Orora has committed to spending $42 million on additional glass bottle forming lines at its South Australia glass plant.
The increase in output will be approximately 60 million bottles per annum.
To maintain production rates, commissioning will be progressive and is expected to commence in the second half of 2016, with completion expected in the first half of 2017.
Approximately 35% of the cash flow will be invested in FY16 with the balance in FY17.
The company is also assessing a potential investment of a further $10-$15 million in an automated warehouse to optimise its existing warehousing and supply chain infrastructure.
Orora’s glass business is experiencing increased demand within the wine segment, driven by the repatriation of wine that is currently bottled offshore.
The positive impact of the lower Australian dollar on customer volumes (both domestically and export) is also benefitting the company.
“The glass business is already in an oversold position, and this investment will further enhance Orora’s ability to service the increased demand from customers,” said Nigel Garrard, Orora’s Managing Director and CEO.
“We were very pleased to receive financial and investment assistance from the South Australian Government, who have worked pro-actively with us as we have assessed this investment opportunity.
“This represents Orora’s single largest capital investment and helps underpin the long term future of our business”.