Printing and distribution company PaperlinX Ltd
(ASX:PPX) has announced the closure of its Burnie Mill in Tasmania signalling the end of the company’s paper operations.
PaperlinX says the closure of the mill is the final stage of its exit from its Tasmanian paper manufacturing operations.
The company will now solely operate as a distributor of 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.
PaperlinX says the overall total net cash cost of its exit from Tasmania is still expected to be around $10 - $20 million, while the company expects to include write-downs of around $170 million in its 2010 full year result.
Managing director Tom Park says the company was unable to find a sustainable outcome for the Burnie operations, and says while it is disappointing the outcome is in the best interests of shareholders.
Mr Park says the company expects to complete its exit from paper manufacturing at a lower cost than initially thought.
He says the company is now focused on completing its refinancing program, and on ensuring that its competitive position is as robust as it can be in these uncertain economic times.
PaperlinX reported a $798.2 million loss for the 2009 financial year.
