PaperlinX pulls the plug on Burnie paper mill

Closure of Burnie mill signals an end to PaperlinX’s manufacturing operations in Australia as it transforms into a purely paper merchant company.

The Tasmanian paper manufacturing operation, which employs 165 staff, will close by the end of June this year. Spokesperson, David Quinn, told Print21 that after the mill failed to attract a buyer, there was no other option but to close. “The company has been trying to find another buyer – they had an offer but it wasn’t adequate,” he said.

The exit is expected to come at a cost of between $10-20 million to PaperlinX. On completion of the closure, it will focus on being a merchanting company with businesses distributing paper, sign and display, graphics solutions and industrial packaging to customers throughout Australia, New Zealand and Asia, Europe and North America.

Backing out of Burnie was not an easy decision, according to Tom Park, managing director of PaperlinX. “This has been a long and complex process and while it is disappointing that we have not been able to find a sustainable outcome for the Burnie operations, we do believe that we have reached an outcome that is in the best interests of PaperlinX and its shareholders,” he said.

Talk of closing the Burnie mill has been ongoing since last year. Park believes that the closure will put PaperlinX in a better financial position. “We are now focussed on completing our refinancing program, which is progressing well, and on ensuring that our competitive position is as robust as it can be in these uncertain economic times,” he added.

Tough times for Tassie workers

Today's news has cast a dark cloud over staff throughout Tasmania who now face an up-hill battle in finding work.

According to Anne Urquhart, (pictured) Tasmanian state secretary of the Australian Manufacturing Workers' Union, the PaperlinX closure is not in isolation; she also cited recent lay-offs at McCain in nearby Smithton as contributng to the unemployment drought throughout the state.

"The news from PaperlinX today is going to have a devastating effect in a small regional area," she said.

Urquhart believes that it will be a case of over-supply and under-demand for workers competing for jobs. "A lot of these employees are very highly skilled and could apply these skills to different environments," she said, "but the sheer numbers mean it will be extremely difficult for people to find full-time work to fill the hole that these closures have created."