25 Feb 2016 Investment
The multi-million dollar expansion of a glass manufacturing plant north of Adelaide will generate 25 new jobs, a pipeline of construction activity and significant flow on benefits for South Australia’s wine and beverage industry.
ASX-listed packaging manufacturer, Orora Limited, will invest approximately $52 million towards additional glass bottle manufacturing and a state-of-the art automated warehouse to increase output from its existing Gawler facility. The expansion is expected to sustain 85 additional jobs during construction.
Minister for Investment and Trade Martin Hamilton-Smith said Orora currently employs over 300 people at its existing Gawler facility producing glass bottles for the wine and beer industries and Orora’s 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 – so what this 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 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.
“Upon completion, Orora expects the expanded facility will result in excess of $10 million per annum spent within the local supply chain through raw materials, energy, maintenance and
“Orora is the first multi-national entity to be assisted by Investment Attraction South Australia which is only in its fifth month of operation. The Agency’s strong start is already delivering results for the State.”
Minister for Regional Development Geoff Brock said this is an important investment for the region, which is why the State Government, through Regions SA and Investment Attraction South Australia collaborated to provide $2.4 million in funding.
“Local suppliers are also set to benefit significantly with approximately $26 million of the construction spend confirmed to be sourced from South Australian businesses,” Mr Brock said.
“This not only helps create and secure jobs in northern Adelaide and the Barossa, Light and Lower North region, it provides the State’s wineries and bottling companies with access to additional supply of South Australian-made bottles.
“With investments like Orora’s, South Australia’s wine industry continues to take on the world.”
Minister for Automotive Transformation Kyam Maher said investments like Orora’s are driving the economic transformation of northern Adelaide and align closely with the objectives of the Northern Economic Plan.
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-inclass, and only site of its kind in Australasia.
Orora has indicated this investment would offer employment opportunities to the northern Adelaide region including current and former GM Holden employees.
“This investment highlights Orora’s promise to be an innovative and customer-led provider of total packaging solutions,” Mr Garrard said.
“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.
“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.”
“The strong support of the South Australian Government – particularly Minister Hamilton-Smith and Minister Brock – together with Investment Attraction South Australia, have been important in securing this investment delivering significant long term benefits to our customers - including
South Australian wine producers - and flow on effects to local industry - and the region.”
Member for Light Tony Piccolo welcomed the investment and said the creation of new jobs and the expected flow on benefits for the wine and beverage industry will be important for the region.