Saverglass has completed the purchase of MD Verre.
Saverglass bought the Vidrala subsidiary for the symbolic price of €1.
Adapting the MD Verre plant to accommodate Saverglass's new target of high-end wines will require an immediate investment programe of around €50 million over the next three years.
This financial effort was facilitated by the modest cost of MD Verre. Saverglass has invested €500 million in the past eight years
Saverglass is a French container glass manufacturer which specialises in the production of and decoration of luxury and high-end bottles for the wine and spirits industries.
MD Verre produces 160,000 tonnes of glass a year from its Ghlin, near Mons, Walloon,factory. It mainly makes entry-level wine bottles from an 84-acre site.
In October, Saverglass announced its intention to buy MD Verre
Saverglass has grown at an averege rate of 10% per year over the past 30 years, largely due to its specialisation in the booming segment of bottles and decanters designed to carry super premium spirits and fine wines.
Its Guadalajara, Mexico facility celebrated its first anniversary in June this year. The plant increased Saverglass's footprint on the American continent, leading to consolidated sales this year that have topped the symbolic milestone of €500 million.
The Ghlin location meets the immediate need for a large and efficient production capacity to support Saverglass's European presence in fine wines. The production of its Emirates plant will be mainly reoriented towards the needs of customers from the Pacific and America regions.
The transition of the Ghlin factory from mass production to Saverglass's premium products will take place in stages thanks to a contract simultaneously signed with Vidrala.
The contract will lock in the supply of a significant part of its needs for the next five years. Saverglass will embark on a major training programme to prepare Ghlin's 250 employees to develop its products, with support provided by the technical assistance of at least 100 of its 3,400 global staff from the Saverglass group.