O-I Glass Announces Furnace Closure in Americas Segment

On October 21, 2024, O-I Glass, Inc. (NYSE: OI) disclosed its finalized plans for the closure of a furnace within its Americas segment as part of the Company’s Fit to Win initiative aimed at reducing redundant capacity and optimizing its network. The closure, expected to take place on or after November 18, 2024, is projected to affect approximately 150 individuals. The company plans to handle the closure in a respectful manner and will redirect the affected plant’s customers to other domestic plants within its network.

O-I Glass expects to incur charges totaling around $39 million in the third quarter of 2024 associated with this closure. The notable components of this charge include an estimated $24 million for impairment of plant-related assets, comprising the closed furnace and related machinery, along with $15 million for one-time employee separation benefits and other expenses connected to the closure, including about $10 million for future cash outlays.

The disclosure concerning the closure of the furnace under Item 2.05 is incorporated by reference into Item 2.06, which addresses material impairments.

Regarding Forward-Looking Statements, O-I Glass emphasized the inherent uncertainties and risks involved in forward-looking statements, noting that future results may vary due to factors such as political, economic, and competitive conditions, changes in consumer preferences, and operational disruptions, among others. The company stressed that forward-looking statements are not guarantees of future performance, and actual outcomes may differ from expectations.

The Company expressed that it does not assume responsibility to update or enhance forward-looking statements found in its recent Form 8-K filing dated October 22, 2024, signed by John A. Haudrich, Senior Vice President, and Chief Financial Officer.

This news is intended to provide insights into O-I Glass’ recent developments, particularly the furnace closure within its Americas segment, and the financial considerations associated with this strategic action.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read O-I Glass’s 8K filing here.

O-I Glass Company Profile

O-I Glass, Inc, through its subsidiaries, engages in the manufacture and sale of glass containers to food and beverage manufacturers primarily in the Americas, Europe, and internationally. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine.