Major printers to test new magazine paper from Swanbank

The long awaited Swanbank paper mill project in Queensland is hoping to get the environmental green light before the end of June. It has lodged supplementary details to its Environmental Impact Statement with the state government in answer to a number of issues and questions raised by its original application.

Environmental approval is seen a major milestone in the progress of the controversial paper mill. According to a report in AUSNEWZ Pulp & Paper approval will go a long way in helping to complete the financial arrangements for the mill.

The economics of the mill are based on winning a 50 per cent market share in Australia and New Zealand in coated fine paper for magazine and folio sheets. Currently imports supply 80 per cent of apparent consumption in Australia (265 ktpa). In New Zealand imports account for 100 per cent of the 46 ktpa used there. Construction of the mill is planned to take two years with another two before it reaches full capacity. Further exports will target the West Coast of the USA.

Just in time delivery (JIT) and the quality of the paper are considered to be the project’s main competitive advantages. According to Graham Chappel, managing director of Infrastructure Project Group, imports are currently taking 12 weeks to arrive so the presence of a local mill will be of significant benefit to merchants and large printers who will be able to reduce inventory holdings.

Printers are being involved in the selection of quality and performance criteria for the mill, with two or three printing trials planned. Swanbank intends to use the current network of paper merchants, including PaperlinX companies.