New $20m dairy bag line for Fonterra

Fonterra is ploughing $20 million into the establishment of a new multi-wall paper bulk bag production line – either in Australia or New Zealand.

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, which won the supply contract for the new milk powder operations, expects to install and commission the new machine in the second half of 2016.

The new plant will incorporate the latest bag making technology from Windmöller and Hölscher (W&H), which features digital pasting and the latest tube sealing technology.

Orora said the location for the plant had yet to be decided, as both countries offered benefits that needed to be considered.