Job uncertainty at SA tissue mill after takeover, union calls for government support

Millicent plant, one of Australia's largest toilet roll manufacturers, faces potential job cuts as new owner Arbex flags a 'transformation program'

By LineZotpaper
Published
Read Time2 min
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The national timber union is calling for greater government support for local manufacturing amid fears of job cuts at the Millicent tissue mill, one of Australia's largest toilet roll producers, following its takeover by international hygiene company Arbex earlier this year.

The Millicent tissue mill, which has been operating in the regional South Australian town since 1960, currently employs about 400 people, a significant decline from the approximately 1,000 workers it had in the 1980s. The site was formerly owned by Kimberly-Clark Australia before being taken over by Arbex, a joint venture between Brazilian pulp producer Suzano and Kimberly-Clark.

The Timber, Furnishing and Textiles Union confirmed it is in discussions with management about what it described as "reported changes and their implications for workers." Union district secretary Denise Campbell-Burns said the union would advocate strongly for the workers, their families and the broader Millicent community, which has a population of about 4,700. At the same time, the union declined to speculate on how many jobs could be affected.

In a statement, Arbex confirmed it was in talks about a "proposed transformation program" at the site, but insisted that "Millicent remains a critical part of Arbex's Australian manufacturing network." The company declined to comment further on the potential impact on jobs, noting that consultation was ongoing.

Wattle Range Mayor Des Noll highlighted the mill's importance to the area, noting that over its six decades of operation, thousands of locals have worked there. "Employees within our community and the region have held careers here from when they left school to when they've retired," he said. "Some of these employees have been here for 50 years. For every one employee, it's supported three others in our community, as well as local contractors."

The union has called on governments to do more to strengthen local manufacturing, a plea that resonates in Millicent, where the mill is a longstanding pillar of the economy.

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Analysis

Why This Matters

  • Job losses at the mill would directly affect the tight-knit community of Millicent, where about 400 jobs are at stake in a town of 4,700 people.
  • The outcome could set a precedent for regional manufacturing in Australia amid ongoing concerns about industry consolidation and foreign ownership.
  • The transformation program may signal strategic shifts that affect supply chains for Australian household essentials like toilet paper.

Background

The Millicent tissue mill has been a major employer in regional South Australia since it opened in 1960. For decades it operated under Kimberly-Clark Australia, but earlier this year was transferred to Arbex, a joint venture created by Suzano and Kimberly-Clark. The mill produces millions of toilet rolls annually for the Australian market. Workforce numbers have declined over time, from about 1,000 in the 1980s to around 400 currently. Regional centers across Australia have faced ongoing pressures from industry consolidation, automation and global competition.

Key Perspectives

Workers and the Union: The Timber, Furnishing and Textiles Union is pushing for stronger government support for local manufacturing and is in active consultation with Arbex management. District secretary Denise Campbell-Burns said the union would advocate strongly for workers, families and the broader Millicent community, though it has not specified how many jobs might be at risk. Arbex (New Owner): The company says Millicent remains a critical part of its Australian network but has announced a "proposed transformation program." Arbex has declined to discuss job impacts while consultation continues, leaving uncertainty about whether the transformation is primarily about efficiency, restructuring or reduced operations. Local Community: Wattle Range Mayor Des Noll described the mill as vital, noting that each job supports three others in the community and that some employees have worked there for 50 years.

What to Watch

  • Arbex's next announcement on the transformation program, which should clarify the scope of changes.
  • The outcome of consultation between the union and management, including any timeline for potential job cuts.
  • Any response from state or federal government on the union's call for greater manufacturing support.

Sources

Zotpaper

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