Opal Australian Paper says it is now seriously considering the potential future closure of its white side operations at the Maryvale Mill and is consulting with its team members on this scenario. Source: Timberbiz
Opal said in a statement this week that while it will be consulting extensively with its Maryvale team members, no operational decisions have been reached at this stage.
“To be viable the alternative supplies must match a range of strict criteria including species, availability, volume, cost, logistics and long-term supply,” the company said.
Opal has been considering a number of different operational scenarios for the longer term, in case possible alternative wood sources are below the volumes required or are not commercially feasible.
“Despite our best endeavours, Opal has been unable to source viable alternative wood supplies to replace the VicForests shortfall,” the company stated.
Opal Australian Paper has struggled to source the native timber needed to produce white paper because of regulations placed on logging after multiple long court battles.
The laws have left VicForests unable to meet some contracts and the Maryvale mill emptied its stockpile in the time spent seeking a solution.
“We remain focused on securing the future of the Maryvale site which has a key role to play in manufacturing paper for the Opal Packaging Division,” the company said.
“We have reached an agreement with the Victorian Government ensuring that until mid-February Opal team members who may be stood down will receive full pay.
“This is intended to provide certainty for Opal team members while the company and the Victorian Government progress discussions on any further support for the Mill’s future operations.”
Meanwhile Melbourne’s Herald Sun reports that the cost of paper is expected to double, and the price of schoolbooks and stationery could soar because of the situation at Maryvale.
Office Brands, a group representing businesses that provide stationery supplies, has warned of cost-of-living pressures directly linked to the end of white-paper production at Maryvale mill.
Office Brands chief executive Adam Joy told the Herald Sun that since the shutdown, the cost of a ream of paper had gone from $4 to $7 because companies and stationery stores were now being hit with massive tariffs to import paper for print. They were introduced to prevent dumping.
“Supply of white paper has now stopped in Australia and we’re all importing,” he said.
“You’re already seeing prices moving up, almost weekly, from the wholesale cost of sourcing the paper. The price is moving very fast.”
Mr Joy told the Herald Sun small businesses would be caught up in the price rises, as would educators and government departments that relied on the paper. And paper-related products such as printers, cartridges and laminators would cost more.
