Opal Maryvale Mill Update
- The current VicForests situation continues to create supply challenges for the Maryvale Mill.
- Opal Australian Paper will continue to work hard to identify alternative wood supply options. To date, sufficient volumes of suitable alternatives have not been identified.
- While we pursue substitute wood supply possibilities, this difficult situation means as a consequence, white paper production is expected to be impacted on or around 23 December.
- It is anticipated there will be temporary stand downs and a reduction in workloads for a number of workgroups in the coming months. We are continuing to consult with our affected team members on this critical issue.
- As the availability of viable alternative wood supply remains uncertain, Opal is considering a number of different operational scenarios in the longer term, in the case that viable alternative supply is below the required volume or not able to be supplied.
- Given the uncertainty and current lack of supply, as part of our longer term scenario planning, Opal is considering a reduction in size or the closure of white paper production at the Maryvale Mill.
- In the case of this event, Opal anticipates this would result in a reduction in the size of the workforce and potential redundancies.
- This is a complex and ever-changing situation and no longer term decisions on operational changes have been made at this stage. Opal is consulting with our team members in workgroups that may be potentially affected.
- Opal is also continuing to work through this situation as a priority with our valued customers and suppliers, particularly with respect to any possible longer term market impacts.
- We appreciate this is a very difficult and unsettling time and we remain committed to keeping our team members and key stakeholders updated on the situation as it develops.