O-I Glass pledges US$65M for eco-friendly glass manufacturing

FRANCE – O-I Glass, Inc. has announced plans to invest approximately US$65 million in the electrification and decarbonization of its plant in Veauche, France.

This move aligns with O-I Glass’s sustainability efforts and its previously announced investment in plant renovations.

The company plans to completely renovate and upgrade one of its two furnaces with innovative hybrid-flex technology.

The new furnace will include heat recovery and an air preheating system, increasing efficiency and lowering energy consumption and emissions.

This transformation is expected to replace up to 70% of traditional fossil-fuel-based energy with electricity.

At an average 50% electricity level, on-site CO2 emissions are predicted to fall by 43% compared with a standard furnace, contributing significantly to the company’s global goal of reducing greenhouse gas emissions by 25% by 2030.

A heat recovery system will also be implemented to further reduce the plant’s carbon emissions. Both investments are expected to be completed by December 2025.

These improvements will enhance O-I’s ability to supply premium customers with high-quality, more sustainable glass, improve the company’s environmental footprint, and better position it to meet customer demand.

Upon completion, the Veauche plant aims to reduce CO2 emissions by up to 35% from pre-2020 levels, making it the most contemporary and sustainable O-I Glass site.

Built in 1882, the Veauche facility features two furnaces and seven lines and manufactures around 300 million bottles per year.

O-I Glass reported first-quarter 2024 earnings per share of 45 cents, beating the Zacks Consensus Estimate of 36 cents.

However, earnings plunged 65% year-over-year, reflecting lower volumes due to weak consumer demand and inventory destocking across the value chain.

Revenues were US$1.59 billion for the quarter, down 13% from the previous year and missing the Zacks Consensus Estimate of US$1.71 billion. The downside was driven by lower segmental operating profit and higher interest expenses.

Earlier this year, the company invested €95 million (US$102.95m) in two of its French glass packaging production facilities.

The objective is to enhance sustainability, flexibility, and productivity at the Gironcourt-sur-Vraine and Reims operations in accordance with its updated ESG roadmap and capital spending plan.

At Gironcourt-sur-Vraine, which celebrated its 120th anniversary, €55 million (US$59.60m) will be invested in collaboration with a key customer to reconstruct a furnace and outfit it with innovative oxy-gas advanced technology.

This technology, already operational at the O-I plant in Vayres, France, uses a blend of gas and oxygen to heat the furnace, reducing carbon dioxide (CO₂) emissions by up to 18%.

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