Leighton Contractors (ASX: LEI) has been awarded a $110 million contract by multinational packaging company Amcor (ASX: AMC) for the design and construction of civil & building infrastructure at the Botany B9 Paper Mill in Sydney.

Under the contract, Leighton Contractors will design and construct the paper machine building, stock preparation building, product store waste paper yard, mill offices, control room and other ancillary works.

Mark Chilcote, General Manager of Leighton Contractors' Industrial & Energy Division, said Leighton Contractors' existing knowledge of Amcor's business was a key factor in securing the contract.

"Over the last 10 years, we have successfully delivered Stages 1, 2 and 3 of the Amcor Glass Container Manufacturing Plant in Gawler, South Australia.

"These container glass plants have firmly established Amcor as a leading supplier in that business sector and we are confident the new Botany Paper plant will be similarly successful."

Peter Handel, Executive General Manager of Leighton Contractors' Industrial & Energy Division said "The new Botany Paper Mill represents the future of environmentally sustainable paper manufacturing worldwide."

The Botany B9 Paper Mill will generate high quality recycled paper from waste collected throughout the Sydney area. It will produce paper-based products across a wider range of weights and create packaging that is lighter, more efficient and more environment-friendly.

The new mill was given state approval in July 2007 and is one of Amcor's biggest single investments. Existing mills at the Botany site will be closed once the new facility is commissioned.