MANUFACTURER RAISES ITS GLASS IN SOUTH AUSTRALIA

Written on the 25 February 2016

MANUFACTURER RAISES ITS GLASS IN SOUTH AUSTRALIA

PACKAGING company Orora (ASX: ORA) today announced a grand plan to bottle up the South Australian market, quite literally.

Having committed to invest $42 million in additional glass bottle forming lines in its Gawler facility, the Western Australian-based company plans to increase its output by 60 million bottles per annum and create 25 new jobs in the process.

Orora managing director and CEO Nigel Garrard says this decision marks the single largest capital investment in the company's future growth, made in line with a booming southern wine industry and a competitive Aussie dollar.

"Orora's glass business is experiencing increased demand within the wine segment driven by the repatriation of wine currently bottled offshore for bottling in Australia, and the positive impact of the lower Australian dollar on customer volumes," says Garrard.

"The glass business is already in an oversold position, and this investment will further enhance Orora's ability to service the increased demand from its customers."

Garrard says SA State Parliament and the Investment Attraction Agency have also been major players in the company's expansion success.

"The strong support of the South Australian Government, particularly Minister Hamilton-Smith and Minister Brock, together with South Australia's Investment Attraction Agency, have been important in securing this investment."

Garrard expects the flow-on effects from Orora's South Australian endeavours to be highly beneficial to the region, with local engineering, electrical service and raw material suppliers all set to get on board.

The new facility is expected to be fully operational in the first half of 2017 with a team of about 85 set to work on construction.

A further $10-15 million investment in automated warehousing may also be on the cards, although no official confirmation has been made.


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