One of the world’s largest glass bottle makers, Owens-Illinois (O-I), has announced that it has signed an agreement to acquire Hebei in Northern China.

The transaction is expected to be completed before the end of 2011, as the company’s production capacity in China has risen to 100 million tons (instead of 440,000 tons), making it China’s second largest glass bottle manufacturer.

The acquisition is located in the Hebei Province, which is China’s third largest glass market, accounting for the approximately 10% of the total market. The area includes two O-I plants, which have added 270,000 tons of production capacity.

“This acquisition supports our growth potential in a strong and long-term earnings potential of the emerging market expansion strategy,” says O-I Chairman and Chief Executive Officer, Al Stroucken.