O-I Glass has approved the closure of four furnaces, which includes a single-furnace plant, in the Americas segment. These closures are part of the company’s previously communicated Fit to Win initiative to reduce redundant capacity and begin to optimize its network. Additional furnace closures and other restructuring actions are expected later in 2024.
The furnace and plant closures are expected to occur within the next six months. O-I Glass intends to facilitate the closures in a respectful manner for the approximately 200 people impacted. Current customers of the impacted plants will continue to be served by the same plant or by other plants in the Company’s network.
Subject to finalization of certain estimates, the Company expects to record charges associated with the above closures of approximately USD 20 million in the third quarter of 2024. Major components of the charges include approximately USD 14 million for impairment of plant-related assets, such as furnaces and machinery, and USD 6 million for one-time employee separation benefits and other costs related to the closings (of which approximately USD 5 million relate to future cash expenditures).