A GLASS bottle manufacturing plant in Gawler is investing $42 million to expand production, creating 25 new permanent jobs and 85 jobs during construction.
Orora Ltd, a multinational packing business, wants to increase output to meet growing demand by the wine and beverage industry.
The Gawler expansion will cost $42 million, a record single capital investment for the company, which will help increase output at its plant by 60 million bottles per annum.
Regional Development Minister Geoff Brock said taxpayers would contribute $2.4 million in funding toward the redevelopment.
The company is also considering investing a further $10-15 million in an automated warehouse.
Orora now employs about 300 people at Gawler, one of 39 manufacturing sites it operates in seven countries.
The low Australian dollar is helping fuel exports, especially to Asia.
Delivering its financial results last week — an $88 million net profit for the first six months of the financial year — Orora said there was strong demand for its bottles.
“Management is in the final phase of assessing investment options to increase capacity,” managing director Nigel Garrard said.
Investment and Trade Minister Martin Hamilton-Smith said the expanded Gawler plant would inject $10 million a year into the economy in wages and supply chain benefits.
“To meet ongoing demand, Orora is currently importing bottles from overseas — so what this
proposed expansion means is that a majority of those imports will now be replaced by locally
manufactured bottles,” Mr Hamilton-Smith said.
“What we have here is a multinational company investing significant dollars to grow its
business in South Australia.”
The funds will be drawn from the Investment Attraction Agency and Regions SA.
Orora’s products include cardboard cartons, glass bottles and jars and aluminium cans.
Listed on the Australian stock exchange, Orora was demerged from Amcor in 2013 and has annual revenue in excess of $3 billion.
Mr Garrad said the support of the SA Government and the Investment Attraction Agency have been important in securing this investment.
Source : adelaidenow.com.au