Amcor's new plant not so run of the mill

Amcor's plan for a new recycled paper mill in Botany also spells the end of jobs for some Victorian employees.

The new $400 million paper mill will be installed on a vacant section at Amcor's Botany site and is expected to operational between 2010-2011. Once it is up and running, both the current Botany mill and mill in Fairfield, Victoria, will be remediated.

However, Greg Beatty, managing director of Amcor Australasia, remains confident that the new mill will not pose a serious threat to the future of employees.

"We realise that aspects of this decision will be difficult for some of our employees at Fairfield and Botany. It will be business as usual for the next three years, at the end of which employees will receive their full entitlements as well as opportunities to retrain, professional career advice and an outplacement support program," he said.

The current Botany site has 116 employees, and Fairfield 90. Approximately 60 employees will be offered ongoing employment at the Botany site from 2010-11.

"We will work closely with employees and the unions on transitional arrangements, which balance the needs to keep these mills until 2012-11 while helping employees to make a new start after that," Beatty added.

Beatty described the new facility as one of the biggest single investments in the company's history. "Building the new mill at our existing Botany site will substantially improve Amcor's value proposition to customers by delivering a superior lightweight product," he said.

Beatty also pointed to a number of environmental initiatives such as the use of recycled and bore water in the production process. "The new mill will significantly improve environmental impact," he said.