Acting Premier and Minister for Regional and Rural Development Peter Ryan today announced Victorian Coalition Government funding of $250,000 to help Australian Paper explore the opportunity to establish a $90 million recycled paper facility in the Latrobe Valley.
Mr Ryan said the proposed facility at Australian Paper’s Maryvale mill would significantly increase white paper recycling in Australia and triple the amount of locally sourced waste paper used - to 80,000 tonnes per year - in Australian-made communication papers.
“Australian Paper is the only manufacturer in Australia of recycled white communications papers which is made from reclaimed white waste paper that has gone through a screening, cleaning and de-inking process to remove contaminants,” Mr Ryan said.
“The current supplier of de-inked pulp (DIP) to Australian Paper will be closing its facility before the end of the year, therefore Australian Paper will investigate options urgently in order to secure its future in recycled paper products.”
Mr Ryan said Australian Paper would undertake a $825,000 full feasibility and engineering study to support the business case for a $90 million DIP plant at Maryvale.
“The proposed plant will significantly increase the amount of recycled fibre used in the manufacturing of its office and printing paper,” Mr Ryan said.
“The plant is also expected to retain eight jobs, create 12 new jobs and employ up to 60 workers during construction.”
Mr Ryan said Coalition Government funding for the feasibility study would be provided to Australian Paper, which would provide the balance of funding.
“Coalition Government funding is being provided through the $1 billion Regional Growth Fund’s Developing Stronger Regions Program, which provides support for studies to enable applicants to investigate the technical and economic viability of a project,” Mr Ryan said.
Mr Ryan said following the feasibility study, a final decision to proceed with construction of the DIP plant is to be made by the end of the year.
Media contact: Sonia Heath 0413 485 526