Australian packaging giant Amcor is to expand its North American operations after securing a contract to supply PepsiCo.

Amcor said yesterday (1 May) that it plans to build an US$80m plant in Wytheville, Virginia to supply PepsiCo with heat set containers, primarily for its Gatorade brand. The site, expected to be up and running by March next year, will have an initial annual capacity of 1bn units, Amcor said.

"This project is a strong fit with our stated strategy of investing in the custom PET sector. Amcor brings excellent technology to the fast growing hot filled beverage segment," said Amcor managing director and CEO Ken MacKenzie.