Origin has signed a new gas deal at a competitive price with long-term customer Kimberly-Clark Australia, which will help the company to continue operating its tissue manufacturing plant in Millicent, South Australia.
Origin and Kimberly-Clark, which owns the Kleenex®, Huggies®, U by Kotex® and VIVA® brands, have a long history and operate facilities in the same community in South Australia, with Origin’s Ladbroke Grove power plant just 50 kilometres from Kimberly-Clark’s Millicent plant.
Under the terms of the agreement, Origin has agreed to supply gas to Kimberly-Clark’s Millicent manufacturing plant until 2019.
Origin Executive General Manager Energy Supply and Operations, Greg Jarvis said, “Our agreement with Kimberly-Clark clearly demonstrates Origin’s commitment to supplying gas to domestic customers at a sustainable price.
“Origin has been supplying gas to Australian companies for decades so we fully appreciate the critical role it plays as both an energy source and feedstock for many manufacturing industries.
“Kimberly-Clark has been a customer for a long time, so through our negotiations over recent months we worked really openly with them to achieve a sustainable gas price that would ensure the future of the Millicent plant and keep people in jobs.
“This is a great example of industry working together with customers to find an appropriate solution.
“Origin will continue to work with our large industrial customers to make sure we can provide gas at sustainable prices, as well as to provide access to new technology like large scale solar which could help them reduce both their energy costs and emissions,” Mr Jarvis said.
Kimberly-Clark Millicent Mill Manager, Scott Whicker said, “We’re delighted that Origin has worked with us to mitigate a significant increase in gas costs.
“A reliable and competitively priced supply of natural gas is critical as energy is a major cost for our Millicent manufacturing plant, even as we continue to focus on improving energy efficiencies through innovative means, such as the installation of our state-of-the-art cogeneration facility in 2013.
“While we still need to work to off-set the increases to energy costs, the gas supply agreement Origin were able to offer us means that the Millicent plant is much better placed to continue as a significant regional employer,” M Whicker said.
Established in 1960, Kimberly-Clark’s Millicent facility manufactures Kleenex® and VIVA® tissue and towel products, along with products for the Kimberly-Clark Professional range, and is the only plant, out of the two that the company has in Australia, that produces tissue products.
The Millicent plant is a significant contributor to the Limestone Coast and South Australian economy, employing a workforce of over 400 directly associated with producing tissue products and contributing ~14% to the overall economic output of the region.
Origin has been supplying gas to Kimberly-Clark’s Millicent plant for more than 15 years.
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