The company is replacing its 40-year old paper mill at the Botany site with a machine from Finnish company Metso. The new machine will recycle corrugated boxes and produce a variety of papers for Amcor’s packaging.

According to Metso, the new machine will allow Amcor to produce paper at lighter weights with lower usage of energy and water.

Amcor executive general manager of corporate affairs John Murray told ProPrint the upgrade was scheduled to be completed towards the end of 2011.

“The machine will enhance the range of papers that Amcor offers to the marketplace, particularly lightweight papers,” he said.

“This will enable Amcor to offer innovative new packaging not currently available in the Australian marketplace.”

Amcor is consolidating its paper-making operations onto a single site at Botany, and will be closing its site in the Melbourne suburb of Fairfield upon the project’s completion. The plan was first announced in 2008.

The upgrade is expected to yield a gross cost of $400m, though a sale of the company’s Fairfield site will offset this to a net cost of $250m.

Amcor also recently purchased Memphis-based packaging company Wurzburg in a bankruptcy court sale. The acquisition is intended to bolster Amcor’s presence in the US, which is primarily focused on the western seaboard.

“It’s a small add-on acquisition to build critical mass on the eastern side,” Murray said.

Wurzburg is described as the largest packaging company in the US mid-south.

Amcor also recently announced the completion of its $2.4bn acquisition of Alcan Packaging, which was first announced in August last year.

Murray said that the two companies have come together “extremely well”.

“The business is now focused on capturing the synergy benefits and improving our product offering to customers,” he said.

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