O-I Glass to Invest $65 Million in Electrification and Decarbonization in Veauche, France
O-I Glass will invest $65 million to electrify and decarbonize its Veauche plant in France, marking a major sustainability initiative. A state-of-the-art hybrid-flex furnace will replace up to 70% of fossil-fuel-based energy with electricity, reducing CO2 emissions by 43% at 50% electricity usage. The plant will also implement a heat recovery system, supplying up to 94% of its heating needs. These improvements align with O-I’s goal to cut greenhouse gas emissions by 25% by 2030. Expected to complete by December 2025, the upgraded plant will lower CO2 emissions by 35% compared to pre-2020 levels while producing 300 million bottles annually.
- O-I Glass will invest $65 million in sustainability, electrification, and decarbonization.
- Introduction of hybrid-flex technology reduces CO2 emissions by 43% at 50% electricity usage.
- Heat recovery system to supply up to 94% of plant’s heating needs, improving energy efficiency.
- Investment aligns with O-I’s goal of reducing greenhouse gas emissions by 25% by 2030.
- Expected to complete by December 2025, making the Veauche plant one of the most sustainable sites globally.
- Plant will reduce CO2 emissions by 35% versus pre-2020 levels.
- Plant produces 300 million bottles annually, meeting high demand from premium markets.
- Local circular economy benefits, with 87% recycled glass sourced within 20 km.
- High investment cost of $65 million, which may impact short-term financials.
- Implementation period until December 2025, delaying immediate efficiency gains.
- Dependence on successful integration of new hybrid-flex technology, which may pose technical risks.
Insights
O-I Glass's investment in hybrid-flex technology is a notable step in addressing environmental concerns tied to industrial operations. By integrating this technology, they project a
Furthermore, the addition of a carbon-lowering heat recovery system enhances this commitment. By supplying up to
In the broader context, such initiatives could set a benchmark for the glass industry, potentially influencing regulatory norms and peer practices. For retail investors, this makes O-I Glass a company with a forward-thinking approach to environmental stewardship, which can be a key differentiator in today's market.
From a financial perspective, O-I Glass's
This move also enhances O-I Glass's appeal to environmentally conscious investors and customers, particularly in premium markets like champagne, spirits and wine. The potential for reduced logistics costs due to the plant's strategic location further underscores the smart positioning of this investment.
Retail investors should note that while the immediate financial impact may not be significant, the long-term benefits include operational cost efficiencies, improved brand image and potential market share gains in the premium segment.
- Hybrid flex technology and heat recovery systems to advance sustainability
- First O-I plant globally to feature hybrid furnace
- Flexibility to operate furnace with
30% -70% electricity
- 43% less on-site CO2 emissions from hybrid-flex technology
PERRYSBURG, OH/VEAUCHE, FRANCE, June 18, 2024 (GLOBE NEWSWIRE) -- O-I Glass, Inc. (“O-I Glass” or “O-I”) plans to invest approximately
The investment is consistent with O-I's sustainability strategy and the company’s previously announced investment plan into plant upgrades.
Along with the decarbonization impact, the new technology is set to further reduce NOx emissions on top of the effects from the high performing DeNOx system already installed on site.
In parallel to the construction of the new hybrid furnace, O-I also plans to install a carbon-lowering heat recovery system in the plant. Heat recovered from the furnace will feed a new internal energy distribution network and will supply up to
With 2 furnaces and 7 lines, the O-I plant in Veauche produces approximately 300 million bottles each year. It is a role model for a local circular economy leveraging up to
"This hybrid flex technology represents another step forward in improving the sustainability profile of our plants. Not only is the glass we produce infinitely recyclable and healthy, our approach to producing it is holistic, and we can see it here technologically, and energy-wise, as well as through partnerships we have with local communities and customers.” says Randy Burns, Chief Sustainability Officer for O-I.
“These investments are set to increase O-I’s flexibility to serve premium customers with high quality and more sustainable glass, improve the company’s environmental footprint and meet our customers’ demand.” shares Walter Ferrer, Managing Director Southwest Europe.
About O-I Glass
At O-I Glass, Inc. (NYSE: OI), we love glass and we’re proud to be one of the leading producers of glass bottles and jars around the globe. Glass is not only beautiful, it’s also pure, healthy, and completely recyclable, making it the most sustainable rigid packaging material. Headquartered in Perrysburg, Ohio (USA), O-I is the preferred partner for many of the world’s leading food and beverage brands. We innovate in line with customers’ needs to create iconic packaging that builds brands around the world. Led by our diverse team of approximately 23,000 people across 68 plants in 19 countries, O-I achieved revenues of
Forward-Looking Statements
This press release contains “forward-looking” statements related to O-I Glass, Inc. (“O-I Glass” or the “company”) within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements reflect the company’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward-looking statements.
It is possible that the Company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) the general political, economic and competitive conditions in markets and countries where the Company has operations, including uncertainties related to economic and social conditions, trade disputes, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates and laws, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (2) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current Ukraine-Russia and Israel-Hamas conflicts and disruptions in supply of raw materials caused by transportation delays), (3) competitive pressures, consumer preferences for alternative forms of packaging or consolidation among competitors and customers, (4) changes in consumer preferences or customer inventory management practices, (5) the continuing consolidation of the Company’s customer base, (6) the Company’s ability to improve its glass melting technology, known as the MAGMA program, and implement it within the timeframe expected, (7) unanticipated supply chain and operational disruptions, including higher capital spending, (8) seasonability of customer demand, (9) the failure of the Company’s joint venture partners to meet their obligations or commit additional capital to the joint venture, (10) labor shortages, labor cost increases or strikes, (11) the Company’s ability to acquire or divest businesses, acquire and expand plants, integrate operations of acquired businesses and achieve expected benefits from acquisitions, divestitures or expansions, (12) the Company’s ability to generate sufficient future cash flows to ensure the Company’s goodwill is not impaired, (13) any increases in the underfunded status of the Company’s pension plans, (14) any failure or disruption of the Company’s information technology, or those of third parties on which the Company relies, or any cybersecurity or data privacy incidents affecting the Company or its third-party service providers, (15) risks related to the Company’s indebtedness or changes in capital availability or cost, including interest rate fluctuations and the ability of the Company to generate cash to service indebtedness and refinance debt on favorable terms, (16) risks associated with operating in foreign countries, (17) foreign currency fluctuations relative to the U.S. dollar, (18) changes in tax laws or U.S. trade policies, (19) the Company’s ability to comply with various environmental legal requirements, (20) risks related to recycling and recycled content laws and regulations, (21) risks related to climate-change and air emissions, including related laws or regulations and increased ESG scrutiny and changing expectations from stakeholders and the other risk factors discussed in the Company's filings with the Securities and Exchange Commission.
It is not possible to foresee or identify all such factors. Any forward-looking statements in this document are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance, and actual results or developments may differ materially from expectations. While the Company continually reviews trends and uncertainties affecting the Company’s results of operations and financial condition, the Company does not assume any obligation to update or supplement any particular forward-looking statements contained in this document.
FAQ
What is O-I Glass investing in at its Veauche plant?
How much will O-I Glass reduce CO2 emissions with its new hybrid-flex technology?
When will the upgrades at the O-I Glass Veauche plant be completed?
What are the benefits of the new heat recovery system in the O-I Glass Veauche plant?
How does the investment at the Veauche plant align with O-I’s sustainability goals?
What is the economic impact of the investment on the Veauche plant?
How much recycled glass does the Veauche plant use?
