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Frigoglass Expands its Glass Operations

Post Time:Apr 22,2011Classify:Company NewsView:1223

China Glass NetworkFrigoglass, the leading player in the global Ice Cold Merchandisers (Beverage Coolers) market and the largest  glass  bottle  producer  in  West  Africa,  is  pleased  to  announce  today  that  it  has  reached  an agreement to acquire 80% of the shareholding in the Dubai-based glass bottle and jar manufacturer, Jebel Ali Container Glass Factory Fze (JAG). 

 

JAG, is located in the Jebel Ali Free Zone and produces glass bottles and jars for beverage and food companies.  Since  the  start  of  operations  in  1997,  JAG  has  been  a  competitive  player  in  the international market with exports to South and East Africa, which provides a complementary regional fit for the Frigoglass Glass Operations currently focused in West Africa. Furthermore, JAG exports to Asia, the fastest growing market for glass, and to Europe, thus providing Frigoglass the opportunity to  capitalize  on  its  strong  position  in  several  markets  and  to  further  strengthen  its  customer relationships in these regions. 

 

Within its 68,000m 2  facility, JAG houses state-of-the-art machinery and equipment including the Sorg end-fired  twin-pass  regenerative  furnace,  which  was  commissioned  in  2009  and  is  highly  energy efficient with a capacity exceeding 360 tons per day. Currently, the total number of employees is 340 people with strong technical experience. JAG achieved Sales of $41.6 million in 2010. 

 

Frigoglass will acquire 80% of Jebel Ali for a cash consideration of $6.8 million assuming net debt of $23 million. The transaction, together with additional working capital requirements, is expected to be financed through new debt.

 

Frigoglass Glass Operations are based in Nigeria through the publically-traded Beta Glass PLC. With three  furnaces  and  capacity  exceeding  600  tons  per  day,  Frigoglass  is  the  largest  manufacturer  of glass bottles in West Africa. Sales are directed towards the local market and West African countries across a common customer base with its ICM business that consists of major beverage companies as well as domestic wine, pharmaceutical and cosmetic companies. 

 

Petros  Diamantides,  Managing  Director  of  Frigoglass,  commented:  “We  are  delighted  to  announce this significant opportunity to expand our Glass Operations and believe that Jebel Ali Glass offers a very attractive fit in terms of its strong technical expertise, long-standing customer relationships and attractive market presence, which will drive the continued growth of Frigoglass Glass Operations. The global glass container market is large and expanding, currently valued at approximately $27 billion.

 

Through this deal, Frigoglass will be able to increase the geographic reach of its Glass business to Europe as well as to fast growth markets such as East and South Africa and Asia, where demand for glass containers has consistently outstripped supply in recent years.”

Source: http://www.packagingeurope.com/Packaging-Europe-NeAuthor: shangyi

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