Paper mill cuts 84 jobs, blaming Victorian government for lack of timber

Posted Fri 31 Jul 2026 at 8:04amFri 31 Jul 2026 at 8:04amOpal Australian Paper's Maryvale mill is located near Morwell and Traralgon in the Latrobe Valley. (ABC Gippsland: Kerrin Thomas)In short:More than 80 people will lose their jobs in the latest round of cuts at the Maryvale paper mill in Gippsland.The company, Opal Australian Paper has blamed the Victorian government for its failure to secure timber supply.The Victorian government has been contacted for comment.A major employer in Victoria's east has blamed the state government's failure to supply timber for its decision to axe 84 jobs.Opal Australian Paper operates the Maryvale paper mill, near Morwell in the Latrobe Valley.It was Australia's last remaining manufacturer of white paper until early 2023, when it ceased production and cut 156 jobs.Opal Australian Paper said the latest round of job cuts announced today followed a "detailed review of operations".Opal has announced moret han 80 people will lose their jobs at its Maryvale paper mill. (ABC News)"The end of white paper production has significantly changed the operational footprint of the Mill, and the site has been working to right-size its operations as a kraft and recycled paper manufacturer," the company said in a statement."This has included ongoing fixed cost reductions to align with its reduced footprint."The mill is one of the largest employers in the Latrobe Valley, which has a history of high unemployment stretching back to the privatisation of the state's coal-fired power industry in the 1990s.Protesters at the Maryvale mill in 2023, used a coffin to symbolise the death of the timber industry. (Kerrin Thomas)More recently, it has been hit by the closure of the Hazelwood power station in 2017, resulting in the loss of 900 jobs.Opal said it was proposing to make the cuts across "salaried team members and team members covered by the respective Maryvale enterprise agreements"."This number includes previously announced roles that are still in consultation, roles that have not been filled following voluntary departures or the end of fixed-term contracts and voluntary redundancies".In its statement, the company said it suffered "substantial losses due to the Victorian Government's failure to meet its contractual obligations under the Wood Pulp Agreement".The ABC has approached the Victorian government for comment.