Victoria-based Orora announced today it has secured a supply agreement with New Zealand dairy giant Fonterra.
As part of the deal, Orora will plough AU$20m (US$15.25m, €14.35m) into the development its multi-walled dairy bag manufacturing capabilities.
Money will be invested in a new dairy bag making machine that incorporates "digital pasting of bags and the latest tube sealing technology."
It expects to have the machine installed and operating in the second half of 2016.
“We are very pleased to announce this important expansion of our business and step forward in our relationship with Fonterra,” said Nigel Garrard, managing director and CEO, Orora.
“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 and to drive innovation across Orora.”