Orora Limited (ASX:ORA) has committed to invest $42 million in additional glass bottle forming lines to increase the output from its glass facility in Gawler, South Australia by 60 million bottles per annum, creating 25 new jobs in the region and delivering significant flow-on benefits to local suppliers of materials and services.
A further $10-15 million investment in an automated warehouse is also under consideration.
“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 (both domestically and export). 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,” said Nigel Garrard, Orora’s Managing Director and CEO.
“This represents the largest single capital investment in the future growth of our business to date, and we are delighted to be making this investment in South Australia. 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 delivering significant long term benefits to our customers – including South Australian wine producers – and flow on effects to local industry and the region,” Mr Garrard added.
A team of approximately 85 will be onsite throughout the construction period and progressive commissioning of the new glass forming lines. Once fully operational in the first half of 2017, 25 new jobs will have been created to support the increased glass production. The investment will also deliver flow-on effects throughout the region particularly for local engineering and electrical service suppliers to the site, and the suppliers of raw materials.
“This investment further highlights Orora’s promise to be an innovative and customer-led provider of total packaging solutions,” said Mr Garrard.