Brazilian glass container manufacturer Industria Vidreira do Nordeste (IVN) has closed its plant in the city of Estância, State of Sergipe, Brazil.

The owner blamed adverse economic conditions in Brazil, particularly in the northeast region, where IVN was operating with significant financial losses and without liquidity.

The €70 million site employed 195 staff and was only inaugurated on April 4, 2016 after two years of construction. It made glass containers for food and beverages.

The Sergipe factory operated one furnace and was expected to produce 80,000 tonnes a year, primarily for the north east region of Brazil.

The majority partner of IVN is Ipiaram Empreendimentos e Participações. Global glass container manufacturer Verallia was a minority partner with a 27% share.

Verallia said it was making every possible effort so that IVN addresses the issues arising from the suspension of its activities, in a manner satisfactory to all parties involved (employees, customers, suppliers).