ASX-listed packaging manufacturer, Orora Limited is investing $52 million to expand its glass manufacturing plant near Gawler, north of Adelaide in a project expected to generate 25 ongoing jobs at the plant and sustain 85 additional jobs during construction.
Orora currently employs more than 300 people at the facility producing glass bottles for the Australian and New Zealand beverage industries and this investment will help the company meet growing demand being driven by increased wine exports to Asia.
To meet ongoing demand, Orora is currently importing bottles from overseas; the expansion means that most of those imports will be replaced by locally manufactured bottles. Upon completion, Orora expects the expanded facility will result in excess of $10 million per annum spent within the South Australian supply chain through raw materials, energy, maintenance and labour costs.
Local suppliers are also set to benefit significantly with approximately $26 million of the construction spend confirmed to be sourced from South Australian businesses.
Managing Director and CEO of Orora, Nigel Garrard, said the expansion is the company’s largest single capital investment to date and once completed, the facility will be the best-in class, and only site of its kind in Australasia.
“Our glass business is experiencing increased demand within the wine industry and the lower Australian dollar has also had a positive impact on customer volume,” Mr Garrard said.
“The glass business is already in an oversold position, and this investment will further enhance Orora’s ability to service the increased demand from our customers.
“We’re absolutely delighted to be making this investment in South Australia given the State Government’s strong focus on premium food and wine and commitment to regional development.”