As many as 200 people will lose their jobs as Australia’s last white paper manufacturer closes.
Opal Australia, based in Maryborough in Victoria, will stop producing graphic paper, documents seen by the ABC show.
Just before New Year, 35 of the company’s workers were told they were going to be stood down with full pay for an indefinite period of time.
According to AAP, a further 120 workers were facing also being stood down in January or February.
Opal reportedly employed 850 workers at its Maryvale mill, according to The Weekly Times, prior to the temporary stand downs, and is the Latrobe Valley’s biggest employer.
The workplace was reportedly devastated by a court decision which crippled its ability to make paper.
In early November, government-owned timber business VicForests lost a Supreme Court case which found it was not doing enough to protect endangered wildlife including two possum species.
As a result, the company was ordered to scale back its timber harvesting in parts of rural Victoria.
VicForests was a massive supplier for Opal Australian Paper and they have been unable to obtain the necessary materials since for paper to be created.
After the court order, the paper producer flagged that stand downs was a very real possibility.
“Unfortunately, limited stand-downs may become necessary and we are currently consulting on this issue with our team members,” Opal Australian Paper said in a statement 10 days after the court decision, per TheWeekly Times.
“Our priority is to continue to keep our team members fully updated on the situation as it develops further …
“As a large Latrobe Valley employer, secure, certified wood supply is crucial to Opal Australian Paper’s Maryvale operations.”