Manufacturing News

Government grants $9.5 m for pulp plant construction

A press release issued by the Premier of Victoria has stated that the Australian government will provide a $9.5 million grant towards a $90 million project to construct a de-inked pulp plant at Australian Paper’s pulp and paper mill at Maryvale in Victoria’s Latrobe Valley.

The project will be supported by the Victorian Coalition Government which has worked with the Australian Government to attract new investment to the region.

Construction of this project will commence by the end of this year, which will create new 140 jobs.

Victorian minister for manufacturing, exports and trade, Richard Dalla-Riva, congratulated the company on its decision to invest in regional Victoria and the manufacturing sector.

“This is an innovative manufacturing process that will transform the production of paper by Australian Paper at Maryvale, and an example of new investment in manufacturing technology which will boost productivity and competitiveness, and help build a bright future for manufacturing in regional Victoria,” Dalla-Riva stated.

This new project will support the jobs of nearly 900 workers directly employed at the mill, as well as secure over 4,000 indirect jobs which rely on the mill’s operations.

In addition, the project is likely to create 14 new ongoing jobs, and keep around 100 existing indirect jobs in waste paper collection, sorting and transport around Australia safe. 

“Australian Paper’s decision to install this plant demonstrates a commitment to cleaner manufacturing and will provide Australians with greater access to recycled paper,” Greg Combet, federal minister for industry and innovation said.

Combet stated that “this project is an example of the type of investment Australian manufacturers need to make to maintain their competitiveness and capture new opportunities.”

Deputy Premier of Victoria and minister for regional and rural development Peter Ryan said “this plant will recycle around 80,000 tonnes a year of waste office paper, which equates to approximately 16 billion sheets of A4 copy paper or an amount that would cover the entire surface of a tennis court to a depth of one kilometre. In any terms this is an enormous environmental saving and benefit to the community.”

“Paper manufacturing also provides much-needed economic diversity to the Latrobe Valley and this expansion into recycling paper will help secure the future of the mill, which is one of Gippsland’s largest employers, injecting more than $100 million in wages into the local economy each year,” Ryan stated.

According to Nippon Paper Group, parent company of Australian Paper, the investment will assist Australian Paper position its products to have the highest environmental credentials, cost competitiveness and social responsibility required for the Australian market.”

“This new white paper recycling facility will enable us to broaden our recycled paper portfolio to a wide range of papers that will contain a variety of recycled content to meet consumer needs. The support of the Victorian and Commonwealth Governments was a key consideration for this investment by Nippon Paper Group,” Jim Henneberry, CEO of Australian Paper said.

Australian Paper expects that this plant will help it achieve a six-fold increase in output of recycled fibre containing papers and reduce its reliance on native forest fibre.

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