Gerresheimer, Corning Form JVBy
In line with its strategy to focus on packaging solutions for its pharmaceutical customers, Gerresheimer announced that it will sell its glass tubing business to Corning Incorporated. Glass tubing is an intermediate product which Gerresheimer manufactures mainly for its own plants, where those tubes are used to manufacture ampuls, vials, cartridges, and glass syringes. To a lesser extent Gerresheimer sells tubing to external customers.
Gerresheimer and Corning have formed a 10-year-supply agreement for borosilicate glass tubes that secures Gerresheimer's demand for glass tubing. Corning, with expertise in glass, materials sciences and material innovation will manufacture and further develop glass tubing for the pharmaceutical packaging industry. In addition, both companies will establish a joint venture to accelerate innovations for the pharmaceutical glass packaging market.
Upon closing, Corning will assume ownership of both Gerresheimer tubing plants, i.e. the plant in Vineland, New Jersey, and Pisa, Italy with approximately 300 employees. The current tubing business of Gerresheimer holds a number two position in the global pharmaceutical tubing market, according to the company. The FY 2014 revenues for glass tubing of Gerresheimer amounted to EUR 83 million ($93 million). The closing is expected by the end of 2015.
In addition, Corning and Gerresheimer will set up a joint venture to accelerate pharmaceutical glass packaging innovations. Corning will hold a 75% stake in the joint venture, Gerresheimer 25%.