Manufacturing expansion and new jobs in the north a real bottler

4 September

International packaging firm Orora Limited has completed a $42 million expansion of its glass bottle manufacturing plant, boosting its 317-strong employee numbers by 26 and creating 85 construction jobs in northern Adelaide.

Minister for Investment and Trade Martin Hamilton-Smith today congratulated the company, located near Gawler, on delivering the project on time and on-budget. The State Government, through Regions SA and Investment Attraction South Australia collaborated to provide $2.4 million in funding to support the expansion.

Orora employs more than 340 people at the facility producing glass bottles for the Australian and New Zealand beverage industries. The expansion means the company will meet growing demand, driven by increased local wine exports. Until now Orora has been forced to look to offshore bottle imports to keep up with demand.

The expanded facility is expected to result in more than $10 million a year being spent within the South Australian supply chain through raw materials, energy, maintenance and labour costs. Local suppliers have also benefited through the expansion process with a good proportion of the contracts going to South Australian companies.

Minister for Investment and Trade Martin Hamilton-Smith said what we have here is a multi-national company investing significant dollars to grow its business in South Australia, which shows a great vote of confidence in the State’s economy.

“Orora has shown a great commitment to South Australia by sourcing many of the materials to manufacture its bottles from local suppliers. Orora is also providing our wineries and beverage companies with access to an additional supply of SA-made bottles,” Mr Hamilton-Smith said.

“This project is another example that South Australia’s manufacturing sector can deliver on a global scale and provide the efficiencies which international markets expect. With more locally manufactured bottles and forming lines leading to further supply chain advantages, this is a great result for South Australia’s wine sector and a great demonstration of an import replacement investment.

“Its projects like this that are driving the economic transformation of northern Adelaide in line with the objectives of the State Government’s Northern Economic Plan.”

Managing Director and CEO of Orora Limited, Nigel Garrard said the expansion project at Gawler represents one of Orora’s single largest capital investments in Australia and helps underpin the long-term future of our glass business.

“Orora’s Gawler plant is already one of the largest glass manufacturing facilities in the Southern Hemisphere and the $42 million investment enables us to meet the increasing demand for high quality glass bottles,” Mr Garrard said.

“The investment has substantially grown the scale of the Gawler operation, increasing capacity by around 60 million bottles, which will directly support the local wine industry.”

The South Australian Centre for Economic Studies has calculated the gross employment impact of the project to be 180 FTE (100 ongoing, 80 from capital works) and real GSP impact of $30.3 million.