Constellation

Constellation Brands has completed the previously announced acquisition of a glass plant and associated warehouse in Nava, Mexico, from Belgian brewing company Anheuser-Busch InBev, in a $300m deal.

The company has also formed a joint-venture (JV) with Owens-Illinois (O-I) to own and operate the new glass container plant.

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O-I will also oversee plant operations, including purchasing, technical services and plant expansion.

Constellation Brands president and CEO Rob Sands said: "The acquisition of the glass plant and the formation of the JV play a significant role in our long-term glass sourcing strategy for our beer business.

"This strategy gives us greater control over our glass needs in terms of quality, flexibility and cost-effectiveness.

"We look forward to working with O-I and the employees at the glass plant to continue to provide high-quality glass for Constellation’s growing beer business.

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"O-I will also oversee plant operations, including purchasing, technical services and plant expansion."

"We are also very excited to be investing in the facility, which will likely bring new opportunities to the employees and the Nava community."

In addition, Constellation plans to expand glass production capacity at the Nava brewery from one furnace to four furnaces over the next four years.

Following the expansion, the facility will be capable of supplying more than 50% of glass packaging needs for Constellation’s US beer business.

The number of employees working at the plant is expected to increase from 260 to nearly 800.

Image: Constellation Brands headquarters in New York, US. Photo: courtesy of DanielPenfield / Wikipedia.