Sydney, April 13, 2010 AEST (ABN Newswire) - Australian paper merchant and manufacturer PaperlinX Ltd (ASX:PPX) said today that it is in the final stage of exit from its Tasmanian manufacturing operations. It will close its Burnie Mill in Tasmania, with the balance of operations already closed. On completion of the closure, PaperlinX will solely become a merchant with business distributing paper, sign and display, graphics solutions and industrial packaging to a wide range of customers in Australia, New Zealand and Asia, Europe and North America.
Last year, PaperlinX completed an A$700 million sale of its manufacturing arm, Australian Paper, to Japan's Nippon Paper (TYO:3893). The sale immediately reduced the company's debt by A$500 million.
PaperlinX said the overall total net cash cost of its exit from Tasmania is expected to be around A$10 million to A$20 million. PaperlinX managing director, Tom Park, said the exit from Tasmania would cost the company less than it expected originally.
The company now is focussed on completing refinancing programme and on ensuring its competitive position is as robust as it can be in the uncertain economic times.
Michelle Liang Asia Business News Asia Bureau TEL: +61-2-9247-4344 Email: firstname.lastname@example.org