UPDATE 1-Australian bottler Orora urges government to help stabilise energy costs
SYDNEY, Oct 5 (Reuters) - Orora Ltd, Australian's second-largest bottler, said its new glass recycling plant would help it weather soaring energy costs but also called on the government for measures to stabilise prices long-term.
Orora said it would be able to make 60% of its glass products from crushed, cleaned and re-processed product in its new plant by 2025, up from 38% in the year to June, hitting a self-imposed environmental target.
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Every 10% of Orora's glass output recycled also means a 3% reduction in energy costs at a time when prices are rocketing due to the war in Ukraine, Chief Executive Brian Lowe said in a telephone interview ahead of the plant's opening on Wednesday.
"We're going to control our own destiny, rather than rely on what the market may have to offer, which could leave us exposed," he said.
Orora, which serves the Australian wine, beer and soft drinks industries and also makes aluminium cans, signed energy contracts several years ago that stretch to late 2025.
Lowe said, however, that the company had "long term concern over access to supply, particularly in gas, and also stability in terms of pricing."
Last week the Australian government reached a deal with three east coast producers of liquefied natural gas to sell enough product domestically in 2023 to prevent a supply crunch.
"Supply is one thing, but supply at some astronomical price may have fairly significant negative impacts on industry," Lowe said.
"Getting access to competitive energy sources long-term is what industry needs. This is not a year-by-year proposition." (Reporting by Byron Kaye; Editing by Edwina Gibbs)