29 January 1998: ACI Glass Packaging, the only maker of wine bottles in Australia, has a new upcoming rival; Winemakers Glass Corporation (WGC) of Australia. The Sydney-based company, WGC, is reported…
29 January 1998: ACI Glass Packaging, the only maker of wine bottles in Australia, has a new upcoming rival; Winemakers Glass Corporation (WGC) of Australia. The Sydney-based company, WGC, is reportedly setting up a A$ 100 million wine bottle manufacturing plant, which will most likely be located in South Australia. WGC“s general manager, Mr Roeland Ansems, said a report by the Australian Competition and Consumer Commission into ACI“s monopoly glass-making operations had given the group a lot of confidence in its proposal to set up a rival firm. The ACCC report said wholesale prices for wine bottles produced in Australia by ACI, which is owned by the British group BTR Plc, were often 30-100% higher than in overseas markets (see ACI in this week“s news on GlassOnline). Proximity to markets, and the availability of freight facilities, raw materials and sufficient gas and electricity requirements were said to be key factors in deciding on the factory“s site. Initially, the plant would produce about 75 million bottles per year, with a capacity of about 150 million at full strength. Mr Ansems, one of the three directors of WGC, said the Australian-owned company would target the premium end of the sector, which represents about 20% of the 400 million-plus wine bottles made in Australia each year. WGC first went public about its proposal last April and has been working behind the scenes on the project for the past eight months.