Orora will build a $20m dairy bag production line after securing a major contract to supply Fonterra’s New Zealand milk powder operations.

The multi-wall paper bag production line will be housed in a new plant either in Australia or New Zealand and should begin operations in the second half of 2016. Fed by a new Windmöller and Hölscher dairy bag making machine the process will  feature digital bag pasting and the latest tube sealing technology.

Orora saya the, 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. The company adds that the investment forms an important expansion of the company’s business that will strengthen its supplier relationship with Fonterra. A spokesman says, “Long-term investments and contracts such as this demonstrate our commitment to invest in initiatives for our customers and to drive innovation across Orora.”

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