Orora secures Fonterra contract with $20m investment in production upgrade

Orora will build a $20 million dairy bag production line to supply multiwalled dairy bags to Fonterra’s New Zealand milk powder operations under a new supply agreement.

The production line will be supported by a 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 production line will be one of the leading dairy bag manufacturing facilities in the world.

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.

“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 added.