PaperlinX has completed the initial review of its Tasmanian paper manufacturing business, Tas Paper, however the company has not yet made any decision on the fate of the mills at Burnie and Wesley Vale.
The review included discussions with many different parties and has considered four main options including retention of the existing business model, partial closure, closure or sale.Tom Park, managing director of PaperlinX says, “The review projected an unacceptable financial loss for Tas Paper in the current environment, so we will now work with all of the key stakeholders to develop models that may produce more positive future outcomes.”
He continues, “These stakeholders include our employees, shareholders, customers, Government and our lenders. We are continuing discussions with both the Tasmanian and Federal Governments and will also look for any guidance to come from the Federal Government’s review of the Australian Pulp and Paper Industry due to complete late in the calendar year.”
PaperlinX has not given any time-line on when a finalised decision will be made.
