Mexico-based glass manufacturers Vitro has signed a $950m deal with its client Constellation Brands to produce 7.3 billion beer bottles over the seven-year life of the contract.
The deal is expected to triple Vitro's current volume of production for the beer market.
It will also invest about $100m in the construction of a new furnace at its plant in Monterrey.
Vitro CEO Adrián Sada Cueva noted that the new furnace will be built using the company's own technology, developed by Fabricación de Máquinas, and will begin operations within 18 months.
"During that time, we will manufacture in Toluca and Querétaro to meet these new commitments; both sites will continue producing for Constellation Brands once the new Monterrey furnace starts working.
"With this project, Vitro reaffirms its leadership in the market and strengthens the strategic position it has built. Our glass packaging production system is now one of the best and most extensive of the continent."
Constellations Brands is a producer of beer, wine and spirits and has operations in the US, Canada, New Zealand and Italy.
Meanwhile, Vitro is said to be exploring sale of its food-and-drink container business, which contributed 48% to the 2013 revenues.
The company, which was established in 1909, is a producer of glass containers and flat glass.
