O-I Glass plans to invest up to $680 million in new investments in the 2022-24 period.

The world’s largest container glass manufacturer said the investment would address supply-constrained geographies and categories.

In a statement to investors, CEO Andrea Lopez said the investments are expected to generate a 20% average internal rate of return.

He said that in addition to a current project underway in Colombia, plans include up to 11 MAGMA lines.

Three lines will each be located in Peru, Brazil, the US, with a further two in the UK.

The company said the investments will expand O-I’s franchise position in high growth and high value markets in Latin America and the oversold spirits category in the US and UK.

Mr Lopez said: “Glass containers are a great product that have been trusted for thousands of years. Building off this enduring legacy, glass is more relevant than ever given consumer preferences for health, wellness and sustainability.

“To meet the packaging market’s evolving needs, we will continue to transform the company, and with our MAGMA solution, O-I will redefine the glass production process for decades to come.”

“MAGMA will further enhance our capabilities to support many of these categories and expand in the highly differentiated product segments, which are aligned to changing consumer preferences.

“MAGMA also is more flexible and scalable and further improves glass’ position as the most sustainable packaging material available.

“With MAGMA, we can quickly add capacity in smaller increments, closer to our customers, and at lower capital intensity. This new capability will increase O-I's right to win in the more differentiated markets.

"It will enable the company to grow in existing markets and enter new markets with greater flexibility. We are ready to deploy MAGMA, achieve the full potential of glass, and enable profitable growth.

“We have a great product in an attractive market. As part of our transformation, we are developing breakthrough innovations to meet the future requirements of packaging and generate profitable growth.

Initial MAGMA expansion initiatives will use MAGMA Generation 1 and Generation 2 capabilities. The company expects to complete the development of a Generation 3 solution for deployment in 2025.