SOUTH AFRICA – Glass producer Ardagh Glass Packaging Africa has completed the refinancing of the South African debt facilities assumed at the time of the Consol Glass acquisition in April 2022.
Under the terms of the refinancing, maturities have been extended to 2028, from 2023, and the total facilities were increased by approximately ZAR 3 billion (US$163.45m).
These facilities will support Ardagh Glass Packaging – Africa’s investment program for additional capacity, principally the construction of a third furnace (N3) at the Nigel production facility, near Johannesburg, which is expected to commence production in late 2023. They also provide increased liquidity to support the business and operations.
This refinancing was undertaken with the existing syndicate of South African banks (FirstRand Bank, Standard Bank of South Africa, Nedbank and ABSA Bank) which continued to show their support to Ardagh Glass Packaging – Africa.
This reflects the longstanding track record of the Ardagh Glass Packaging – Africa team and business, and its commitment to serving the growing demand for sustainable glass packaging in the region.
Meanwhile, the company’s investment in the third furnace will further increase the Nigel production facility’s capacity to provide sustainable glass packaging to support customers’ current and projected demand growth over the next few years.
N3 is a replica of the N2 expansion completed in 2022 and will incorporate a new furnace and additional production lines.
It will also provide significant energy, water efficiency and environmental benefits, representing another important step in the company’s journey to decarbonize the glass production process and reduce emissions, notes the company.
Following completion, the Nigel production facility will be the largest glass container production facility in its network, and on the African continent, says Ardagh.
Elsewhere, Ardagh Glass Packaging – Europe (AGP – Europe) has designed its newest glass furnace in Poland with the latest available suite of sustainable technology for reducing emissions and improving energy and resource efficiency.
Ceramic Candle Filter technology and a Continuous Emission Monitoring System have been installed to achieve and maintain low emission levels while gas, electricity and water consumption will be reduced through a combination of heat recovery, turbo compressors, water recovery and a closed-loop cooling system.
The new furnace will be highly energy efficient thanks to the conversion to a regenerative furnace, reducing gas usage and CO₂ emissions annually.
Turbo compressors will replace screw compressors, which is expected to reduce the electricity requirement by up to 25%.
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