, O-I signed a
long-term supply agreement with Constellation to supply additional
bottles to the brewery. Supply under the agreement begins in
late 2015, ramping up significantly in the following year.
"This is an exciting and promising venture for
us," said Chairman and CEO Al Stroucken. "We are pleased to support
Constellation's growth in a way that allows both partners to
optimize their expertise and capabilities. Through the joint
venture and the long term supply agreement, we can participate in
the outstanding growth these brands are experiencing in the
U.S."
# # #
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. The Company had
revenues of $7.0 billion in 2013 and employs approximately 22,500
people at 77 plants in 21 countries. With global headquarters in
Perrysburg, Ohio, USA, O-I delivers safe, sustainable, pure,
iconic, brand-building glass packaging to a growing global
marketplace. For more information, visit www.o-i.com.
O-I's Glass Is Life(TM) movement promotes the
widespread benefits of glass packaging in key markets around the
globe. Join us in the #betteringlass conversation at
www.glassislife.com
O-I_63K_RGB
Constellation_JV_press_release_ENU_pdf
Constellation_JV_press_release_ESL_pdf
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Owens-Illinois, Inc. via Globenewswire
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