David Marriner buys Norske Skog’s Boyer Mill and outlines “new chapter” for workers

The future for one of Tasmania’s biggest employers has been under a cloud. Now it has a new buyer who is looking to the future.

DVG Pics. File Pics. Norske Skog paper mill at Boyer from the Derwent River. PIC: MATT THOMPSON

Prominent developer David Marriner has bought Norske Skog’s Boyer Mill for $27m and says it will be a “new chapter” for the plant and its more than 300 employees.

The future of the 84-year-old mill, which is the last remaining producer of publication-grade newsprint in Australasia, has been under a cloud after Norwegian based Norske Skog closed its sites in Albury NSW and New Zealand.

The sale has been a closely guarded secret with workers briefed confidentially on Friday ahead of the announcement made in Oslo and made public in Australia on Friday night.

It follows lengthy negotiations between Mr Marriner and Norske Skog who bought the mill in 2000.

Developer David Marriner talks to stakeholders at the launch of Derwent Seventy 10. Picture: Linda Higginson

Mr Marriner told the Mercury he acknowledged paper demand in Australia was declining.

“However, with a significant land holding, a skilled workforce and current energy, water and fibre supply contracts, we see multiple initiatives that will secure the ongoing future for the site,” he said.

“Having already invested over $50m, with a further $30m to be committed, into a sustainable and social housing initiative in Bridgewater, this acquisition will enhance this initiative through providing additional resources to facilitate the realisation of Australia’s first fully-automated factory produced sustainable housing product at scale.

“I expect it will be business as usual at Boyer and we see significant potential to expand and diversify the industrial activities for the benefit of its employees and the local community.

“In dialogue with mill management and representatives of the Boyer workforce we have been very impressed with their knowledge and commitment to the business.

“We are therefore excited to start a new chapter for the mill.”

The Norske Skog paper mill at Boyer near New Norfolk.

The Boyer Mill began operations producing Australia’s first newsprint in 1941. It employs 310 people, contributes to 1000 indirect jobs and injects $180m each year into the Tasmanian economy.

Mr Marriner, a former Melbourne theatre developer, owns the factory that has produced the concrete for the Bridgewater Bridge and last year briefed MPs, local government and the business sector about a third option for a sports stadium at Glenorchy.

Geir Drangsland, CEO of Norske Skog, said he was pleased to “conclude our orderly exit from Australasia with the divestment of the Boyer mill”.

“The discussions with David Marriner and Boyer Capital have been ongoing for some time and we believe they represent the ideal owner to both continue the production of publication paper and develop the industrial site for future activities,” he said.

“The Boyer mill has been part of the Norske Skog group for 25 years and we wish to thank everyone for their support and contribution to the mill during this time.”

Patrick Dooley, the managing director of Norske Skog Boyer said: “We now look forward to continue our operations under new ownership, and to work closely with our new owners to explore future opportunities at the mill site.”

The Boyer Mill has a production capacity of 150,000 tonnes of newsprint and 135,000 tonnes of LWC magazine paper. The he site has a total area of 565ha which Norske Skog said had significant opportunities for future developments, and good access to raw materials and logistics infrastructure.