Greg Beatty, managing director of Amcor Australasia,
said the new facility was one of the biggest single investments in the company's
history and would represent a pivotal part of its future. He says, "Over the past 18 months,
Amcor has invested $75 million to substantially improve its corrugating and
conversion operations.

"Building the new mill at our existing Botany site
will substantially improve Amcor's value proposition to customers by delivering a
superior lightweight product."

Beatty said the new mill would produce paper-based
products across a wider range of weights, creating packaging that was lighter,
more efficient and far more environmentally friendly.

He says, "The new mill will significantly improve
environmental impact. Recycled and bore water will be used in the production
process with minimal use of town water for backup purposes.".

The new mill is expected to reduce water usage by 26
per cent, energy use by 34 per cent and waste to landfill by 75 per cent.

The new facility will be built on a vacant section of
Amcor's Botany site, next to two of its existing paper mills. These two existing mills, plus
Amcor's paper mill at Fairfield, will be closed once the new facility becomes operational in
2010-11.

Beatty says, "We realise that aspects of this decision will be
difficult for some of our employees at Fairfield and Botany. It will be business as usual for the next
three years, at the end of which employees will receive their full entitlements
as well as opportunities to re-train, professional career advice and an outplacement support
program," said Beatty.

"We will work closely with employees and the unions on
transitional arrangements, which balance the need to keep operating these mills
until 2010-11 while helping employees to make a new start after that."

There are currently 90 employees at the Fairfield site and 116 at Botany – about three per cent of
Amcor's total workforce in Australia. Approximately 60 employees will be offered ongoing
employment at Botany beyond 2010-11. Opportunities for deployment of some
employees to other Amcor sites may also be available.

Amcor will ultimately sell the 16 hectare Fairfield site and approximately half of the 20 hectare Botany site. Both sites will be fully
remediated by Amcor. The net cost of the new facility, after the
receipt of proceeds from land sales will be $230m.

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