Amcor announces $150 million expansion of its wine bottle glass plant

Posted by James Ferre on 10th June 2008

Amcor has announced today that it will build a third glass furnace at its wine bottle plant in Gawler, South Australia.The new furnace, which is expected to cost $150 million, is due for completion during the first half of calendar 2010. Upon completion, the site will have three furnaces with an annual capacity of 600 million wine bottles.

Amcor claim the new furnace is consistent with the approach in building the first two furnaces, as returns are to be underpinned by long term customer supply arrangements.

Amcor’s Managing Director and CEO, Ken MacKenzie, believes the investment is necessary to cope with growing demand within Australia. “The wine industry in Australia continues to exhibit solid growth and this translates into increasing demand for wine bottles,” Mr  MacKenzie said. “To meet this growth a new furnace needs to be constructed in Australia every three to four years. The current supply and demand environment is extremely tight given that the last furnace commissioned in Australasia was our second furnace at Gawler at the beginning of calendar 2004.”

“Since commencing operations in 2002 our glass operations have consistently delivered high levels of quality, service and innovation. The wine industry has been supportive of our growth and it is pleasing that this investment is underpinned by long term customer supply agreements.”