On completion of this closure, PaperlinX will be solely a merchanting company, with businesses distributing paper, sign and display, graphics solutions and industrial packaging to customers in Australia, New Zealand and Asia, Europe and North America.

The overall total net cash cost of PaperlinX’s exit from Tasmania will be between $10-20m, while PaperlinX is expected to include after tax significant items in its 2010 full year results of around $170m.

Commenting on the decision, Tom Park, managing director of PaperlinX says, “This has been a long and complex process and while it is disappointing that we have not been able to find a sustainable outcome for the Burnie operations we do believe that we have reached an outcome that is in the best interests of PaperlinX and its shareholders.”

Park continues, “We are pleased that we expect to complete our exit from paper manufacturing at a lower cost than initially thought, while continuing to meet all of our obligations.

“We are now focussed on completing our refinancing programme, which is progressing well, and on ensuring that our competitive position is as robust as it can be in these uncertain economic times.”

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