Producer of pulp, paper and fibre-based packaging, Oji Fibre Solutions is in the development stage of a new paper-based packaging facility in Yatala, Queensland.
The new facility, which the company has invested approximately $68m in will manufacture corrugated boxes for end use segments such as horticulture, meat, beverage, FMCG, industrial and distributors.
According to Oji, it will use the latest manufacturing technology, housed within a Green Star rated building and will initially employ a staff of 50.
Oji chief executive Dr Jon Ryder says the plant confirms the company’s commitment to grow its business in Australia and New Zealand.
He says, “We believe there is opportunity to take advantage of the increasing demand for corrugated packaging in Queensland, and the Yatala project fits our strategy to increase vertical integration across our pulp, paper and packaging businesses.”
The company is already established in New South Wales and Victoria. Oji general manager of packaging Australia, Nick Molloy says a new plant makes sense for the company.
“The corrugated market is growing, certainly not every state is sharing the same growth rate but Queensland is growing the fastest of all states,” he says.
"I think the recent offshoring of manufacturing in certain sectors and increased import competition has likely played a part, for example the folding carton and litho-laminating markets have been more prone to imports than corrugated."
Australian and New Zealand pulp and paper industry bible, Industry Edge reports Australia’s consumption of packaging and industrial papers grew by a healthy 12.1 per cent between 2015 and 2016, compared to the year prior.
Industry Edge says the strong growth was driven by the consumption of corrugated boxes which reached more than 1.5 million tonnes.
Production rose six per cent over the year, while exports declined two per cent and imports increased by 8.1 per cent.
Packaging and industrial grade paper imports were dominated by New Zealand, which was responsible for 43.1 per cent of the total.
The development of the plant has received funding support from the Queensland State Government’s Advance Queensland Industry Attraction Fund and also the Gold Coast City Council’s Investment Attraction Program.
The plant is on track for completion by the end of the year and will be fully-functional by fourth quarter, 2017.
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