PREMIER Lara Giddings has welcomed yesterday's news that Norske Skog would consolidate its Southern Hemisphere operations in Tasmania. Some $84 million will be invested in the Boyer Mill with the assistance of the State and Federal Governments. Ms Giddings said this was a sign of confidence in Tasmania.
"This is fantastic news for Tasmania and the people of New Norfolk who rely on the operation for jobs and economic activity," Ms Giddings said. "Norske Skog is an important part of the Tasmanian economy and this investment will ensure that it remains so for many years to come."
Ms Giddings said the Tasmanian Government would provide a $13 million loan while the Federal Government was currently undertaking due diligence on grants of $28 million.
Norske Skog will also make a significant capital contribution to convert its current newsprint operations to coated paper grades suitable for catalogues.
"Not only will this project secure Boyer's current 330 direct and 900 indirect jobs, it will create a further 100 jobs in the construction phase. The decision to consolidate operations in Tasmania is testament to Norske Skog's Tasmanian workforce and the efficiency of the Boyer plant," Ms Giddings said.
"It is also a clear sign of confidence in the future of the Tasmanian economy and our forest industry, which is a major supplier to the Boyer Mill."