Orora has secured a contract from New-Zealand-based dairy co-operative group Fonterra for the supply of multi-walled dairy bags.
According to the terms of the agreement, Orora will invest in its manufacturing capacity for the supply of multi-walled dairy bags to Fonterra's New Zealand milk powder operations.
Orora plans to build a new $20m dairy bag production line. This line will be supported by a dairy bag making machine and incorporate digital pasting of bags and the latest tube sealing technology.
The company intends to install and commission the new machine in the second half of 2016.
Once completed, the new production line will be one of the biggest dairy bag manufacturing facilities in the world, the company claimed.
Commenting on the agreement, Orora managing director and CEO Nigel Garrard said: "We are very pleased to announce this important expansion of our business and step forward in our relationship with Fonterra.
"At Orora, we pride ourselves as being a customer-led company. Long-term investments and contracts such as this demonstrate our commitment to invest in initiatives for our customers and to drive innovation across Orora."
