O-I Glass (NYSE:OI) Announces Plans for European Furnace Closures

O-I Glass, Inc. revealed its decision to close two furnaces within its European segment as part of the company’s Fit to Win initiative. The closures aim to reduce redundant capacity and optimize its operational network. Additional closures and corporate restructuring activities are anticipated throughout the fourth quarter of 2024 and into 2025.

The closure of the furnaces in the European segment is scheduled to take place on or after January 15, 2025. O-I Glass intends to ensure a respectful process for the approximately 100 individuals affected by these closures. Customers previously served by the impacted plants will be catered to by other European facilities within the company’s network. Estimated charges related to these closures are expected to total around $72 million in the final quarter of 2024. The significant components of these charges include approximately $40 million for plant-related asset impairments and $32 million for employee separation benefits and expenses associated with the closures, of which about $24 million are projected to be future cash expenditures.

Additionally, a severance program has been greenlit by O-I Glass, anticipated to reduce future selling, general, and administrative costs within the European segment. An approximate charge of $18 million is expected in the fourth quarter of 2024, with the majority of these expenses being allocated to cash severance payments estimated to be disbursed within the initial six months of 2025.

Forward-looking statements within this report highlight the possible divergence of future results from current expectations due to various factors. These include economic and competitive conditions across markets, raw material availability, changes in consumer preferences, operational disruptions, and risks associated with debt management and technological systems, among others. O-I Glass does not assume responsibility to amend or supplement forward-looking statements outlined in this report.

As of December 17, 2024, the report was duly signed by John A. Haudrich, Senior Vice President and Chief Financial Officer of O-I Glass, Inc.

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.