Restructuring its Opal business in Australia is a top priority for the company’s Japanese owner.

 

In a presentation outlining its medium-term strategy, Nippon Paper Group revealed that Opal recorded an operating loss of $151 million (US$100 million) in the 12 months to 31 March 2024 (FY23). The bulk of that ($128 million) was due to the Maryvale Mill in Victoria – where office paper production was permanently halted last year.

 

Nippon is aiming for Opal to edge to profitability in the year ending March 2026, with improving results in its packaging business forecast to more than offset continued – but narrowing – losses at the Maryvale facility. 

 

The company said it will “explore additional profit improvement measures” for Maryvale over and above the plans it has in place for the next two years – which include headcount reductions.

 

It’s not just overseas where Nippon has challenges to tackle. In the past five years, shipments of graphic paper (newsprint, print and communication papers) in Japan have declined by 33 per cent, according to the local paper association. 

 

In FY23, Nippon’s business communication paper volumes fell by 8.1% to 378,000 tonnes, and the company is forecasting a further four per cent drop this year.

 

For more on this story and other global news from OPI go to: https://www.opi.net/news/region/003-australasia/opal-transformation-a-pr...