This Victoria-based paper producer is making a name for itself through sustainability – including the world’s first carbon neutral paper. Manufacturing Digital learns more
Written by Penelope Barker & Produced by Carolyn Wiggins
The paper industry has long been a target of environmental protests, but Australia’s leading manufacturer of paper products has changed perceptions of the industry through a strong corporate commitment to environmental stewardship, including the recent release of Reflex Carbon Neutral, Australia’s first carbon neutral paper.
Australian Paper has grown from humble beginnings in the 1930s to become the only domestic producer of fine papers for print and office applications in Australia, and the market leader in packaging paper solutions. The company’s two mills, the Maryvale Mill in rural Victoria and Shoalhaven Paper Mill in rural New South Wales, currently supply more than 500,000 tonnes of paper products throughout Australia and worldwide. From June, 2009, the company became a wholly owned subsidiary of the Nippon Paper Group.
The core of the business is copy paper, and the company’s Reflex brand is a highly recognised brand name. The company also produces niche products such as high security papers for printing banknotes and passports.
SUSTAINABLE INITIATIVES
“We have successfully commenced the transition process from form being perceived as a heavy industry to making a real impact through sustainability,” says CEO Jim Henneberry. “We looked at how to offset our carbon footprint and have invested $AU340 million over the last few years on implementing sustainable initiatives while also making our product better. The whole investment was based on market research that revealed consumers wanted a brighter and whiter copy paper that was also environmentally friendly. It was just wonderful to launch the new Carbon Neutral range of papers earlier this year.”
The carbon neutral products are accredited “whole-of-lifecycle” carbon neutral by the Australian Government’s Department of Climate Change. Along with the new product, Australian Paper has also started a program called EnTrust, an initiative to provide insight into both social and environmental trends and innovations as they relate to the broader paper sector.
“EnTrust is a consultative service available to our customers on a quarterly basis,” says Henneberry. “It provides broad information on items including environmental certifications, legislation and governance, media and details our customers’ progress towards developing and enhancing the environmental reputation of their organisations. We want to help our customers better understand the responsibilities of sustainability. Entrust is about demonstrating leadership and fostering a common understanding towards a sustainable economy that serves our community as a whole.”
Among the many environmentally sustainable initiatives undertaken by Australian Paper has been a major upgrade to the Maryvale Mill including a new renewable energy power station which produces 200k+ megawatt hours per annum (a 42,000 household equivalent energy requirement), making it the largest industrial renewable energy producer in Victoria.
The company also recycles approximately 70,000 tonnes of waste paper per annum. 60,000 tonnes of waste from paper production that would previously have gone to landfill is composted each year and sold as soil mulch. All fibre used in manufacturing has environmental certification (FSC/PEFC). Australian Paper is a member of the World Wildlife Fund Australia Forest and Trade Network and all wood for paper/pulp is carefully sourced for the lowest possible environmental impact.
Environmental audits are conducted regularly at both of the company’s mills, by both company personnel and external consultants. In addition, the Maryvale Mill, the largest pulp and paper making complex in Australia, has a fully functioning Environmental Management System (EMS). This comprehensive system of management procedures is designed to control environmental impact and includes a commitment to pollution prevention and continuous improvement. The mill is also one of the most efficient users of water in the worldwide paper market and any waste products that are polluting are treated extensively to make them safe.
“We’ve also decreased our CO2 intensity by 23 per cent and our water usage per tonne by 68 per cent,” says Henneberry.
Strategically the companies Shoalhaven Mill decided years ago its best chance of developing a sustainable business model was to not compete with volume producers in South East Asia. Instead, Shoalhaven has developed a boutique model. The focus is not on volume, but rather - premium products at high average sell prices, short job runs and high market responsiveness. This model has produced a small global niche and today includes exports of security and watermark papers into Asia and Europe.
NEW OWNERS, GRAND PLANS
The new owners of Australian Paper, Nippon Paper Group, have had expertise in traditional paper-making in Japan for 130 years and are among the top 10 paper producers in the world. “Currently, NPG is placed at number nine, but they are aiming to be in the top five,” says Henneberry. “The company sees Australia as a wonderful opportunity and the new ownership is proving a very good partnership at all levels.”
The findings of a current Australian Government review of the pulp and paper industry are due for release by the end of 2009. “Everyone has been working very cooperatively on the review process,” says Henneberry. “It’s a pretty exciting time. It’s all about looking at unique sustainable opportunities. Historically this has been high quality timber and low cost energy. Going forward the industry will need to invest more in renewable energy and bio-fuels.’ How we improve Australia for investment? How do we make sure we leverage better going forward and create a healthy, sustainable industry?
While the rising Australian dollar has had an impact on exports, Australian Paper has seen its domestic market share of office papers rise from 40 per cent to 60 per cent in less than 5 years. “This shows how respected our products are within the Australian market,” says Henneberry. “Many large corporations now have a sustainability manager and as we become recognised for our sustainable initiatives we are picking up a lot of important sales.
“We are now positioning for growth and expansion. We are focused on our competitive strengths and creating a fully integrated business, where supply chain, finances and all operations become seamless.”
FACTS AT A GLANCE:
Company Name: Australian Paper
CEO: Jim Henneberry
Year Established: 1939
No. of Employees: 1200
Annual Revenue: $AU800 million
Operations: Paper products manufacture and sales
www.australianpaper.com.au
View Digital Corporate Profile of Australian Paper in Manufacturing Digital December 2009