Plantation woodchip mill for Albany

17/3/00
Oji Paper and Itochu Corporation have given the go-ahead for a $50 million plantation woodchip mill near Albany.
Resources Development Minister Colin Barnett said today the Oji-Itochu joint project represented the beginning of a vibrant wood processing industry for the Albany region.
"The Albany region stands to gain significant economic benefits from the development of a plantation based wood processing industry," Mr Barnett said.

"This new woodchip project will create an extra 230 direct jobs which is great for the region's economy.
"The project is part of the transition from native to plantation timbers which is important to the broader Western Australian community and the producers and consumers of paper products."

Mr Barnett said the big plantation area under development in the Albany region would lead to further opportunities in higher level wood processing industries - such as sawn timber, processed board products and laminated veneer lumber - in the years ahead.
He said with the prospect of further wood processing industries being established, it was estimated that by 2005 about 1,140 full-time positions would be created in the industry and an extra $450 million generated for the State's economy each year.
With associated plant and infrastructure, the total expenditure on the Oji-Itchu project would approach $50 million by 2003.
"Oji-Itochu plans to export 300,000 to 400,000 tonnes of plantation woodchips through the Port of Albany each year for the first two years of production with a likely expansion taking production to more than a million tonnes by 2007," Mr Barnett said. .
"The woodchips will be transported to port by rail from the Down Road site near the Mirambeena Industrial Estate.
"A 2.3 kilometre spur line will be constructed from the mill to the main railway line."
Mr Barnett said under the Albany Hardwood Plantation Agreement Act 1993 - administered by the Department of Resources Development - the Albany Plantation Forest Company had the right to establish commercial hardwood plantations in the Albany region.
Albany Plantation Forest Company comprises Oji Paper, Itochu Corporation and Senshukai Co Ltd.
In July last year Mr Barnett announced State Government approval for a $5 million multi-user infrastructure assistance package to support the development of a plantation wood processing industry in Albany.
He said new infrastructure would be available to all users on a commercial, user-pays basis and the State Government would not be giving any financial assistance to the companies involved in developing the project.
State Government agencies including Westrail, Main Roads and the Albany Port Authority would be involved in providing the infrastructure.
The package included road upgrades, construction of the rail spur and land for wood processing industries including the proposed plantation woodchip mill.
It also included the construction of Berth Six at the Port of Albany which would cater for the export of all woodchips produced in the Great Southern Region.
Mr Barnett said the Department of Transport, industry and local government were examining options for an upgrade of key log haul routes in the area with an estimated six trucks a day carrying logs to the mill during the first two years of production.
He said the Oji Paper Company - established in 1973 - was the biggest pulp and paper company in Japan where it had 17 paper mills and 23 manufacturing plants.
The Itochu Corporation, which celebrated its 50th anniversary in 1999, is a trading house with an annual turnover in 1998/1999 of A $191 billion.

Media contact: Diana Callander 9222 9699