Australian packaging company Orora has secured a new supply agreement with dairy group Fonterra where the former will supply multi-walled dairy bags to Fonterra’s New Zealand operations.
Orora will also construct a AU$20m ($15.25m) dairy bag production line that will be supported by the purchase of a dairy bag making machine, which deploys digital pasting of bags and the latest tube sealing technology.
The company is expecting to install and start using the new machine in the second half of 2016.
Orora claimed that once completed, the new production line would be one of the world's leading facilities with the latest bag-making technology combined with the highest food safety standards.
Speaking about the project, 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."
Based in Melbourne, Orora was formed in 2013 after packaging company Amcor demerged its Australasian and packaging distribution businesses. It is currently divided into two business segments, Orora Australasia and Orora North America.
With a team of 5500 members across seven countries, Orora specialises in producing corrugated boxes, folding cartons, recycled paper linerboard, glass bottles and jars, multiwall paper sacks, closures, aluminium beverage cans, bulk bags, packaging design and testing services and recycling services.
