Amcor's $40m investment will double capacity at can factory

Amcor supplies energy drink, soft drink, RTD and beer producers. Photo / Hawkes Bay Today

Australian-owned global packaging manufacturer Amcor has confirmed it will invest $40 million in expanding the capacity of its South Auckland can-making facility.

The Wiri plant currently produces around 150 million aluminium cans a year - primarily for the New Zealand market - to supply energy drink, soft drink, RTD and beer producers.

The $40 million investment in a new production line would double the Wiri plant's capacity when it becomes fully operational early next year, said Amcor Australasia managing director Nigel Garrard.

He said the new line was needed to meet the increasing demand of New Zealand beverage producers.

"We'll also be able to supply some of our Pacific Island customers from New Zealand, rather than from Australia," he said.

Garrard said it made sense to supply the Pacific Islands from Auckland, as it would cut back shipping and transit times.

"We can then provide better service to our customers."

The expansion also meant jobs, as the plant would require additional staff as its capacity increased, he said.

The plant employs 77 staff.

Manukau mayor Len Brown said the investment was significant and "really good news" for Manukau, as well as being a sign that the region was emerging from the recession.

Amcor has other factories throughout New Zealand producing flexible packaging for food products, corrugated and folding cartons and point-of-sale display units.

Last month Amcor completed an A$2.44 billion ($3.19 billion) acquisition of several pharmaceutical, Asian food and tobacco packaging businesses from Anglo-Australian mining giant Rio Tinto.

Bruce Goldsworthy, of the Employers and Manufacturers Association, said Amcor's investment was the largest he could remember in the sector for some time.

"[The investment] is a big expression of confidence in the manufacturing sector," he said.

"Forty million is a pretty extensive investment, particularly when you're looking at a expanding an existing plant as opposed to building a brand new one.

"Forty million is at the top end of what I've seen over recent years."

Goldsworthy said the investment sent "a great signal" out to Kiwis that they could have confidence in manufacturing activity, and dispelled the myth that most products used in New Zealand were imported.

"It's warm, fuzzy, good-feeling story - not just for the company - but even for kids that might be looking for jobs in the future."

Brown said he had seen a trend for refits and extensions, rather than relocations, in Manukau's industries.

"A lot of the building consents coming through are for extensions, alterations and amendments," he said. "[Amcor's] investment just happens to be one hell of an extension, alteration or amendment."

ENERGY SHOT
* Packaging firm Amcor to invest $40 million in Wiri can factory.
* Will double plant's capacity from 150 to 300 million aluminium cans a year.
* Company plans to increase staff from the 77 currently employed.