Australian packaging company to supply Fonterra’s new dairy bags
Australian packaging company Orora has announced a new supply agreement with New Zealand-based global dairy giant Fonterra to supply multi-walled dairy bags to Fonterra’s New Zealand milk powder operations.
Orora Ltd is headquartered in Melbourne, Australia. The company was created in 2013 after Amcor, one of the world’s largest packaging companies with a 150 year history in Australia, demerged their Australasian and Packaging Distribution businesses.
New $20 million dairy bag production facilities
The agreement with Fonterra will see Orora investing in its manufacturing capacity for the supply of multi-walled dairy bags to Fonterra’s New Zealand milk powder operations.
Orora said it will build a new $20 million dairy bag production line. This will be supported by a new state-of-the-art dairy bag making machine, incorporating digital pasting of bags and the latest tube sealing technology. Orora expects to install and commission the new machine in the second half of 2016.
When complete, the new production line will be one of the leading dairy bag manufacturing facilities in the world with the latest bag-making technology.
“We are very pleased to announce this important expansion of our business and step forward in our relationship with Fonterra,” said Nigel Garrard, Orora Managing Director and CEO. “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,” he said.
Orora profits up
The deal with Fonterra comes soon after Orora announced a net profit after tax of $69.1 million for the half financial year ended 31 December 2014, an increase of 23 per cent on the previous corresponding period.
Sales revenue for the half year period was up 3.4 per cent to $1.7 billion, and EBIT was up 14.6 per cent to $118.4 million.