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Revamped mill to boost Australian Paper

Tuesday, 16 December 2008
By Print 21 Online Article

It’s been a long time coming, but the upgrade of PaperlinX’s Maryvale pulp mill is finally complete.

With the first pulp already produced, the new plant has started up in conjunction with the mandatory site boiler inspections and is expected to contribute $30 million of incremental earnings in the 2009 fiscal year, and an annualised incremental earnings of between $40-50 million.

Tom Park, managing director of PaperlinX acknowledged that the upgrade was “a challenging product undertaken during a volatile period”, but he also noted that once its optimization phase is complete, the mill will have a 90,000mt per annum increase in production of bleached eucalypt pup along with improvements to both its environmental performance and overall product quality.

“Costs and timing have significantly over-run from our original estimated, but the long-term return expectations and strategic rationale have remained sound throughout,” Park said.

PaperlinX recently suffered a major blow when it reached only $150 million of the $200 million needed to repair debts. Park hopes that a more efficient and improved mill will help to steer the company back on track.

“We are very pleased that the project has been completed and that we can now look forward to the contribution that will be made to business returns,” he said.

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