Glass bottle giant Orora halts Middle East production amid war and warns of hit to earnings

Glass bottle and aluminium can manufacturing giant Orora has halted production at its facility in the United Arab Emirates amid ongoing tensions in the Middle East, with the company also warning of an earnings hit.

The Ras al Khaimah facility — which represents about 15 per cent of Orora’s bottle-making business Saverglass’ production capacity — has shifted to a “closed loop hot operation”, meaning the furnace is kept warm with no manufacturing taking place.

The listed Melbourne-based company said it had moved production to Mexico after the Iran war, which is now in its sixth week, closed shipping routes and made alternative overland routes inaccessible.

In a trading update on Thursday, Orora said it now expected Saverglass to report earnings of between €52 million ($86.2m) and €59m in the 2026 financial year, compared with the €79.2m reported last year.

This includes a one-off hit of about €9m and €11m related to the Ras al Khaimah facility.

Orora said it had also observed “a combination of a slower offtake in spirits, and a mix shift toward lower price and margin spirits products”.

While it still expects total sales volumes in the 2025 financial year to be higher than the prior corresponding period, it will be lower than previously anticipated.

Orora shares were 17.7 per cent lower to $1.62 at 10am.

It comes as food and beverage manufacturers warn surging supply chain costs triggered by the war, including the price of packing alongside petrol and diesel, could be passed onto consumers.