Guardian Glass is set to replace a furnace at its Bascharage, Luxembourg site.
“Thanks to this new investment in Bascharage, glass production in Luxembourg will continue for the next 15 to 20 years,” said Guus Boekhoudt, Guardian Europe executive vice president.
It said the new furnace would be more environmentally friendly, technologically modern and would begin production in 2023.
In June last year the flat glass manufacturer said it would close its Dudelange, Luxembourg furnace and merge activities in Bascharage, putting nearly half its 450-strong workforce at risk of redundancy.
But as a result of talks with staff, the company signed a two-year job retention plan in August, which prioritises early retirement, training and reassignment, or furlough over job cuts.
“Guardian's investment in a state-of-the-art production facility is part of our economic policy to support the continued development of a high value-added industry that uses less energy and is more environmentally friendly,” Luxembourg economy minister, Franz Fayot, said.