JUNE 2011
                                        

Frigoglass expands operations

Frigoglass, a glass bottle producer in West Africa, has reached an agreement to acquire 80 percent of the shareholding in the Dubai-based glass bottle and jar manufacturer, Jebel Ali Container Glass Factory Fze (JAG).

JAG is located in the Jebel Ali Free Zone and produces glass bottles and jars for beverage and food companies. Since the start of operations in 1997, JAG has been a competitive player in the international market with exports to South and East Africa, which provides a complementary regional fit for the Frigoglass glass operations currently focused in West Africa. Furthermore, JAG exports to Asia, the fastest growing market for glass, and to Europe, thus providing Frigoglass the opportunity to capitalize on its strong position in several markets and to further strengthen its customer relationships in these regions.

Within its facility, JAG houses state-of-the-art machinery and equipment including the Sorg end-fired twin-pass regenerative furnace, which was commissioned in 2009 and is highly energy efficient with a capacity exceeding 360 tons per day.

Currently, the total number of employees is 340 people with strong technical experience. JAG achieved sales of $41.6 million in 2010.

Frigoglass will acquire 80 percent of Jebel Ali for a cash consideration of $6.8 million assuming net debt of $23 million. The transaction, together with additional working capital requirements, is expected to be financed through new debt.