The Federal Government will provide a $9.5 million grant towards a $90 million project to construct a de-inked pulp plant at Australian Paper's pulp and paper mill at Maryvale in Victoria's Latrobe Valley.
The project will also receive support from the Victorian Government which has worked with the Australian Government to attract new investment to the region .
Construction of the project should begin late this year. Initial production is expected in early 2014.
The new plant will divert over 80,000 tonnes a year of white waste paper, that would otherwise be exported or go to landfill, into de-inked pulp which can then be used to manufacture recycled fine (white) paper.
Maryvale Mill is located in the heart of Gippsland, 160 kilometres east of Melbourne. It was built in 1937 and has been upgraded periodically over the years to improve efficiency and environmental performance.
The Maryvale Mill is Australia's largest integrated fine paper-making and packaging papers complex, producing more than 500,000 tonnes of paper every year.
The new plant will recycle around 80,000 tonnes a year of waste office paper, which equates to approximately 16 billion sheets of A4 copy paper (an amount that would cover the entire surface of a tennis court to a depth of one kilometre).
The plant's relocation and recommissioning will also be part financed by a loan from Low Carbon Australia.
This independent company was established by the Australian Government to deliver finance to help the move towards a low carbon economy.
[Images courtesy Australian Paper.]