Timber shortage to impact white paper production.

 

Opal Australia Paper’s manufacturing plant in Victoria's Latrobe Valley is preparing to stand down up to 300 workers ahead of Christmas and has flagged the potential for permanent job losses because of a timber shortage.

 

Opal Australian Paper's Maryvale paper mill, near Morwell, has sent letters to unions representing its workforce outlining the plan.

 

According to a report by the ABC, the company has told the unions it will run out of supply for its white paper manufacturing sometime around 23 December. 

 

The ABC reported that Opal Australian Paper blamed the move on Supreme Court injunctions on its supplier, the Victorian Government-owned timber company VicForests.

 

The injunctions have resulted in the suspension of most timber harvesting.

 

The company said in the short term it was looking at temporarily standing down workers across three work groups and a "significant" reduction in the work of four others.

 

It said affected workers in both groups would have the opportunity to take paid leave or leave without pay, and it would consider temporary redeployments.  

 

Those who cannot take leave or be redeployed will be stood down.

 

The timing of the stand-downs is expected to be finalised over the coming weeks. The company  said is working to identify alternative timber supplies and considering scenarios where it could secure new supply.

 

It said the timing and cost of any new wood supply would form part of its long-term considerations about the future of white paper production.

 

In a letter obtained by the ABC, Opal stated: "As part of this scenario planning, Opal Australian Paper is also seriously considering a reduction in size or a permanent closure of the white side operations of the Maryvale Mill, in the event that the wood supply situation necessitates the business to make such a decision based on operational, financial and market considerations."

 

Opal Australian Paper is the Latrobe Valley's largest employer with about 800 direct employees.