ANN ARBOR, MICH. (June 19, 4:55 p.m. ET) -- Amcor Rigid Plastics has launched an on-site PET bottle manufacturing operation at a PepsiCo production plant in Mountain Top, Pa..

The in-line operation will produce approximately 650 million hot-fill bottles annually for Pepsi’s Gatorade brand, according to a June 19 news release.

The plant had been purchasing bottles from merchant suppliers.

On-site manufacturing is efficient, reduces costs and offers sustainability benefits, said Larry Weber, vice president and general manager of Amcor’s North American Beverage Group, in the release.

Amcor operates similar hot-fill operations at seven beverage filling plants in the U.S.

According to the release, Amcor received financial support from state and local agencies, including approximately $100,000 in grants for site development and employee training.

Amcor Rigid Plastics, based in Ann Arbor, Mich., is the largest blow molder in North America with approximately $12 billion in sales in 2011, according to the most recent Plastics News ranking.

The company, a division of Melbourne, Australia-based Amcor Ltd., operates at 66 plants in 12 countries.