O-I Glass temporarily idled eight glass manufacturing facilities in the US and Mexico due to recent severe weather conditions.
Access to natural gas and electricity, which are key inputs for the business, was curtailed and meant facilities in Texas, Oklahoma and Mexico were idled.
“While the situation was most acute in Texas, Mexico was also significantly impacted as Texas supplies natural gas to the country,” said CEO Andres Lopez.
“In response, the O-I team took swift and proactive measures to preserve our asset base and minimise the impact of this unexpected situation.
“Understanding the situation remains very fluid, the company currently anticipates lower shipment and production levels as well as higher energy and transportation costs in these markets compared to original expectations for the first quarter of 2021.”
O-I, the world’s largest container glass manufacturer, has facilities located in Muskogee, Oklahoma; Waco, Texas; as well as a Packaging Solutions plant in Plano, Texas as well as five production plants in Mexico.
It also jointly operates the IVC site in northern Mexico.
Mr Lopez added: “On an encouraging note, conditions are beginning to normalise, and we are working to quickly ramp up production at the affected plants.
“Excluding the impact of the severe weather, global shipments in February have been in-line with the prior year, despite continued pandemic related lockdowns in a few markets.
"This represents an improvement in demand trends from January which was impacted by supply chain adjustments. Likewise, very good operating conditions continue across our operations.”