Pulp, paper and packaging converter Oji Fibre Solutions says it will build a paper-based packaging facility in Yatala, Queensland. This will expand Oji's fibre business in Australia and will enable it to grow its customer base along the Eastern Seaboard and beyond.
Since its purchase of Carter Holt Harvey Pulp & Packaging in 2014, the Japanese-owned company has undertaken an expansion and upgrade project at the company's Auckland paper bag making facility, which is on track for completion in 2016, and further investments in its pulp, paper and packaging facilities in New Zealand and Australia.
The new Green-star rated facility in Yatala, which initially will create 50 new jobs, will manufacture and supply corrugated packaging products to end use markets throughout Queensland, Northern New South Wales and Northern Territory. The facility will complement the company's existing corrugated plants in Sydney and Melbourne.
According to market analyst Industry Edge, this investment comes off the back of the substantial lift in demand for corrugated packaging experienced in Australia in 2015-16, growing by 12.1% in the last financial year.
This level of commitment is an indicator of growth in demand for corrugated packaging in the region, particularly for shipping fresh and chilled produce.
Oji is the first major player to invest in this opportunity.
Oji says the development has received support from the Queensland State Government through the Advance Queensland Industry Attraction Fund, and from the Gold Coast City Council’s Investment Attraction Program
GM for Australia Nick Molloy said the move is in response to market demand: “Oji Fibre Solutions is broadly recognised for our high performance packaging products, particularly for demanding supply chains. The market has encouraged us to expand our manufacturing footprint and we look forward to offering customers more choice.”
Oji's CEO Dr Jon Ryder said: “We believe there is opportunity to take advantage of the increasing demand for corrugated packaging in Queensland and the Yatala project fits our strategy to increase vertical integration across our pulp, paper and packaging businesses.”
Oji Fibre Solutions packaging facilities produce a range of paper-based products for the horticulture, dairy, meat, beverage, seafood, reseller and industrial sectors in New Zealand and Australia.
