Converting

Australian packaging manufacturer Amcor is to invest AUD150m (£72.4m) on a third glass furnace at its wine bottle plant at Gawler, South Australia.

The furnace, which is will be completed during the first half of 2010, will increase the site capacity to 600 million wine bottles a year.

Amcor managing director and chief executive Ken MacKenzie said: "The wine industry in Australia continues to exhibit solid growth and this translates into increasing 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 2004."

The investment has been underpinned by long-term customer supply agreements, MacKenzie added.