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 Envi, the world’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 recognized brand name. The company also produces niche products such as high security papers for printing banknotes and passports.
SUSTAINABLE INITIATIVES
“We have successfully transitioned ourselves 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 Envi product that resulted earlier this year.”
The Envi product is accredited “whole-of-life” 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 and media and details our customers’ progress towards developing and enhancing the environmental reputation of their organizations. 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 that produces +200k megawatt hours per annum (a 42,000 household equivalent energy requirement), making it the largest renewable energy producer in Victoria.
The company also recycles approximately 70,000 tonnes of waste paper per annum. Of that, 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 fiber 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 percent and our water usage per tonne by 68 percent,” says Henneberry.
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 three,” 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. How we improve Australia for investment? How do we make sure we leverage better going forward and create a healthy, sustainable business?”
While the rising Australian dollar has had an impact on exports, Australian Paper has seen its share of local business rise from 40 percent to 60 percent. “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 recognized 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
OPERATIONS: Paper products manufacture and sales
ESTABLISHED: 1939
EMPLOYEES: 1700
REVENUE: $AU800 million
www.australianpaper.com.au
View Digital Corporate Profile of AustralianPaper in Manufacturing Digital January 2010