Tecnoglass has purchase of a minority ownership interest in Vidrio Andino, a Colombia-based subsidiary of Saint-Gobain.
It means Vidrio Andino will now build a $45 million float glass plant in Colombia.
The plant will be built in Galapa, near Barranquilla and approximately 12 miles from Tecnoglass’s manufacturing operations.
The new facility will have production capacity of 750 metric tons per day of float glass and will be completed in 2021.
Tecnoglass said it would benefit from access to ample float glass supply for anticipated growth, with Vidrio Andino more than doubling its float glass production capacity.
Purchasing costs would be reduced through expanded scale in its float glass procurement, elimination of raw material waste, and lower inbound transportation costs given Galapa’s closer proximity to Barranquilla.
It would also control nearly its entire production process, driving increased efficiency to provide enhanced service and improved lead times to customers.
The initial $45 million investment into the joint venture from Tecnoglass will be used to fund a portion of the construction cost for the new manufacturing facility near Barranquilla, which is expected to total approximately $160 million to 2022.
