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O-I receives £1.3m government grant to build new furnace

The Scottish Government has awarded a second grant to glass packaging manufacturing in the space of a month for a new furnace at O-I's Alloa plant.

Ardagh Glass received a £1.95m Regional Selective Assistance (RSA) award at the beginning of September to support ongoing improvements at its container glass plant in Irvine.

Jim Mather, Scotland’s minister for Enterprise, Energy and Tourism, has today (6 October) announced a £1.3m RSA award for O-I’s Alloa plant that will be used to support a £9m capital investment in a new furnace.

"The investment is key to realising the ambitions of one of Clackmannanshire’s major employers and retaining a skilled workforce," said Mather.

O-I Alloa employs more than 450 people and supplies glass packaging to the Scotch whisky industry. The new furnace will increase capacity and improve the plant’s efficiency and operating cost base.

Jorge Hernandez, manufacturing vice president at O-I Europe, said: "Modern furnace technology gives us lower energy use, lower CO2 emissions and higher productivity.

"This grant enables us to enhance our service to the Scotch whisky industry and develop products which meet fresh market demands, like the manufacture of lightweight bottles for the wine industry and non-alcoholic drinks."

The Regional Selective Assistance award was made through Scottish Enterprise, which is working with international arm Scottish Development International to attract investment in Scotland.