Swiss container glass manufacturer Vetropack plans to build a facility in Italy.

It has signed a preliminary purchase agreement to buy a plot of land in Boffalora sopra Ticino to construct a new glassworks.

It will replace the existing plant in Trezzano by the end of 2021. Vetropack plans to invest around €200 million in the next three years.

Vetropack Italia, the latest subsidiary, was acquired in 2015 and is based in Trezzano sul Naviglio. In the future, however, the plant will no longer be able to meet the increasing demand and technical requirements, as well as the planned growth targets.

“We have therefore decided not to upgrade the existing facility at the end of its furnaces’ service life in 2021, especially as the size of the plot would not support further expansion,” said Johann Reiter, CEO of the Vetropack Group.

“We have looked for a larger site for a new plant nearby. We have found one in the industrial area of Boffalora sopra Ticino.”

The area identified is a former paper mill and owned by RDM Group. The glassworks in Trezzano will be closed once production is under way in Boffalora sopra Ticino. The current workforce will be transferred to the modern glassworks.

“Building Vetropack’s first greenfield site in Italy is key for our group strategy. The Italian markets play a significant role in developing our future success,” said Claude R. Cornaz, Chairman of the Board of Directors of Vetropack Holding.

“With this unique project, we are continuing to permanently improve the efficiency and quality capabilities of our production."

The groundbreaking ceremony for the new Vetropack glassworks is scheduled for the end of 2019 and the grand opening at the end of 2021.

The Vetropack Group operates eight glassworks in Switzerland, Austria, the Czech Republic, Slovakia, Croatia, Ukraine and Italy.