Australian packaging group Orora has said its acquisition of Saverglass was completed for €1,309.7m ($2,158.8m).

In its latest financial note, Orora said an extra $40.4 million was also spent on transaction costs relating to the acquisition of the French glass manufacturer.

Its financial results of the second half of 2023 reported that the first month of Saverglass’ earnings since the acquisition on December 1 were in line with expectations.

It said: “Saverglass’ results for the first month under Orora ownership, were in line with the December 2023 trading update, contributing revenue of €69.5m, EBITDA of €15.1m and EBIT of €8.1.”

In its outlook for 2024 it warned against the continued softening of glass packaging, stating ‘In Australasia, continued strength in cans in financial year 2024 is expected to offset the ongoing softness in glass from lower commercial wine volumes and lower beer bottle sales.’

It added that the integration of its Gawler, South Australia glass production facility has commenced into the Saverglass group, which it said will bring synergies of approximately $15m from financial year 2025 thanks to network optimisation, cost rationalisation and operational efficiencies across the combined glass business.

Site preparation has commenced for an oxygen plant to upgrade the G3 furnace at Gawler to oxyfuel technology in financial year 2025.

"This will enable an approximate 20% reduction in G3 furnace CO2 emissions and move it into the top 10% of energy efficient furnaces worldwide, delivering a step change reduction in greenhouse gas emissions.”

Saverglass’ F5 furnace was recommissioned as a low-carbon hybrid furnace in the first half of financial year 2024, with up to 30% electricity boost and delivering a CO2 reduction of 12% per tonne of glass produced, with successful hydrogen fuel trials completed in Feuquieres, France.

As part of the company’s Circular Economy Pillar, Orora achieved a 38% recycled content in the glass packaging it manufactures and is on track to achieve its 2025 goal of 60%. Notably, its Saverglass business achieved 73.3% of cullet in coloured glass.

The Cullet Beneficiation Plant at Gawler, South Australia, continues to divert cullet from landfill, supported by Orora’s cullet sourcing programme.

Orora uses approximately 80% of the recycled cullet from South Australia’s Container Deposit Scheme (CDS) and most of the cullet from Western Australia’s CDS.

The cullet sourcing programme is now active in all mainland Australian states with additional cullet sourced from the Victorian CDS from November 2023.