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Packaging company Amcor will buy a plastic container manufacturing business from US-based Sonoco Products for $280 million.

The acquired business, Sonoco Specialty Containers, makes moulded packaging for food, drink and pharmaceuticals.

Amcor said in a statement it would expand Amcor's rigid plastics division and allow the company to access US customers.

"Part of our strategy to grow this business includes acquiring specialised manufacturing capabilities which unlock further growth," chief executive Ron Delia said.

The acquisition is expected to give Amcor complementary capabilities and technologies such as extensive extrusion blow moulding and injection technologies, expertise in producing polyethylene, polypropylene and multi-layer containers, as well as additional decorating capabilities.

The acquisition remains subject to approval from US regulators.

Food & Drink Business

Western Australian producer, Brownes Dairy, has been put up for sale according to the Australian Financial Review (AFR), as one of its biggest lenders, China Mengniu Dairy, calls in its $200 million loan. A reduced demand for milk in China and the current positioning of the global market could be driving the decision.

The Central Coast is about to receive a boost to its local food and beverage manufacturing industry, with construction starting on the $17.14 million Food Manufacturing Innovation Hub, funded by the federal government’s National Reconstruction Fund (NFR).

The Australian Industry Group (Ai Group) says Australia is at a “critical crossroads” when it comes to R&D and decades of rhetoric have not delivered material change.