CHISINAU, Moldova, December 17, 2018
CHISINAU, Moldova, December 17, 2018 /PRNewswire/ --
Glass Container Company (the "Company" or "GCC"), a Moldova-based independent glass products manufacturer, announced the launch of a comprehensive upgrade of existing production facilities. The €17 million project is co-financed by the European Bank of Reconstruction and Development ("EBRD") and Mobiabanca - Groupe Société Générale, as part of the European Investment Bank's Filière du Vin project, which jointly committed €12.5 million in loans. The financing is supported by a guarantee and technical assistance program funded by the European Union.
The project, structured in two phases, will increase the output of GCC's furnace from 50 to 80 thousand tons per year once fully completed. Jointly with Glass Container Prim ("GCP"), GCC's sister-organization, total pull capacity will increase from the current 100 thousand tons, to 160 thousand tons per year, with the number of production sections increasing from 36 to 56. The reconstruction will support GCC's transition to NNPB technology, as well as includes single, double and triple gob functionality. This will enable GCC to expand their segment capabilities to small format jars, large containers, light beer bottles, as well as tap high-growth market niches including mineral water and baby food, among others.
The upgrade will also lead to significant energy and material savings for the Company. It builds on a series of recent improvements, targeting sales and marketing capabilities, as well as an effort focused on automations in the finance function. These investments were supported by the European Union and facilitated by the EBRD, which has mobilized a team of international experts to advise the Company.
"This is truly a transformational project for GCC, which will enable us to significantly upgrade our capacity to meet growing customer demand, while also delivering high quality products and maximizing operational efficiency. The shortage of glass container capacity in Europe is evident. As consumers increasingly shift away from plastic packaging, the glass market has seen a robust growth over the last years, which is expected to continue in the mid to long term. With over 60% of our production exported to 28 countries worldwide, we have already demonstrated our competitiveness in servicing more distant geographies. With this new equipment, our competitive advantage will only increase. We are privileged to be supported in this reconstruction by EBRD and Groupe Société Générale, in what is truly a ground-breaking project for the regional glass market," said Oleg Baban, CEO.
About Glass Container Company
GCC is a leading glass containers manufacturer in CEE, serving customers in Romania, Moldova, Italy, France, Hungary, Greece, Ukraine, Georgia and other CEE and Western European markets. The Company has been traditionally focused on the wine, spirits and beer segments, counting over 100 customers and more than 200 container types in its portfolio. GCC has built a particularly strong expertise in special-design bottles, offering clients a one-stop-shop solution for all their glass container needs, from research, to design, to manufacturing and add-on services, like serigraphy and painting. The Company's largest shareholder is Western NIS Enterprise Fund, a $150 million U.S. government-backed fund.
Chief Financial Officer