Glass packaging maker Owens-Illinois, Inc. (OI) announced on 14 May 2010 a joint venture with Thailand“s Berli Jucker Public Co. Ltd. (BJC) to expand the firm“s presence in China and Southeast Asia….
Glass packaging maker Owens-Illinois, Inc. (OI) announced on 14 May 2010 a joint venture with Thailand“s Berli Jucker Public Co. Ltd. (BJC) to expand the firm“s presence in China and Southeast Asia. Owens-Illinois said that the joint venture has entered into an agreement to purchase Fraser & Neave Holdings Bhd.“s Malaya Glass operations for USD 221.7 million after consideration of debt and minority interests. O-I“s portion of the purchase price was USD 132.4 million. O-I expects the acquisition to have an immediate positive impact on its earnings. Malaya Glass operates plants in Sichuan Province, China; Saraburi Province, Thailand; Johor Bahru, Malaysia; and Ho Chi Minh City, Vietnam. The four plants produce containers for the beer, non-alcoholic beverage and food markets and employ about 1,900 people. In fiscal 2009, Malaya Glass recorded sales of USD 126 million. Following the acquisition, a joint venture owned 50-50 by O-I and BJC will operate the plants in Malaysia and Vietnam. O-I China“s existing operations will manage the acquired interest in the Chinese plant. Meanwhile, BJC will assume majority ownership of the Thai operation. Deutsche Bank advised O-I and BJC in connection with the Malaya Glass acquisition. O-I stated that both companies have a long history of successful collaboration. BJC licenses O-I“s proprietary technology in its Thai Glass operations. O-I had previously announced plans to grow through strategic acquisitions and joint ventures in regions with rapidly growing markets. In March 2010, the company announced the acquisition of a majority share in Cristalerias Rosario as part of entering the Argentinean market.