Australia's last white paper manufacturer will permanently close after months of speculation about the company's future.

Documents seen by the ABC show Opal Australia, based in Maryvale in Victoria's Latrobe Valley, will withdraw from the graphic paper business.

While the documents don't show how many jobs will be lost, unions believe about 200 people may become unemployed.

Representatives from the Construction, Forestry, Mining and Energy Union, the Electrical Trades Union and the Australian Manufacturing Workers’ Union will meet with Opal Australia on Wednesday morning.

Union sources said it was hoped the redundancy process could be expedited to two to three months.

It is understood the unions have concerns about temporary employees which they want addressed by Opal before moving into the redundancy phase.

The sources said the long game the company had played over the last four months had negatively affected workers.

Lack of timber supply blamed

Opal Australia blamed a lack of timber supply for the failing viability of its Maryvale Mill, after the company was unable to secure an alternative source of hardwood when a court order halted VicForests operations across the state last year.

In November 2022, Victoria's Supreme Court handed down judgements against the state-owned VicForests, finding the logging agency had failed to protect endangered gliders in Gippsland and Central Victoria.

Some 120 workers were stood down from Opal Australia's white paper production line between December last year and January of this year, with the last ream of white paper coming off its M5 copy paper machine last month.

The mill also produces brown paper, in the form of kraft liner board for containers.

At this point, brown paper production is not affected.

The mill previously produced up to 200,000 tonnes of white paper per year, with 300 reams of paper created a minute.

Opal Australia declined to comment.