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Alexandrow & Partners

Legal Consulting and M&A

Sept. 2011: production of container glass in russia

In the Russian Federation it will become impossible soon to reuse glass bottles intended for bottling of alcoholic beverages and soft drinks. Production capacities of Russian factories are still insufficient for an increasing demand for glass containers.

To increase the production of container glass it is necessary urgently to modernize capacities of dozens of Russian enterprises producing bottles, jars and other glass containers. The best opportunities and combination price / quality are offered by European manufacturers of equipment. On the market the Czech, German and Italian manufacturers are represented. Traditionally, the highest German quality of equipment means a high price initially but then allows reducing current operating costs. The Czech-made equipment is cheaper in price but its maintenance and the percentage of defects that I have seen with my own eyes at the production site of a Russian glass factory counts still in favor of the German manufacturers.

Glass containers should come to replace the unaesthetic PET-package which is used extensively now for the production of dairy products, carbonated drinks, for filling with water and even for filling with alcoholic beverages (beer in containers of 3 or 5 liters). The aesthetics of glass and its food neutrality as well as low price of glass containers produced on the modern equipment – these are the advantages of return or, more precisely, output to the former frontiers on the new qualitative level.

Alexandrow & Partners offer owners of glass factories and initiators of new projects providing the construction of factories for the production of container glass, the best financial conditions for the acquisition of production equipment. In cooperation with leading German engineering companies we are implementing projects in regions of the Russian Federation.