Nippon Paper Industries has decided its Australian consolidated subsidiary Paper Australia Pty Ltd (“Opal”) will withdraw from the graphic paper business at the Maryvale Mill due to the recent suspension of timber harvesting in Victoria’s state forests.
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, one of Opal’s manufacturing sites, manufactures and sells graphic paper, paperboard, and kraft paper.
In connection with the withdrawal from the graphic paper business at the Maryvale Mill, the Company expects to record approximately 20 billion JPY in FY2023/3 as an impairment loss on fixed assets, etc.
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 Maryvale Mill into a sustainable packaging paper mill.