First locally-made egg cartons in production

Western Australia's first locally-made egg cartons are now coming off the production line at the start of a new industry nurtured by the State Government.

Deputy Premier and State Development Minister Ian Taylor said the cartons are made from local waste paper and would save the WA Egg Marketing Board millions of dollars.

A new production plant at Palmyra was manufacturing the first of 16 million cartons annually.

Mr Taylor said the factory was directly employing 12 people and would generate other jobs through the collection of waste paper.

"The whole idea for this venture came from the State Government," he said.

"It is a marvellous concept - environmentally useful, replaces imports, saves money and creates employment."

Mr Taylor's Department of State Development, convinced of the technology and availability of waste paper, persuaded the egg authorities to enter into a five-year contract to buy their cartons locally.

"Currently WA buys all its cartons interstate.  Local production will be $350,000 a year cheaper," he said.

"The next task was to interest parties in manufacturing the cartons here.  The successful tenderer was a joint venture between the giant Chinese Government corporation, CITIC, and a local partner, Paper and Pulp International Pty Ltd.

"The operating company, Paper Products Pty Ltd, is now running the $3 million factory using the latest suction moulding equipment from the United Kingdom and other specialised plant from the USA."

Mr Taylor said the business was looking at producing other products such as food, fruit and medical trays made from waste paper.  This process would be able to utilise telephone directories which otherwise had no substantial recycling potential.

"The State Government helped the company win $340,000 of Commonwealth research and development funding to perfect new seedling pots," he said.

"Work is underway with Curtin University to produce a pot which contains in-built nutrients.

"This new line will replace millions of seedling pots now imported from Scandinavia."

The Minister said carton manufacturing from waste paper was one of a number of Government strategies to increase recycling and value-adding to waste materials.