Opal Group, member of the Nippon Paper Group, has announced that it is investing more than $140 million in the construction of a state-of-the-art, high speed regional manufacturing facility for cardboard packaging.

Opal Group said the facility will be developed in two stages. Stage One involves the construction of a highly automated, sophisticated 47,000m2 manufacturing site, located at the Logic Wodonga industrial estate at Barnawartha. Stage Two would extend the facility’s supply capacity to meet growth in demand, through emerging technologies.

During the peak year of Stage One construction, the project is expected to support up to 195 Victorian jobs. Once operational, the new Stage One facility is expected to support 432 Victorian jobs including direct and flow-on.

The company also said sustainability will play a key role in the design via solar energy generation and water harvesting capability. It will feature enhanced supply chain capabilities and advanced manufacturing.

The facility is also said to align with Opal’s circular economy approach through the local production of recycled and recyclable fibre packaging.

Opal CEO Matt Iizuka said the announcement recognises Opal’s significant investment in modern manufacturing in regional Victoria.

“Opal operates a fully integrated value chain in sustainable fibre packaging. The new facility will allow us to supply growing markets and better serve the developing needs of our customers,” Iizuka said.

“We appreciate the Victorian Government’s role in providing support to help make this important regional project into a reality.”

Wodonga Mayor Kev Poulton welcomed the announcement, describing the Opal facility as a key part of the ongoing growth of investment and jobs at Logic.

“Wodonga is open for business and at Logic we have enormous potential to develop business and industry that will reach local, national and global marketplaces quickly, conveniently and efficiently,” he said.

“Opal is also a great fit for Wodonga as a leading recycling community, and as a large employer making the most of our logistical, industrial and lifestyle benefits offered by Logic, Opal is a highly valued member of our growing business sector.”

Stage One construction is expected to commence in August 2022.