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O-I Glass completes £150 million upgrade at Alloa facility

O-I Glass has unveiled an upgrade to its historic Alloa manufacturing site following a £150 million investment in its technology.

First Minister Kate Forbes, O-I Glass, Alloa facility, recycled glass
Image credit: O-I Glass

The overhaul, which included the rebuild of one furnace and the installation of a brand-new furnace, marks a step in the company’s efforts to modernise and decarbonise its Scottish operations.

The new furnaces are expected to increase the amount of recycled glass that can be used in the production process.

They will also adopt gas-oxygen combustion technology, which is expected to increase heat transfer and melt glass faster, making the process more efficient.

To support the furnaces, O-I has also invested in an oxygen production facility adjacent to the Alloa site. The “oxygen farm” will separate air into oxygen, nitrogen and argon to provide inputs for the new furnace design.

The company expects both furnaces to be fully operational in 2025.

Anthony Williams, UK Managing Director of O-I Glass, said: “The new furnace represents the next generation of glass manufacturing – improving efficiency, cutting carbon, and securing the long-term future of glass production in Scotland.

“It also strengthens our role in Scotland’s circular economy, ensuring that glass continues to set the standard for sustainable, infinitely recyclable packaging.”

First Minister visits Alloa site

In addition to the furnace work, O-I Glass is installing an 8 MW battery storage system at the Alloa facility in collaboration with GridBeyond.

This AI-powered energy management system (EMS) is expected to charge when renewable electricity is plentiful and discharge at peak demand times.

Scotland’s Deputy First Minister Kate Forbes visited the Alloa plant to inspect the upgrades.

Forbes commented: “Using technology which is the first of its kind in Scotland, O-I Glass is leading the way in sustainable glass production.

“This is a great example of how Scotland’s manufacturing sector is driving innovation to deliver a green future.

“The Scottish Government provided £1.4 million through our Scottish Industrial Energy Transformation Fund towards the conversion of a furnace which reduces carbon emissions by more than 7000 tonnes per year.

“The company’s longstanding commitment to Alloa, and its recent investment of more than £150 million at the site, is not only vital to local jobs but serves Scotland’s multi-billion pound food and drink sector which is central to our economy.”

Keith Brown MSP (Clackmannanshire and Dunblane), Leader of Clackmannanshire Council Councillor Ellen Forson and Councillor Scott Harrison also visited the site.

The Alloa plant is located in one of Scotland’s longest-established industrial sites, with roots stretching back more than 275 years.

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