Australian Paper's Shoalhaven mill in New South Wales, Australia, at risk of closing despite recent government contract for security passport paper, due to declining demand for printing paper, competition from cheap imports, says mill's manager

Debra Garcia

LOS ANGELES , July 8, 2014 (Industry Intelligence Inc.) – Australian Paper’s Shoalhaven paper mill in New South Wales, Australia, remains at risk of closing despite recently being awarded the federal contract for security passport paper, reported ProPrint on July 3.

The mill currently operates just one paper machine, making about 12,000 tonnes/year, down from 70,000 tonnes/year on three paper machines in 2006, said Bruce Borchardt, mill manager.

In the past two years, work shifts have been reduced to three from five, resulting in the loss of 30 jobs, mostly from voluntary redundancies, Borchardt said, reported ProPrint.

Although the one-year extension of the government contract to supply security passport paper will help, the mill remains under pressure from a declining market for printing papers and competition from cheap imports, he said.

The Shoalhaven mill produces specialty papers, ranging from printing paper for letterheads and annual reports to wet-strength paper for maps and tea bags, according to the company’s website.

Papers produced at the mill are not manufactured anywhere else in Australia, said Borchardt. Australian Paper is owned by Japan-based Nippon Paper Industries Co. Ltd.

Australian Paper is urging the Australian government to buy Australia-made paper for its reports, brochures, business cards, ballot papers, business stationary and other uses, said Borchardt.

A policy to purchase the mill’s recycled paper also would be in-line with the government’s ICT Sustainability plan and would set an example that others might follow, he said, ProPrint reported.

The primary source of this article is ProPrint, Paramatta, New South Wales, Australia, on July 3, 2014. Click here to view full version of primary source's original article.

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