Norwegian paper maker Norske Skog will soon be the first to produce light-weight coated paper for catalogues in Australia, since converting one of its newsprint machines in Tasmania in an $85m redevelopment at its Boyer mill. The continuing decline of newspapers and relative stability of catalogues led to the switch – the company hopes the move will be welcomed by Australian printers who will now be able to source their paper in two weeks, instead of up to 15 weeks from overseas suppliers. The paper, called Vantage, will be sold in Australian dollars, providing some shelter from exchange rate fluctuations, which contributed to paper rate rises of up to 10 per cent across the industry in March.

Norske Skog’s Boyer mill, in Tasmania

Andrew McKean, vice president of sales, marketing and logistics, says Norske Skog is keen to diversify away from newsprint and into more robust markets. He says, “We found that the catalogue market is not threatened by the internet, unlike newspapers, and there are just as many printed today as a decade ago. “Its demand fluctuations are more linked to the general economy but, when sales are up or down, it’s still a good time for retailers to be sending out catalogues.” The $85m Boyer mill project, which also extended the site, represents an increase in the company’s presence in Australia. While the mill’s production capacity remains unchanged, McKean expects revenues to rise as coated paper is higher priced than newsprint. Servicing the local market will also reduce the high cost of shipping paper to Asia; it was previously producing 140,000 tons of newsprint for the export market. All Boyer staff members have been retrained to operate the reconfigured machine.

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