Since 1960, a tissue mill in the small South Australian town of Millicent has been more than a workplace — it has been the economic heartbeat of a community of 4,700 people. Now, following a takeover by the joint venture Arbex, formed by Brazilian pulp giant Suzano and Kimberly-Clark, that heartbeat has grown uncertain. A vaguely named 'transformation project' has left up to 100 of the mill's 400 workers fearing for their livelihoods, while politicians and unions press for the transparency that silence has so far denied them. The story unfolding in Millicent is one that many regional communiti
Arbex 'transformation' threatens hundreds of jobs at SA's Millicent tissue mill
Up to 100 jobs (approximately 25% of the 400-person workforce) at risk of being cut, affecting workers and their families in a regional community of 4,700 people.
With change, does restructure follow?
Mark
Why does a tissue mill in a town of 4,700 people matter enough to be a national story?
Mimi
Because it's not just about the mill. For every person who works there, three others in the community depend on that job. It's a multiplier effect. One hundred job cuts doesn't mean 100 people lose income—it means the whole town feels it.
Luke
But we don't actually know it's 100. Pasin said "local reports and rumours suggest" that number. That's not confirmed.
Mimi
Right. Arbex won't say. The union won't speculate. So we're working with a rumor that a federal MP is treating seriously enough to demand answers about.
Mark
Why would Arbex stay silent if they're planning cuts?
Mimi
Probably because they're still in consultation with the union and workers. Once you announce numbers, you've started a negotiation. But the silence creates a vacuum that fills with fear.
Luke
The mill has already shrunk from 1,000 workers in the 1980s to 400 now. So the decline has been happening for a long time. This might just be the next chapter of a longer story.
Mimi
True. But there's a difference between gradual decline and a sudden restructure under new ownership. The community had adapted to Kimberly-Clark. They don't know Arbex yet.
Mark
What's the union actually asking for?
Mimi
Transparency about numbers, and then support—transition programs, retraining, outplacement help. They're also raising a bigger question: if Australia keeps losing manufacturing capacity, what does that mean for essential products?
Luke
That's a fair question, but it's also a political argument, not just a labor argument. The union has an interest in keeping the mill as it is.
Mimi
They do. But the point stands: if you can't make toilet paper domestically, you're dependent on imports. That's a real vulnerability.
Mark
So what happens now?
Mimi
Arbex finishes its consultation. Either they announce cuts and the community deals with it, or they find a way to restructure without massive layoffs. Either way, the politicians are watching and demanding answers.
El Pulso
- Up to 100 jobs — roughly a quarter of the mill's workforce — may be cut, but Arbex has refused to confirm any numbers while 'consultation' continues, leaving workers and the community suspended in anxious uncertainty.
- The ripple effect is stark: for every mill employee, three others in Millicent depend on that income, meaning a cut of 100 jobs could destabilise the economic foundations of an entire town.
- Politicians from both state and federal levels are demanding straight answers from Arbex management, with Federal Member Tony Pasin calling out the company's deliberately vague language about 'workforce reductions.'
- The union is at the negotiating table but refusing to speculate publicly, while MP Jason Virgo is pushing governments to prepare outplacement and worker transition programs before the cuts arrive.
- A deeper threat looms beneath the restructure: reports of imported tissue products being dumped on the Australian market suggest the mill may be caught between internal cost-cutting and unfair overseas competition.
- The community's anxiety is personal as well as economic — when the Kimberly-Clark name gave way to Arbex, locals simply asked each other: who are these people, and what do they want with our town?
Since 1960, a tissue mill in the small South Australian town of Millicent has been more than a workplace — it has been the economic heartbeat of a community of 4,700 people. Now, following a takeover by the joint venture Arbex, formed by Brazilian pulp giant Suzano and Kimberly-Clark, that heartbeat has grown uncertain. A vaguely named 'transformation project' has left up to 100 of the mill's 400 workers fearing for their livelihoods, while politicians and unions press for the transparency that silence has so far denied them. The story unfolding in Millicent is one that many regional communities know well — the slow reckoning between global capital and local belonging.
The Millicent tissue mill has anchored this small South Australian town since 1960 — the kind of employer where people began after school and stayed until retirement. This year, a joint venture between Brazilian pulp producer Suzano and Kimberly-Clark created a new company called Arbex and took over the operation. With the name change came a 'transformation project,' and with that project came fear.
Arbex has not said how many jobs will go, only that consultation is ongoing. But local reports suggest as many as 100 of the mill's 400 workers could be cut — about a quarter of the workforce. Federal Member for Barker Tony Pasin said the language he received about 'workforce reductions' was so vague it told him nothing. The Timber, Furnishing and Textiles Union confirmed it was in talks with management but would not speculate on numbers.
The stakes extend well beyond the mill's payroll. For every worker employed at the plant, three others in the community of 4,700 depend on that job through contractors, suppliers, and local spending. The mill once employed around 1,000 people in the 1980s; that figure has already fallen to 400. Another reduction of 100 would cut something essential from the town's fabric.
Union district secretary Denise Campbell-Burns vowed to advocate strongly for workers and their families, framing the issue in terms of national capability: toilet paper, tissues, and medical disposables are necessities, not luxuries, and eroding the manufacturing base means losing the skills to make them at home. Wattle Range Mayor Des Noll noted that Kimberly-Clark had been a good community partner and that things had seemed normal since the transition — but his wife Shari, who retired from the mill after 30 years, gave voice to the unease many feel when a familiar name disappears and an unknown one takes its place.
State MP Jason Virgo has written to both levels of government calling for worker transition programs and an investigation into reports of imported tissue products being dumped on the Australian market. Federal Member Pasin has demanded that Arbex management speak plainly about the scale and implications of the cuts. Arbex, for its part, has declined to comment while consultation continues — a silence that, measured against the community's anxiety, may itself be the loudest signal of all.
The Millicent tissue mill has been making toilet rolls for Australian homes since 1960, a steady presence in a regional South Australian town of 4,700 people. For decades it was the kind of employer that shaped entire lives—people started there after school and worked until retirement. But this year, when Brazilian pulp producer Suzano and Kimberly-Clark formed a joint venture called Arbex and took over the operation, the certainty that had defined the mill's place in the community began to crack.
Arbex announced a "transformation project" aimed at keeping the business sustainable. The company has not said how many jobs will disappear, only that consultation is ongoing. But the silence has filled with rumor. Federal Member for Barker Tony Pasin said he was advised of "workforce reductions" in language so vague it told him nothing. Local reports suggest as many as 100 positions could be cut—roughly a quarter of the mill's current workforce of 400. The Timber, Furnishing and Textiles Union confirmed it was in talks with management about the changes but declined to speculate on numbers.
The mill's footprint in Millicent extends far beyond its payroll. For every person employed at the plant, three others in the community depend on that job—through local contractors, suppliers, and the spending that comes with steady wages. In the 1980s, the mill employed around 1,000 people. That number has already contracted to 400. Another cut of 100 would hollow out something essential.
District secretary Denise Campbell-Burns of the union said she would advocate strongly for the workers, their families, and the broader community. She framed the stakes plainly: toilet paper, tissues, and medical disposables are not luxuries. They are necessities. If Australia continues to allow manufacturing capability to erode, the country loses the skills and infrastructure to make essential products at home. The question beneath the question is whether a regional community can absorb another shock to its economic foundation.
Wattle Range Mayor Des Noll said Kimberly-Clark had been proactive in the community and that it had been "business as usual" since the transition to Arbex. But his wife, Shari Noll, who retired from the mill five years ago after 30 years there, captured the anxiety that change has triggered. When the name changed from Kimberly-Clark to Arbex, people in town asked each other: Who is this? What does it mean? With change, does restructure follow? Those questions remain unanswered.
State MacKillop MP Jason Virgo has written to state and federal governments calling for outplacement and worker transition programs for anyone who loses their job. He also wants reports of imported tissue products being dumped on the Australian market investigated—a sign that the mill may be facing competition from overseas suppliers, not just internal restructuring. Federal Member Pasin has demanded that senior management come clean about the scale of job losses and what they mean for the mill's long-term future.
Arbex has declined to comment on the impact to jobs while consultation continues. The company's silence, measured against the union's concerns, the politicians' calls for transparency, and the community's anxiety, suggests that the transformation project will reshape Millicent whether or not anyone is ready for it. What happens next depends on whether the company will speak plainly about what it intends, and whether the government will move quickly enough to support workers and their families through the transition.
Citas Notables
Local reports and rumours suggest the number of jobs at risk could be as high as 100, around a quarter of the workforce. 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.— Tony Pasin, Federal Member for Barker
Products such as toilet paper, tissues, medical disposables and other personal hygiene products are not luxury items—they are critical everyday necessities. Australia cannot afford to continue allowing the erosion of the skills, infrastructure and production capability required to make essential products locally.— Denise Campbell-Burns, District Secretary, Timber, Furnishing and Textiles Union
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