Job cut fears at one of Australia's largest toilet roll manufacturers

The Arbex mill, near Millicent, is one of the largest Australian producers of tissue products. (Supplied: Kimberly-Clark)

Dozens of jobs could be lost at one of Australia's largest paper mills.

New owner Arbex is proposing what it is calling a "transformation project" at the 66-year-old Millicent mill.

The multinational company would not comment on potential job losses but said it remained committed to its employees and the local community.

The national timber union wants governments to do more to strengthen local manufacturing amid concerns of job cuts at one of the country's largest tissue plants.

The Millicent tissue mill has been operating in the regional South Australian town since 1960, employing hundreds and making millions of toilet rolls for the Australian market each year.

The uncertainty for the local site, formerly owned by Kimberly-Clark Australia, followed a recent takeover by international hygiene company Arbex.

Joint venture Arbex's signage went up earlier this year. (ABC South East SA: Josh Brine)

While the Timber, Furnishing and Textiles Union declined to speculate on how many jobs could be axed, it confirmed it was in discussion with management about the "reported changes and their implications for workers".

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.

In a statement, Arbex said it was in talks about a "proposed transformation program" at the site.

Arbex declined to comment on the impact on jobs given consultation was ongoing.

The Arbex mill's planned "transformation" has workers and the wider community fearing job cuts. (ABC South East SA: Bec Whetham)

Over the six decades it has been operating, thousands of locals have worked at the Millicent mill.

In the 1980s about 1,000 people worked at the plant, though that has declined to about 400 employees currently.

The site was previously owned and operated by Kimberly-Clark Australia (KCA), but earlier this year it was taken over by Arbex — a joint venture between Brazilian pulp producer Suzano and Kimberly-Clark.

The mill first opened in 1960. (Supplied: Kimberly Clark)

"Employees within our community and the region have held careers here from when they left school to when they've retired," Wattle Range Mayor Des Noll 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."

Des Noll says the mill is vital to the local economy. (ABC South East SA: Josh Brine)

Mr Noll said KCA had been proactive in the community, and it had been "business as usual" since the move to Arbex.

He said he hoped to discuss any changes at the mill with management as the process continued.

The mayor's wife, Shari Noll, retired from the mill five years ago after a 30-year career. She said the name change had caused some confusion in the community.

"When the name changed, there were a few reactions of, 'Who is this? What does that mean?'" she said.

"It always plays in your mind that with change, does that mean there's going to be a restructure of some sort?"

The mill produces products such as toilet paper and tissues. (ABC South East SA: Grace Whiteside)

The region's federal and state politicians have called for clear answers on how many jobs will be cut as part of the changes.

Federal member for Barker Tony Pasin said he had been advised of "workforce reductions", but the advice was "vague and non-committal".

"Local reports and rumours suggest the number of jobs at risk could be as high as 100, around a quarter of the workforce," he said.

"If that figure is anywhere near accurate, senior management needs to come clean with the local community about the scale of these proposed job losses and what they mean for the long-term future of the mill.

State MacKillop MP Jason Virgo said he had written to the state and federal governments calling for outplacement and worker transition programs for affected workers.

Jason Virgo says affected workers will need support. (ABC South East SA: Aiden McNamara)

He said he also wanted reports of dumping of imported tissue products to be investigated.

"We cannot stand by and watch good local jobs disappear without a coordinated plan to support workers and protect the future of the community," he said.

Ms Campbell-Burns said reported job losses created questions about the long-term viability of manufacturing jobs.

"Products such as toilet paper, tissues, medical disposables and other personal hygiene products are not luxury items — they are critical everyday necessities," she said.

"The COVID period demonstrated how vulnerable supply chains can become when a nation loses domestic manufacturing capacity.

"Australia cannot afford to continue allowing the erosion of the skills, infrastructure and production capability required to make essential products locally."