Amcor Australasia has announced that it will build a new 345,000 tonnes per annum paper recycled mill at its plant in Botany, New South Wales. The mill will have a gross cost of more than $400 million.
Managing director of Amcor Australasia, Greg Beatty, said the new facility was one of the biggest single investments in the company’s history and would represent a pivotal part of its future.
“Over the past 18 months, Amcor Australasia has invested $75 million to substantially improve it’s corrugating and conversion operations.” he said.
“Building the new mill at our existing Botany site will substantially improve Amcor Australasia’s value proposition to customers by delivering a superior lightweight product.”
Mr Beatty said the new mill would produce paper-based products across a wider range of weights, creating packaging that was lighter, more efficient and far more environmentally friendly.
“The new mill will significantly improve environmental impact. Recycled and bore water will be used in the production process with minimal use of town water for backup purposes,” said Mr Beatty.
The new mill is expected to reduce water usage by 26%, energy use by 34% and waste to landfill by 75%.
The new facility will be built on a vacant section of Amcor Australasia’s Botany site, next to two of its existing paper mills. These two existing mills, plus Amcor Australasia’s paper mill at Fairfield, will be closed once the new facility becomes operational in 2010-11.
“We realise that aspects of this decision will be difficult for some of our employees at Fairfield and Botany. It will be business as usual for the next three years, at the end of which employees will receive their full entitlements as well as opportunities to re-train, professional career advice and an outplacement support program,” said Mr Beatty.
“We will work closely with employees and the unions on transitional arrangements, which balance the need to keep operating these mills until 2010-11 while helping employees to make a new start after that.”
There are currently 90 employees at the Fairfield site and 116 at Botany – about 3% of Amcor Australasia’s total workforce in Australia.
Approximately 60 employees will be offered ongoing employment at Botany beyond 2010-11. Opportunities for deployment of some employees to other Amcor Australasia sites may also be available.
Amcor Australasia will ultimately sell the 16 hectare Fairfield site and approximately half of the 20 hectare Botany site. Both sites will be fully remediated by Amcor Australasia. The net cost of the new facility, after the receipt of proceeds from land sales will be $230 million.