Australia’s only manufacturer of printing and packaging papers has welcomed the Victorian Government’s plans for a new $110 million plantation industry in Gippsland. Australian Paper says bushfires and environmental pressures are threatening the future viability of the regional industry.
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| The Australian Paper mill at Maryvale in the Latrobe Valley, VIC |
The Victorian Government this month announced an immediate ban on all old growth as part of a multi-million-dollar plan to end native logging by 2030. Minister for Agriculture Jaclyn Symes said the Labor Government’s record $110 million investment in native plantation timber would include 550 hectares of crown land close to Maryvale and Yallourn North in the Latrobe Valley that will be planted with native Blue Gum.
Environmentalists celebrated the news but Victorian timber workers say the plan will result in the loss of tens of thousands of jobs and destroy their communities.
Australian Paper, owned by Japan’s Nippon Paper Group, says the decision will help secure its future as one of the largest employers in the Latrobe Valley and provide a plan towards addressing industry supply uncertainty.
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| Peter Williams, COO Australian Paper |
“As a major input to paper manufacturing, sustainably managed wood from local plantations and State regrowth harvesting underpins Australian Paper’s operations,” said Peter Williams, chief operating officer Australian Paper – manufacturer of the popular Reflex brand copy paper.
“Due to the impact of bushfires and environmental pressures, supplies of state timber have been reducing, threatening the future viability of this regional industry,” Williams said.
“Our mission of sustainable growth for the next generation is built on strategic investment, innovation and global competitiveness. However, long term wood supply is a key to the future of Australian Paper and the broader forest contracting and sawmilling industry.
“We recognise that this transition will be enormously challenging for the whole industry and will require extensive engagement from Government during the lengthy transition period. This is particularly important for Gippsland’s sawmill workers and harvest and haulage contractors. We endorse the importance of the Government’s commitment to significant industry support throughout the transition.
“Plantations currently provide more than two thirds of Australian Paper’s timber supply, he said. "Australian Paper has been operating without a firm long term commitment for our State timber supply and today’s announcement provides assurance to our workers in the Latrobe Valley. It will also support ongoing investment in our Maryvale operations."
Australian Paper has more than 850 employees at its Maryvale Mill and says its operations support over 5,500 direct and flow-on Victorian jobs. Australian Paper is currently undertaking a $200 million, five-year capital reinvestment program at Maryvale.
Nippon Paper has continued to invest in the company over the past decade, including a recent $1.7 billion acquisition of the Orora Fibre Packaging business, which is expected to be completed in early 2020.
