O-I has agreed to enter into a 50-50 joint venture with Constellation Brands. The JV will operate the glass container production plant in Nava, Mexico, that Constellation recently agreed to purchase from Anheuser-Busch Inbev. The plant will provide bottles exclusively for Constellation's adjacent brewery, which brews a leading portfolio of Mexican beer brands for export to the US including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and Pacifico. To help meet current and rising demand from Constellation's brewery, the JV plans to expand the plant from one furnace to four over the next four years. O-I and Constellation will each initially contribute around US$100M to the JV. The capacity expansion, expected to cost around US$ 350M, will be financed by equal contributions from both partners.
