Ardagh Glass Packaging completes refinancing of South African debt facilities

SOUTH AFRICA – Glass producer

Ardagh Glass Packaging Africa has completed the refinancing of the South African debt facilities assumed at the time of the Consol Glass acquisition in April 2022.

Under the terms of the refinancing, maturities have been extended to 2028, from 2023, and the total facilities were increased by approximately ZAR 3 billion (US$163.45m).

These facilities will support Ardagh Glass Packaging – Africa’s investment program for additional capacity, principally the construction of a third furnace (N3) at the Nigel production facility, near Johannesburg, which is expected to commence production in late 2023. They also provide increased liquidity to support the business and operations.

This refinancing was undertaken with the existing syndicate of South African banks (FirstRand Bank, Standard Bank of South Africa, Nedbank and ABSA Bank) which continued to show their support to Ardagh Glass Packaging – Africa.

This reflects the longstanding track record of the Ardagh Glass Packaging – Africa team and business, and its commitment to serving the growing demand for sustainable glass packaging in the region.

Meanwhile, the company’s investment in the third furnace will further increase the Nigel production facility’s capacity to provide sustainable glass packaging to support customers’ current and projected demand growth over the next few years.

N3 is a replica of the N2 expansion completed in 2022 and will incorporate a new furnace and additional production lines.

Following completion, the Nigel production facility will be the largest glass container production facility in its network, and on the African continent, says Ardagh.

India’s CCEA approves extension of mandatory packaging norms for Jute Year 2022-23

INDIA – The Indian Government’s Cabinet Committee on Economic Affairs (CCEA) has approved an extension of the mandatory packaging norms for Jute Year 2022-23.

The reservation norms require 100% of foodgrains such as rice and wheat, and 20% of sugar, to be packed in jute packaging.

These norms are specified as part of the Jute Packaging Material Act 1987 and were previously made mandatory for Jute Year 2021-22.

The extension will create direct jobs for 370,000 workers at jute mills and ancillary units, as well as a further four million families in the jute sector. It will also help protect the environment because jute is a natural, bio-degradable, renewable and reusable fiber and hence fulfills all sustainability parameters.

In a statement, the Indian Ministry of Textiles said: “The jute industry occupies an important place in the national economy of India, particularly in West Bengal, where nearly 75 jute mills operate and provide a livelihood to hundreds of thousands of workmen.”

Each year, the Government of India buys around Rs90 billion (US$1.08bn) worth of jute sacking bags for foodgrain packaging, ensuring a market for jute farmers and workers.

Jute sacking bags account for 75% of the jute industry’s total production. Of this, 85% is supplied to the Food Corporation of India (FCI) and state procurement agencies, with the rest being exported or sold directly.