Future of $90m Victorian recycling plant hanging in the balance

Australia may lose its only source of locally supplied recycled pulp if the community doesn't get behind a proposed $90 million recycling plant.

Australian Paper will this month finish a feasibility study into building a recycling plant and associated equipment at its Maryvale mill.

The study began in March after Australian Paper's current supplier of recycled fibre, Amcor, announced it would be closing its Fairfield facility in August.

Senior marketing manager for sustainability Craig Dunn told ProPrint that the country would be left without locally sourced recycled paper if an Australian Paper plant didn't take its place.

The project would require a $90 million investment and generate 20 on-site jobs, 60 indirect jobs and 60 construction jobs, according to the company. Construction would begin in "late 2012" with the plant to open in "early 2014".

Dunn said parent Nippon Paper Group would consider the study's findings in August before announcing its decision in September.

Community support will be an important factor in deciding whether to proceed with the project, according to chief executive Jim Henneberry.

“We need a clear commitment of support for Australian-made recycled paper from the community, as well as Local, State and Federal government, as part of our feasibility study," he said.

“We’re calling on all Australians to take a stand for recycled paper and [sign our online petition]. We’ll be recording the total number of signatures as part of our feasibility study to show that Australians want this investment to happen."

Dunn told ProPrint that Australian Paper was working closely with the authorities to ensure regulatory approval for the project if it received the go-ahead from Nippon Paper.

He said print buyers were placing an increasing emphasis on sustainability and that recycled paper was highly regarded by the public.

"We've been a pioneer in recycled paper and it's a high-growth market," he said.

The recycling plant would create 50,000 tons of premium recycled pulp per year and divert 80,000 tons of waste paper from landfill or export each year, according to the company.