Orora has announced plans to build a new dairy bag production line following the securing of a long-term supply contract for Fonterra's New Zealand milk powder operations. The $20 million investment will see the establishment of a new multi-wall paper bag production line – either in Australia or New Zealand.
The investment was flagged by Orora MD and CEO Nigel Garrard at the company's half year (to Dec 14) results announcement earlier this year, and at the time he told PKN that the location for the plant had yet to be decided, as both countries offered benefits that needed to be considered.
The commitment to the new plant was motivated by growing global demand for Fonterra's milk powder products, and Orora's customer-led philosophy to expand its business and invest in innovation to grow its own business and that of its customers.
This level of commitment represents a significant strengthening of its supply 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,” Garrard said.
The new plant will incorporate the latest bag making technology from Windmöller and Hölscher (W&H), which features digital pasting and the latest tube sealing technology.
Multiwall paper bag manufacturing took a big step forward in 2011 when W&H launched a new generation of machine that included digital pasting.
In simple terms, digital pasting involves the use of electronic glue guns to apply the glue to both form the tube and the bottom of the bag rather than the traditional mechanical application process that would use a customised glue pad for each product.
Digital pasting, therefore, significantly reduces set up or make-ready times. Also, through the accurate application of the glue the consumption of glue is reduced and the quality of the finished sack improves, extending the benefits through to the end user when filling.
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 combined with the highest food safety standards.
