Owens-Illinois seals healthcare plastics joint venture in Mexico

The joint venture, O-I Pavisa S.A. de C.V., is between O.I. HealthCare Packaging de Mexico and Pavisa Industries. One of three divisions in the Grupo Pavisa glass and packaging group, Pavisa Industries has been a leading Mexican manufacturer of plastics packaging for more than 30 years, Owens-Illinois said. "This is an attractive opportunity for O-I to enter the healthcare market in Mexico with a knowledgeable partner and at a new, best-in-class facility," commented Mike Castillo, Latin America business development manager for Owens-Illnois HealthCare Packaging Inc. O-I de Mexico also concluded a 50/50 joint venture with Bepensa Industries to manufacture and sell compression-moulded, plastic carbonated soft-drink closures in Mexico. The two deals came despite O-I's announcement in January that it had retained Goldman Sachs to review the strategic options for its plastics packaging business, including a possible sale. O-I Plastics, which comprises HealthCare Packaging and Closure & Specialty Products, accounts for only around 10 per cent of the parent company's operations, following the divestiture of its blow-moulded plastic container unit in 2004. A report early last month in the Financial Times​ said first-round bids were about to go in for the plastics packaging business, although O-I has not commented on the process. It declined to give any further details on the Mexican joint venture for healthcare packaging or its progress with the strategic review.