Saint-Gobain grabs at South American wine
Saint-Gobain has purchased control of one of the regions largest
wine bottling companies.
The French-based company has aquired BO Glass Containers SA, which is the second largest wine bottling manufacturer in Chile.
Chile is one of the worlds largest suppliers of low end wine, falling just behind Australia and California. The country faces fierce competition with its neighbor Argentina, both of which are the leading wine producers in South America.
The Drinks Business Review estimates that there will be an upsurge in the demand for South American wine. This is attributed to rising affluence on the continent and eager importers around the world.
Saint-Gobain bought 51 per cent of the Chilean company, which will soon change its name to Saint-Gobain Envases SA.
"This new position will also enable Saint-Gobain, the leading European and the world's second largest packaging glass manufacturer, to work apace with the Chilean wine industry and its remarkable growth, especially on the export market," said Saint-Gobain in a statement. "It will also speed up its growth in one of the world's most dynamic wine industries."
Saint-Gobain aquires the company as it is in the middle of building a new wine bottle plant in Rosario, which is located in the wine-producing region to the south of Santiago. This plant will have one furnace and two production lines specialized in the manufacturing of wine bottles in clear, green and dead-leaf glass.
Saint-Gobain gave no financial details concerning the purchase of the shares. The company employs over 20,000 people worldwide and has 71 manufacturing plants in Europe and the Americas.
