Kimberly-Clark Australia, the single largest employer in the State’s South East, is investing a further $20 million in its Millicent Mill to upgrade equipment and increase production of its Kleenex products.

It follows a $33 million investment earlier this year in a new energy-saving cogeneration plant, which has taken the Millicent Mill off the electricity grid and greatly reduced the company’s carbon emissions.

Speaking at an event to celebrate the company’s achievements, Treasurer Tom Koutsantonis also announced a new licensing agreement between Kimberly-Clark Australia and the Environmental Protection Agency (EPA), which will build on waste water improvements and sustainability initiatives already achieved by the leading South Australian manufacturer.

“While we acknowledge the challenges facing the sector, we commend Kimberly-Clark Australia for facing them head on and leading the way as a sustainable and competitive manufacturer in South Australia,” Mr Koutsantonis said.

“Kimberly-Clark Australia’s $20 million investment adds to more than $370 million it has invested in the South East over the past decade.

“Kimberly-Clark Australia is not only making an investment, but a statement about its commitment to manufacturing, this region and the 900 people directly or indirectly employed by the Mill.”

Kimberly-Clark Australia injects about $130 million into the State’s economy each year.

Mr Koutsantonis said for the past 50 years, the company has operated under an indenture agreement which provided regulatory certainty for the Mill’s operators.

The indenture allowed Kimberly-Clark Australia to discharge wastewater, outside of normal environmental regulations, into drains that flow into Lake Bonney in the South East, one of the State’s largest freshwater lakes.

The EPA and the company had been working together for several years to ensure a smooth transition to full licensing, ahead of the expiry of the indenture.

Mr Koutsantonis said Kimberly-Clark Australia has made significant investments to reduce and improve wastewater, along with its carbon footprint.

“The company says its Mill’s waste water discharges have gone from 35 megalitres a day in 2010 to about 10 megalitres a day currently and now meets Australian Drinking Water Guidelines,” he said.

“This new licensing agreement will mean further improvements to water quality in Lake Bonney, which was re-opened for recreation last year for the first time since 1983.

“The Mill has also more than halved its energy and carbon footprint over the past five years, while the new $33 million cogeneration plant will reduce carbon emissions by 80,000 tonnes per annum.”

Investment and Trade Minister Martin Hamilton-Smith, who also attended today’s event, said: “I commend Kimberly-Clark Australia on its new investment into South Australian manufacturing and ongoing commitment to sustainable practice.”