TRAGIC END COMING AS MARYVALE FLAGS PRINT PAPER CLOSURE

In a tragic but inevitable move, Opal is now looking at closing down Australia’s only printing papers manufacturing operation at its Maryvale mill, with the company unable to source new logs following an adverse court decision.

Printed paper manufacturing at the mill stopped the day before Christmas Eve when it ran out of logs. The company had been producing some 200,000 tonnes of white paper a year, split 50/50 between uncoated woodfree (UWF) and copier grades.

Logging contractors were effectively banned from logging a month prior, thanks to a judgement in favour of environmental activists concerned about the fate of a rare possum in Victoria’s native forests. The judge ordered loggers to take increased precautions, but the loggers said they were doing all they can, and forestry manager, state-owned VicForests, said it was effectively a banning order. VicForests has appealed the Supreme Court decision, which came after a years-long campaign by local activists.

Maryvale produces a significant amount of the UWF used in Australia’s offset printing, including forms and envelopes. Major merchants Ball & Doggett and Spicers are assuring printers that they are able to source alternate grades from their overseas suppliers.

The mill also produces the vast majority of copier papers used in Australia, with its dominant Reflex brand, and several others. Major supplier Office Brands, for instance, sourced 98 per cent of its copier paper from Maryvale. The local copier paper market is now seriously challenged. Copier papers are likely to rise in price by at least 50 per cent, as they are all subject to anti-dumping tariffs.

Maryvale operates on a log-to-sheet business model, and despite extensive efforts, has been unable to source alternate logs on a viable economic basis. The nearest alternate logs would have to come from 600km away from the mill. Importing pulp would likewise be an unviable proposition.

The closure of the papermaking line would see 300 well-paid regional workers get the sack. The mill is the biggest employer in the area, with 850 staff. Maryvale also produces packaging grades, but these are unaffected as they come from a different type of log (softwood) as opposed to hardwood for the printing papers grades.

The company said, “Despite our best endeavours, Opal has been unable to source viable alternative wood supplies to replace the VicForests shortfall.

“As a result, we are now seriously considering the potential future closure of white side operations at the Maryvale Mill and are consulting with our team members on this scenario.”

The Maryvale situation represents an element of the current national debate over the environment in a microcosm: a business being forced to close, with jobs lost, while claiming its activities are not actually harmful. VicForests has the rights to manage the state's forests, in return it gets to log about 0.1 per cent of the trees each year, most of which it says are either fallen, a bushfire risk, or stifling growth in the forest. However, activists disagree and have long been campaigning for an end to logging. Now, the paper that would have been produced locally will have to be shipped into the country, with the associated emissions from transport, while the money is shipped out of the Australian economy.