Packaging giant Orora has secured a new supply agreement with leading dairy group, Fonterra.
Under the new agreement Orora will supply multi-walled dairy bags to the Fonterra Co-operative Group Limited for its milk powder operations.
Orora has committed to build a new $20 million dairy bag production line, supported by a new state-of-the-art dairy bag making machine that incorporates 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 combined with the highest food safety standards.
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.
"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.”