SGD, the world leader in high-end specialty glass bottles for the perfumery, cosmetic and pharmacy industries, has achieved the strengthening of its financial structure with Oaktree Capital Management becoming its majority shareholder.

Capitalizing on innovation

The French group SGD, (formerly Saint-Gobain Desjonquières) produces each year more than 3 billion bottles and has achieved in 2008 a turnover of EUR 631 million. SGD has now 12 production sites and 10 commercial implantations in France, Germany, Spain, Italy, Brazil, China, Russia and the United States. SGD employs 6000 people worldwide, half of which are located in France.

In 2009, SGD relaunched baby glass bottles on the French market and created the first 100% recycled and recyclable glass bottle in the world, for the perfumery and cosmetic industry.

Investment plan

In addition, the glassmaker has announced the reconstruction and modernization of the furnace #3 in its production unit in Mers-les-Bains, France. With a capacity of 35 tons / day, this furnace will be operating in July 2010.

This investment of over EUR 3.2 million budgeted in the 2010 to 2013 business plan, is part of an investment program of EUR 293 million on a 5 year period, which was recently announced by Thierry Dillard, CEO the SGD group.

This reconstruction comes in addition with the recent decision to upgrade the furnace #4 of the Mersois site, furnace which is exclusively dedicated in supplying bottles for the pharmaceutical sector, and for which SGD will invest more than EUR 5.5 million, mainly on the "cold end" section (corresponding to the end of the production line).

The new furnace #3 will be dedicated to the manufacture of glass involving special compositions for perfumery - cosmetic and pharmaceutical markets. This reconstruction will help the SGD group to strengthen its global leadership in innovation and Research & Development.

At SGD’s headquarters it is said that “the type and configuration of this new furnace will allow the SGD group to carry out tailor-made production campaigns to meet the most demanding requirements from customers in terms of quality and innovation”.

“In addition to the production of glass with yellow or black shades with unrivalled intensity, with this furnace, SGD will be the first actor in the world, manufacturing premium glass bottles, to be able to offer customers from the perfumery - cosmetic sector, the SGD red colored injected glass, an exclusive process developed by SGD.”

Furnace #3 will also produce SGD’s latest world exclusive: the Infinite Glass, the only glass in the world 100% recycled - 100% recyclable dedicated to the perfumery - cosmetic sector. The use of this glass is also an innovative approach in bottle designing, since recycling can dramatically reduce the use of natural raw materials and CO2 rejections into the atmosphere.

This environmental approach was an essential aspect in the specifications for the construction of the furnace #3. Equipped with electronic filters for dust and smoke treatment and with the latest advances in heat recovery.