Graham buys Owens-Illinois' blow molding business.

Owens-Illinois (OI), Toledo, Ohio, a pioneer in blow molding technology, has sold its Blow Molded Plastics Container business to Graham Packaging Co. LP of York, Pa. Included in the sale are 31 manufacturing plants--24 in the U.S., two in Mexico, three in Europe, and two in South America. The business produces containers for food, beverage, household-chemical, and personal-care markets. Net sales of the division last year were approximately $1.1 billion. Graham's acquisition of the business reinforces its position as North America's largest blow molder and one of the leading processors worldwide. Graham has 57 plants of its own throughout North America, Europe, and Latin America that produce custom containers. Its total employment will grow from 4000 to more than 9000.

The sale is part of a strategy by OI to focus on its glass container, healthcare packaging, and closures businesses. OI, however, keeps its plastic container operation that supplies healthcare markets and will combine it with the Closure and Prescription Products business.