Apr. 29—GREENWOOD TOWNSHIP — A Geneva-area glass plant will receive $93.6 million in upgrades that are expected to result in the addition of 130 full-time jobs.

Vitro Architectural Glass of Cheswick announced plans this week to rebuild and modernize a production line at its Meadville Plant. The line will manufacture glass for use in solar panels produced by First Solar of Tempe, Arizona.

The investment, which will also include the construction of offline production capabilities, will support a First Solar manufacturing expansion in the U.S. Vitro expects to generate more than $1 billion in sales over the next decade as a result, according to Vitro's announcement.

Production at the Meadville Plant is expected to start in spring 2025.

"This agreement is a true manifestation of Vitro's purpose of enabling the full potential of glass to shape how we move, build, and live today and in the future," said Adrian Sada, CEO of Vitro S.A.B. de C.V., the Mexican firm that owns Vitro Architectural Glass. "It also reflects our continued commitment to the North American Trade Region and is proof that we have a sound strategy for growth as a global player. We are thrilled by how, through this partnership, we will serve the U.S. market with new and better sustainable products while advancing our strategy to drive growth in the renewable energy sector."

Rep. Mike Kelly, whose 16th District includes all of Crawford County, wrote a letter of support on behalf of Vitro to the Biden administration.

Kelly requested tariff relief that would allow Vitro to import specialized glass manufacturing equipment key to the expansion but available only from China. The current 25 percent tariff made the $30 million equipment cost prohibitive, according to a statement from Kelly.

"I'm incredibly excited to hear Vitro Architectural Glass will be expanding their footprint right here in the Meadville area," Kelly said in the statement. "This upcoming expansion builds upon Crawford County's rich history in the manufacturing industry. I look forward to working alongside the hardworking team at Vitro Architectural Glass in the years to come!"

The production line that's being brought back into production was shut down in mid-2020, leading to the loss of more than 100 jobs.

Meadville's Line 1 and Line 2 were operating at about 60 percent capacity due to challenges in the U.S. automotive market — even before the coronavirus impacts, the company said.

The prospect of the needed rebuild at a time when the U.S. auto market was slumping and feeling the effects of the pandemic-related economic downturn led to the closure, the company said at the time.

Rebuilding Line 2, which had last been upgraded in 2009, was expected to cost about $40 million at the time of the closure. Flat glass production lines require a rebuild about every 10 years, given normal wear and required technical upgrades, according to the company.

"In 2020, Vitro Meadville's Line 2 was at the end of its useful life when it was also impacted by the automotive industry supply chain disruptions due to the COVID-19 pandemic," said Ricardo Maiz, President of Vitro Architectural Glass. "We're very pleased to have the opportunity to bring this line back into production and contribute to the revitalization of manufacturing in the U.S. and western PA."

Local flat glass manufacturing

The flat-glass making plant in Greenwood Township has been in operation since 1968. It was built and first operated by PPG Industries Inc. of Pittsburgh.

In 2008, PPG Industries sold its entire flat glass-making division to Pittsburgh Glass Works LLC, a new company formed by funds managed by Kohlberg & Company LLC.

PPG received approximately $270 million in net proceeds from the sale of its glass business plus a 40 percent interest in PGW. That sale included PPG receiving $8.1 million from Pittsburgh Glass Works LLC for the Greenwood Township flat glass-making plant, according to a deed recorded in the Crawford County Register and Recorder's Office.

In 2016, LKQ Corp. of Chicago, a maker of replacement and accessory auto parts, bought Pittsburgh Glass Works LLC for $635 million from Kohlberg & Company LLC and PPG Industries Inc.

In 2017, Vitro, S.A.B. de C.V., a North American glass producer based in Monterrey, Mexico, bought the business from LKQ Corp. for $310 million, free of cash and debt.

In 2020, Vitro S.A.B. de C.V. shut down the plant's Line 2, resulting in layoffs to more than 100 employees.

Mike Crowley can be reached at (814) 724-6370 or by email at mcrowley@meadvilletribune.com.