The future of Clackmannanshire’s largest employer has been secured after officials at Scottish Enterprise agreed to offer a significant seven-figure sum to glassware manufacturer Ohio-Illinois.
The Courier understands the fresh funding of almost £4 million will allow the multinational group to invest in new technology at its Alloa factory following the loss of a major contract earlier this year.
The regional selective assistance grant is expected to form part of what the group said was a “multiple-year investment plan” for the bottle manufacturing plant on the banks of the Forth.
“This investment plan includes technology advancements, such as light-weighting capabilities, while continuing to upgrade design and decoration capabilities to support growing customer needs to differentiate brands and packaging,” a spokesman said last night.
“O-I is pleased to have this strong support from Scottish Enterprise for our proposed investment plans in Alloa ensuring the long-term prosperity of our facility, our community and the Scottish drinks industry as a whole.”
The plant, on Alloa’s Glasshouse Loan, lost an important contract with Johnnie Walker maker Diageo earlier this year after the drinks giant conducted a review of its supply arrangements.
Although Diageo said it would continue to be a “major customer”, the move saw the O-I plant lose a considerable proportion of its regular work and prompted talks over its future.
The firm has previously invested heavily in the plant with a total of £9m, including £1.3m from the Scottish Government, ploughed into facilities there in 2010.
Last night the O-I spokesman said the group was winning more and more business from soft drinks producers, alongside traditional markets in whisky and other spirits.
“O-I’s Alloa facility increasingly supports the developing needs of Scotland’s beer and soft drinks markets; offering a glass packaging solution which helps customers differentiate their brands and improve their environmental performance,” he said.
“With more than 260 years of heritage behind it in Scotland, O-I remains committed to the local community by offering almost 600 jobs in Alloa and through local raw material and energy sourcing.”
A spokeswoman for Scottish Enterprise confirmed the business development agency had been in detailed talks with the Perrysburg-headquartered giant.
“We have been working closely with O-I and hope to be in a position to confirm our support in due course,” she said.
Clacks and Dunblane MSP Keith Brown said he was delighted that the company stood to benefit from around £3.9m in support.
“This is fantastic news, not only for O-I but for Clackmannanshire too, as this funding will play an important part in securing the future of one of Clackmannanshire’s major employers, and will support improvements to the Alloa plant which see the facilities adapted to meet future industry demand,” he said.
Meanwhile, Clackmannanshire Council leader Gary Womersley said his authority was pleased to have helped produce a “successful outcome”.
O-I is the world’s largest glass container manufacturer, and employs around 22,500 people at 79 plants in 21 countries. Revenues reached $7 billion in the year to the end of December.