Australian $650m pulp mill planned

Pulp Mill for SA Plantation Gum Trees

Penola Pulp yesterday announced plans to build a AU$650 MILLION pulp mill west of Penola in the South East of South Australia, subject to government and council approvals. Penola is approximately 140 Kms south east of Kingston SE.

The project would generate more than 600 jobs during construction and employ 120 people permanently. It would produce 350,000 tonnes of pulp a year from about 700,000 tonnes of wood from locally grown blue gums.

A consortium of companies including Timbercorp, Orica, CellMark, Andritz and Silcar is supporting the project.

Penola Pulp project director John Roche said Australia imported $3 billion worth of pulp and paper a year and was at the same time the world's largest exporter of pulp chips.

Limestone Coast Regional Development Board chief executive Grant King said the announcement was "terrific news".

The project is expected to increase the value added to locally grown timber which is presently used for the less valuable wood chips exported mainly to Japan.

Original story By JEMMA CHAPMAN
18nov05

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