Penrice Soda Holdings Limited (PSH) announced a multi million-dollar soda ash and limestone supply contract with one of its largest customers, Amcor Limited (AMC). Australia’s sole producer of soda ash said the contract with Amcor Glass extends and expands an existing Penrice-Amcor supply partnership for two years until the end of 2014.

The existing contract sees Penrice supply soda ash from its Adelaide based chemicals plant to Amcor’s wine bottle plant at Gawler north of Adelaide.

Penrice said the new contract would see the company also supply Amcor limestone from its Angaston mine for the first time.

Managing director and CEO, Guy Roberts, said the track record of successful soda ash supply has now translated into Penrice being awarded Amcor’s limestone business.

“Penrice looks forward to working in partnership with Amcor to support the wine industry in Australia as Amcor builds a third glass furnace at the Gawler plant,” Mr Roberts said. “The new furnace is due for completion during calendar 2010 when the site will have three furnaces with an annual capacity of 600 million wine bottles.”

Mr Roberts added that the new contract is expected to generate increased earnings for Penrice and is also expected to exceed Penrice’s return on net assets benchmark rate of 15%.

“The contract will assist in recovering recent raw material and energy cost increases and supports further reinvestment in our businesses,” he said.

As at 1046 AEST, Penrice shares were up 4.5c to $1.03, while Amcor shares were up 4c to $5.46.