Visy Industries
Encyclopedia
Visy Industries was established in Melbourne
, Australia
in 1948 and is headquartered at Level 11, 2 Southbank Boulevard,Melbourne, Australia. It has grown to become one of the world’s largest privately-owned paper
recycling
and packaging companies. In 2003, Visy employed more than 8000 people. Total manufacturing revenues exceeded $2.5 billion and total manufacturing assets exceed $3 billion. Visy was owned by Richard Pratt
until his death on the 28th of April, 2009. Pratt, as of 2008, was Australia's Fourth Richest Man with a personal fortune of $5.28 billion. Before his death, Pratt put into action the succession of ownership of Visy to his son, Anthony Pratt.
The company is named after the wife of one of the original partners, Max Plotka. Her name was Ida Visbord, and she lent them a thousand pounds to go into business. (The company's original name was Visyboard, not Visy Board.)
The company capitalised on the demand for cardboard boxes among the orchardists in Shepparton, Victoria
where the Pratt family was living. Along with Richard Pratt's father Leon, the third partner was an engineer, Les Feldman. The Pratt and Plotka families moved to Melbourne
and bought their first factory in the suburb of Fitzroy.
Richard Pratt
took over the business in 1969 on the death of his father.
By the late 1970s Visy was making more than 100,000 tonnes of boxes a year. In 1979 the company built its first paper recycling
machine at Warwick Farm. Following this it expanded significantly, both through acquisition and greenfield
sites.
By 1990, Visy’s share of the national market had grown to more than 40% and it had more than 2000 employees. In the next decade Visy continued to expand, including entering the USA with a paper recycling operation in New York
.
Considered the largest development in Visy's remarkable history was the construction of Visy's $400 million kraft paper mill in Tumut, New South Wales, Australia. Visy also developed and owns the world's largest Materials Recovery Facility (MRF) situated in Smithfeild NSW. This development is considered the largest and most technically advanced recycling facility in Australia.
In December 2005 the Australian Competition and Consumer Commission
commenced prosecution against Visy for alleged involvement in a cartel
in the packaging industry.
In March 2006 there was further controversy when it was revealed former Premier of New South Wales
Bob Carr
had accepted a consultancy to advise Visy on recycling.
On 2 November 2007 Pratt and the Visy group received a A$36 million fine for price fixing, representing both the largest fine in Australian history.
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
in 1948 and is headquartered at Level 11, 2 Southbank Boulevard,Melbourne, Australia. It has grown to become one of the world’s largest privately-owned paper
Paper
Paper is a thin material mainly used for writing upon, printing upon, drawing or for packaging. It is produced by pressing together moist fibers, typically cellulose pulp derived from wood, rags or grasses, and drying them into flexible sheets....
recycling
Recycling
Recycling is processing used materials into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution and water pollution by reducing the need for "conventional" waste disposal, and lower greenhouse...
and packaging companies. In 2003, Visy employed more than 8000 people. Total manufacturing revenues exceeded $2.5 billion and total manufacturing assets exceed $3 billion. Visy was owned by Richard Pratt
Richard Pratt (Australian businessman)
Richard J. Pratt was a prominent Australian businessman, chairman of the privately-owned company Visy Industries, and a leading figure of Melbourne society. In the year before his death Pratt was Australia's fourth-richest person, with a personal fortune valued at billion...
until his death on the 28th of April, 2009. Pratt, as of 2008, was Australia's Fourth Richest Man with a personal fortune of $5.28 billion. Before his death, Pratt put into action the succession of ownership of Visy to his son, Anthony Pratt.
The company is named after the wife of one of the original partners, Max Plotka. Her name was Ida Visbord, and she lent them a thousand pounds to go into business. (The company's original name was Visyboard, not Visy Board.)
The company capitalised on the demand for cardboard boxes among the orchardists in Shepparton, Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
where the Pratt family was living. Along with Richard Pratt's father Leon, the third partner was an engineer, Les Feldman. The Pratt and Plotka families moved to Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
and bought their first factory in the suburb of Fitzroy.
Richard Pratt
Richard Pratt (Australian businessman)
Richard J. Pratt was a prominent Australian businessman, chairman of the privately-owned company Visy Industries, and a leading figure of Melbourne society. In the year before his death Pratt was Australia's fourth-richest person, with a personal fortune valued at billion...
took over the business in 1969 on the death of his father.
By the late 1970s Visy was making more than 100,000 tonnes of boxes a year. In 1979 the company built its first paper recycling
Paper recycling
Paper recycling is the process of recovering waste paper and remaking it into new paper products. There are three categories of paper that can be used as feedstocks for making recycled paper: mill broke, pre-consumer waste, and post-consumer waste. Mill broke is paper trimmings and other paper...
machine at Warwick Farm. Following this it expanded significantly, both through acquisition and greenfield
Greenfield land
Greenfield land is a term used to describe undeveloped land in a city or rural area either used for agriculture, landscape design, or left to naturally evolve...
sites.
By 1990, Visy’s share of the national market had grown to more than 40% and it had more than 2000 employees. In the next decade Visy continued to expand, including entering the USA with a paper recycling operation in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Considered the largest development in Visy's remarkable history was the construction of Visy's $400 million kraft paper mill in Tumut, New South Wales, Australia. Visy also developed and owns the world's largest Materials Recovery Facility (MRF) situated in Smithfeild NSW. This development is considered the largest and most technically advanced recycling facility in Australia.
In December 2005 the Australian Competition and Consumer Commission
Australian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...
commenced prosecution against Visy for alleged involvement in a cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
in the packaging industry.
In March 2006 there was further controversy when it was revealed former Premier of New South Wales
Premiers of New South Wales
The Premier of New South Wales is the head of government in the state of New South Wales, Australia. The Government of New South Wales follows the Westminster system, with a Parliament of New South Wales acting as the legislature...
Bob Carr
Bob Carr
Robert John "Bob" Carr , Australian statesman, was Premier of New South Wales from 4 April 1995 to 3 August 2005. He holds the record for the longest continuous service as premier of NSW...
had accepted a consultancy to advise Visy on recycling.
On 2 November 2007 Pratt and the Visy group received a A$36 million fine for price fixing, representing both the largest fine in Australian history.