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After taking over Millicent Mill, Arbex announced a "transformation project" that has reignited fears of substantial job losses, prompting union and government calls for transparency and support for affected workers.
Arbex, the new owner of the 66‑year‑old Millicent tissue mill, has unveiled a plan it calls a "transformation project" that is sparking widespread concern among employees, the local community and industry watchdogs.
The project, announced after the company's takeover of the former Kimberly‑Clark Australia site, has not clarified the extent of workforce changes, and the company declined to provide any figures while stating it remains committed to its people and the town of Millicent. The move has put thousands of workers-currently about 400, down from a peak of around 1,000 in the 1980s-on edge as they worry that significant job cuts may follow.
Union Calls For Government Action
The timber, furnishings and textiles union representing Millicent workers is calling for government action. The union's district secretary, Denise Campbell‑Burns, has said the organisation is in discussions with management but is unwilling to speculate on the number of jobs that could disappear. Campbell‑Burns warned that the loss of production capacity would hurt the entire region, noting that toilet paper, tissues and other essential hygiene items are far from a luxury sector.
She highlighted how the COVID‑19 pandemic exposed the fragility of supply chains when domestic manufacturing shrank, urging policymakers to preserve the skills, equipment and capability to produce these everyday necessities in Australia. Local politicians are also demanding answers. Federal MP Tony Pasin, representing the Division of Barker, said he had been informed that there would be workforce reductions but that the information was vague.
He cited community reports that as many as a quarter of the workforce-potentially 100 jobs-could be at risk. Pasin called on senior management to provide transparency about the scale of the proposed cuts and the company's long‑term strategy for the mill. State MP Jason Virgo echoed these concerns. He has written to both state and federal governments urging the development of outplacement and worker transition programmes for those who might be made redundant.
MP Requests Investigation Into Dumping
Virgo also requested an investigation into the dumping of imported tissue products that he believes could undermine local manufacturing. The community's anxiety is compounded by the fact that the mill at Millicent has been a major employer since 1960. The town of roughly 4,700 residents relies heavily on the plant, which has historically produced millions of toilet rolls for the domestic market.
Wattle Range Mayor Des Noll, who has seen generations of townsfolk commence careers at the mill and later retire, said the plant's presence supports not just the workers but also local contractors and the broader economy. His statement underscored that for every employee, the mill supports at least three additional community members.
While Noll praised Samuel Kim‑Clark Australia's prior community engagement, he also acknowledged the uncertainty brought by the name change: "When the name changed, there were a few reactions of, 'Who is this? What does that mean?
'" Shari Noll, the mayor's wife and a former mill employee, recounted how listeners often wondered whether the new ownership would bring restructuring. Arbex, a joint venture between Brazilian pulp producer Suzano and Kimberly‑Clark, has been cautious about disclosing the details of the transformation. The company said it remains dedicated to maintaining jobs and supporting the local sphere, but it declined to provide a specific count of potential job losses.
Company Urges Patience Amid Uncertainty
It simultaneously urged patience, stating that decisions were still subject to ongoing consultation. In the face of political pressure, union advocacy, and community unease, the fate of the Millicent mill hangs in a balance. Stakeholders contend that any loss of footwear in local production would be felt beyond the immediate workforce-potentially derailing the town's economic sustainability.
The outcome will determine whether the region can retain the manufacturing capacity necessary for essential goods or if it will be forced to adjust to a future where essential product supply relies increasingly on imports. The situation also raises broader questions about Australia's policy toward domestic manufacturing. If local producers are seen as vulnerable to market fluctuations and global supply demands, the country risks losing the stewardship of essential manufacturing sectors.
Advocacy groups are urging clear government plans for outplacement, retraining, and support to ensure that communities dependent on long‑standing industries can adapt without devastating socioeconomic impacts. In summary, the Millicent transformation project is a catalyst for local debate over job security, government responsibility and the resilience of essential manufacturing. The outcome remains uncertain, but the stakes are high for businesses, workers, and the community as a whole.
Arbex Millicent Mill Job Cuts Union Government Support
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