Owens-Illinois to invest in Novgorod glass factory

OI Finnish Holdings Oy and Karhulan Lasi OY in Finland, part of Owens-Illinois of the US, intend invest US$ 27.2 million in the construction of a beer-bottle plant in Veliky Novgorod, the Novgorod reg…

OI Finnish Holdings Oy and Karhulan Lasi OY in Finland, part of Owens-Illinois of the US, intend invest US$ 27.2 million in the construction of a beer-bottle plant in Veliky Novgorod, the Novgorod regional administration told Interfax. Owens-Illinois is the world“s largest glass container producer. The new company will produce over 240 million bottles a year with annual sales expected to top US$ 17 million. The plant should open for business next year and reach its projected capacity in 2006. The project“s recoupment period is figured at six and a half years. Major breweries in Moscow, St Petersburg and the Moscow region are expected to be the plant“s main customers. The sources noted that a company set up by OI Finnish Holdings Oy and Karhulan Lasi OY has been registered with the regional administration for the purposes of carrying out the construction project.