Nippon Paper announces that its Australian consolidated subsidiary Paper Australia Pty Ltd (Opal) will withdraw from the graphic paper business.
Opal manufactures and sells paperboard, kraft paper, graphic paper, corrugated board, and folding cartons in Australia and New Zealand. Opal’s Maryvale Mill in Victoria, Australia (MV Mill), one of Opal’s manufacturing sites, manufactures and sells graphic paper, paperboard, and kraft paper. MV Mill had sourced eucalyptus wood produced in Victoria’s state-owned forests as the raw material for bleached pulp, the main ingredient of graphic paper, from VicForests (VF), a Victorian state-owned forestry business.
With the withdrawal from the graphic paper business, Opal will focus on the packaging business, which is expected to grow in the future, and will strengthen its integrated packaging supply strategy in Oceania by transitioning the MV Mill into a sustainable packaging paper mill.
Nippon Paper said the completion date of withdrawal from the graphic papers business will take place within 2023.