After selling its Australia-based paper manufacturing interests to Nippon Paper Group of Japan, in February 2009, PaperlinX yesterday announced plans to close its Wesley Vale operation in Tasmania as well as portions of its Burnie operation in Australia.
These cost-cutting efforts will result in PaperlinX becoming a pure paper-merchant company, focusing on the distribution of various paper, large-format and packaging materials. The paper-manufacturing closures are expected to effect around 250 Australian jobs.
PaperlinX made the announcement as it outlined progress on “new regional asset-based borrowing facilities,” which is an effort to restructure its approach to obtaining credit facilities. According to a statement, since July 2009, PaperlinX has secured a US$40 million facility in the United States; a NZ$35 million facility in New Zealand; and is in the process of finalizing a C$50 million facility in Canada and a A$80 million facility in Australia.
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