You can’t ‘rely on locally-made Reflex’ anymore.

 

Nippon Paper Industries has announced the permanent closure of Opal Australian Paper’s white graphics paper plant in Australia.

 

The Japanese-owned company issued a statement yesterday as part of a global financial results update.

 

See Opal Australian Paper's latest update (issued earlier today) in a separate article. 

 

The head office decision follows months of disruptions due to well-documented industrial issues involving timber supply at its Maryvale mill in Victoria.

 

The closure of the white paper plant, which manufactured the leading Reflex brand, means the end of local production of A4 white copy with all future supply dependent on imported product, much of which is currently subject to import duties.

 

Last week, Office Products News reported that local packaging firm Jackaroo, after several submissions, succeeded in getting the Anti-Dumping Commission to conduct an exemption inquiry on the basis that Opal Australian Paper is reportedly importing paper from China to meet domestic demand following the cessation of white paper production at its Victorian mill.

 

The ADC said there is no time frame for completing its report but if any interested parties want to make submissions, they have until 24 February to do so.

 

Nippon Paper said that with the withdrawal from the graphic paper business, Opal will focus on the packaging business and will strengthen its integrated packaging supply strategy in Oceania by transitioning the Maryvale plant into a sustainable packaging paper mill. 

 

The discontinued graphic paper business accounted for 220,000 tonnes of copy paper with annual sales of $264 million.

 

Nippon Paper said it will record an impairment loss of approximately $216,000 on fixed assets with the closure of the graphic paper business.

 

According to local news reports, around 200 jobs at the Maryvale mill are under threat due to the closure of white paper operations.

 

The future of Opal Australian Paper's sales, marketing and administration staff has not been addressed in the company's latest update.