The investment involves installation of an upgraded corrugator with Xitex capability, an additional rotary die cutter and improved warehouse facilities on the existing site.

Xitex is Amcor's patented board technology. Amcor says it provides superior strength and box performance characteristics to conventional corrugated boxes and is particularly suited to long-haul packaging for fruit and produce.

The upgrade will increase the plant's production capacity by 50 per cent, consolidating Amcor's position as the leading supplier of corrugated boxes in the North Queensland and Northern Territory region.

Amcor's investment is part of the turnaround plan announced in August 2006 to improve the footprint of its manufacturing operations along the eastern seaboard.

Amcor operates nine corrugated box plants throughout Australia, including two in Queensland at Rocklea and Townsville. Corrugated boxes have been manufactured from the Townsville site since the 1960's.

Alex Hutton, general manager Amcor Fibre Packaging Queensland-NT says, "The Townsville upgrade follows the recently completed expansion of our corrugated box facility at Rocklea. The combined investment of over $50m in these two plants allows us to significantly improve product quality, service and responsiveness to our Queensland customers.

"Both Queensland and Northern Territory have a strong economic outlook and we identified the need to have additional corrugated box production capacity in both Brisbane and Townsville to give us an optimal distribution mix to better serve our customers."

Earthworks will commence next month and the project is scheduled to be completed by April 2008.

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