Amcor to build new furnace at wine bottle plant

Amcor Ltd will add a third glass furnace at its wine bottle plant at Gawler in South Australia. The new furnace will cost AUD 150 million and be completed during the 1H of calendar 2010. On completion…

Amcor Ltd will add a third glass furnace at its wine bottle plant at Gawler in South Australia. The new furnace will cost AUD 150 million and be completed during the 1H of calendar 2010. On completion, the site will have three furnaces with an annual capacity of 600 million wine bottles. Amcor said that consistent with the approach in building the first two furnaces, the returns for the third furnace are supported by long-term customer supply arrangements. The investment is consistent with Amcor“s strategy of focusing capital on nominated growth segments, which includes glass wine bottles in Australia. Managing director and CEO Ken MacKenzie said the wine industry in Australia continues to show solid growth and this means rising demand for wine bottles. “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”.