Arglass to invest in increased recycling capacity

In what should provide a boost to the Southeastern United States glass recycling market, Arglass, a recycled-content glass containers manufacturer, intends to deploy some $230 million in capital to build a second furnace on its glass bottle and jar manufacturing campus in Valdosta, Georgia.

The company says the investment will include the construction of a new furnace expected to produce more than 350 million glass containers per year. Arglass, based in Valdosta, says part of the funding also will go toward an on-site postconsumer glass recycling plant to produce cullet for use in the production of new containers.

Arglass says it expects the expansion project to be completed in the second quarter of 2025.

“This state-of-the-art manufacturing plant will embody the future of glass with a fully integrated production network,” the company says, including the presence of a fully automated closed-loop production and quality assurance process.

“Our new furnace will aim to further establish Arglass as the most innovative, flexible and sustainable glass manufacturer in North America,” Arglass Chair and CEO José de Diego Arozamena says. “Glass is already the most sustainable, recyclable and healthy packaging material, and the only packaging material classified as ‘generally recognized as safe’ by the [United States] Food and Drug Administration. I am incredibly proud to be leading the industry to new heights in sustainability.”

In addition to the onsite recycling center, Arglass it plans to use hydrogen energy to reduce CO₂ emissions and what it calls a closed-loop water system.

“In addition to the industry advancements this new facility will create, we also intend to bring 150 new jobs to the Valdosta area,” says Tony Krznâr, vice president of operations at Arglass. “I look forward to working with the community at large to keep integrating with the beautiful tapestry of Georgia.”

Last December, Arglass completed a buyout of previous majority stakeholder Yamamura Nihon Yamamura Glass Co. Ltd. of Japan. The transaction restored ownership of the company to its founders, including Arozamena, according to the firm.

The project has been supported by the Valdosta Lowndes Development Authority and the Georgia Department of Economic Development, and Arglass plans to hold a groundbreaking ceremony on its campus in Valdosta.

New York-based Investment bank Jefferies acted as financial advisor for Arglass while New York-based Orion Infrastructure Capital (OIC) and several other institutional investors provided funding.

“Our newly formed capital partnership will accelerate Arglass’ innovative growth and transformation of the glass industry in North America while also representing OIC’s continued investment conviction in sustainable domestic packaging infrastructure,” says Chris Leary, investment partner and head of infrastructure equity at OIC.