The investment sees glass bottle production capacity at Orora's South Australia site increase by 60 million bottles to a total of over one billion per year.
The Gawler facility, which produces glass bottles for the Australian and New Zealand beverage industries, employs more than 340 people. The latest expansion created 26 new jobs.
The increase in production directly benefits the South Australian wine industry, which is enjoying a sustained period of growth fuelled by exports to key global markets.
Before this expansion, Orora had been forced to look to offshore bottle imports to keep up with demand.
According to a statement from the Government of South Australia, 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.
“Orora’s Gawler facility is already one of the largest glass manufacturing facilities in the Southern Hemisphere and the $42 million investment enables us to service the increased demand for high quality glass bottles,” said Nigel Garrard, Orora’s managing director and CEO.
“We worked closely with the South Australian government during the plant expansion and were pleased to receive their investment support as we completed the project on time and on budget,” Garrard said.
Minister for Investment and Trade, Martin Hamilton-Smith, said: “What we have here is a multinational 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 winries and beverage companies with access to an additional supply of SA-made bottles.”
The Minister said this project exemplifies that South Australia's manufacturing sector “can deliver on a global scale and provide the efficiencies which international markets expect”.
In addition to the expansion of glass bottle forming capacity, Orora has introduced decorative glass bottle sleeving application at Gawler, to meet a growing customer demand to attractively package and label wine products, which increases on-shelf visibility and supports marketing and branding promotions.
“The expansion at Gawler represents one of Orora’s largest capital investments in Australia and helps underpin the long-term future of our glass business,” Garrard said.
“The investment reinforces Orora’s commitment to be an innovative and customer-led provider of world-class packaging solutions.”
