Orora is to close its G1 furnace at its glass production facility in Gawler, South Australia.
It said cost pressures will mean the G1 furnace - its oldest oven - will shut down permanently in the second half of this year.
It means capacity will be decreased at the site by some 100,000 tonnes. The site will continue to operate with production from two furnaces.
Transfer of some of its production will be transferred to its Saverglass glass facility in the United Arab Emirates.
In addition, it is making a €40 million upgrade it its glass manufacturing site in Ghlin, Belgium where all European wine and champagne bottles will be produced.
Managing Director and Chief Executive Officer, Brian Lowe said: “Orora has managed softness in commercial wine and beer volumes in Australia for several years, and in light of this has undertaken a review of glass capacity across the Australasian market.
"This has resulted in the decision to move from a three furnace to two furnace operation at Gawler, and close our oldest furnace, the G1 furnace.”
The group completed the rebuild of its G3 oxy-fuel furnace at the site in December which has led to a 30% emissions improvement so far.
