Construction has begun on Australian Paper’s $90 million Latrobe Valley waste paper recycling plant that will triple the company’s usage of recycled fibre for recycled content paper.

Low Carbon Australia's Chief Executive Officer Meg McDonald congratulated Australian Paper on the milestone, adding that Low Carbon Australia had provided finance of $9.9 million towards the project.

“We’re very pleased to be part of this large Latrobe Valley project which will create jobs, improve productivity and further demonstrate Australian Paper’s commitment towards continued improvement to sustainable operations,” she said.

The plant is also receiving an Australian Government grant of $9.5 million and support from the Victorian Government.

Australian Paper’s CEO Jim Henneberry said the new plant was expected to divert up to 80,000 tonnes of waste paper from landfill each year and create 50,000 tonnes of premium recycled fibre.

“The new plant will enable us to grow our innovative range of Australian-made recycled office, printing, envelope and stationery papers. It will secure our position as the market leader in premium recycled paper and is a positive initiative for our environment, jobs and the community,” he said.

Ms McDonald said Low Carbon Australia was anticipating that the mill’s construction would further build on Australian Paper’s commitment towards reducing carbon emissions.

“Australian Paper, through Low Carbon Australia, has already certified a substantial range of its products as carbon neutral under the National Carbon Offset Standard and this investment consolidates its contribution towards a low carbon economy,” she said.