PaperlinX Ltd, Australia, this week announced that its Burnie Mill in Tasmania will be closed. The closure of the remaining operations at the Burnie Mill is the final stage of PaperlinX's exit from its Tasmanian paper manufacturing operations, with the balance of operations already closed. On completion of this closure, PaperlinX will be solely a merchanting company, with businesses distributing paper, sign, and display graphics solutions and industrial packaging to customers in Australia, New Zealand, and Asia, Europe, and North America.
The overall total net cash cost of PaperlinX's exit from Tasmania is still expected to be around A$10-20 million, while PaperlinX is expected to include after tax significant items in its 2010 full year results of around A$170 million, including non-cash accounting items as a result of the closure, in line with previous guidance. A$134 million of the total after tax significant items was already included in the first half results released in February, and Tas Paper results will be reported under "Discontinued Operations" for the 2010 financial year.
TAPPI
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