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Visy Industries
Company typePrivate
IndustryPackaging
FounderRichard Pratt
Headquarters
Melbourne
,
Australia
RevenueIncrease $3 billion (2020)[1]
Number of employees
11,000[2]

Visy Industries (known as Pratt Industries USA in the US) is a privately-owned Australian-American paper, packaging, and recycling company established in Melbourne in 1948. Visy was founded by Richard Pratt, who acted as the head of the company until his death in April 2009,[3] when his son, Anthony Pratt, assumed the role of executive chairman. Since his assumption of the role, Anthony Pratt has presided over a major expansion into the Asian packaging market and moved Visy to a position as a key player in food security for the region.

Visy operates more than 180 facilities worldwide,[citation needed] and employs more than 9,500 people in Australia and the United States, with total sales exceeding $5 billion.[citation needed]

History

Visy Industries began in 1948 with a 1000-pound loan from Richard Pratt's aunt, Ida Visbord, for whom the company is named. Originally, there were three partners – Visbord's husband Max Plotka, Richard Pratt's father Leon and engineer Les Feldman.[citation needed]

After Leon Pratt's death in 1969, his son Richard Pratt took over control and expanded the company. Throughout the 1970s, Visy established new plants in New South Wales and Queensland, and by the end of the decade was making more than 100,000 tons of boxes a year.[4] In the late 1970s and early 80s, Visy continued to grow, building 100% recycled paper mills, the first at Warwick Farm, Sydney. By 1990, Visy's national market share was over 40% with more than 2000 employees.[5]

Richard and Anthony Pratt then expanded to the U.S. to oversee the start-up and development of Pratt Industries USA.[when?]

In July 2020, Visy Industries purchased the Australian and New Zealand glass manufacturing operations of O-I Glass.[6]

2001–2003

In 2001, Visy undertook the-then largest development in its history, the construction of a $450 million Kraft paper mill in Tumut, New South Wales. This was the first Kraft mill built in the world in 20 years. It was the biggest investment in regional Australia since the Snowy Mountains Scheme (RP Speech), and was hailed by Australia's leading environmentalists for its commitment to sustainability.[7] It also has an advanced water usage system, with near-zero levels of effluent leaving the site. The Tumut mill is the most water efficient in the world – requiring just five tons of water to produce every ton of product, compared to the global average of 25 tons. It uses only forest thinnings and off-cuts for fiber.[8]

Ten years later, Visy built a second Kraft paper mill, bringing the total investment to Tumut to almost $1 billion. The mill was opened by NSW Premier Barry O’Farrell, and was also hailed by environmentalists. It was a winner of the Australian Business Awards for "Environmental Sustainability."[9]

Visy continued to grow by acquisition as well as green-fielding. In 2001, the company effectively doubled in size when it acquired Southcorp Packaging, by which stage Visy was operating at over 100 packaging and recycling sites in Australia, New Zealand and the U.S. Visy also expanded its product mix to include steel and aluminum cans, PET bottles, beverage cartons and plastic packaging. It also continued to be a world leader in recycling and during this period Visy opened Australia's largest materials recovery facility in Smithfield, New South Wales.[10]

Post 2009 leadership under Anthony Pratt

Anthony Pratt

In 2009, upon Anthony Pratt's ascendency to Executive Chairman, Visy appointed former ACCC chairman Professor Allan Fels to chair its Governance Committee.[11] Pratt also announced Jeff Bleich would join his company's advisory board. He appointed other advisory board members including Dryden Spring and Allan Moss.[12]

Following Richard Pratt's death in April 2009, Anthony Pratt returned to Australia to become Global Executive Chairman of Visy Industries, in addition to him continuing his long-time position as Chairman of Pratt Industries USA. Just two years after he assumed leadership of the company, Visy jumped from 43rd to 3rd in the AMR Corporate Citizenship Index, part of an annual survey of more than 60,000 Australians.[13]

Under Anthony Pratt's leadership the company expanded its Asian presence and participation. Earnings from its Asian operations had increased by $100 million a year by 2013.[14] Visy has also set up warehouse distribution centers outside Shanghai and Beijing, as well as a trading office in Shenzhen which is selling Visy paper into the Chinese market. Visy's growing focus on Asian markets received a major boost in 2013 when Anthony Pratt announced plans to double the company's earnings in the region by building new packaging plants in at least four South-East Asian countries. They will be modelled on the group's existing plastics plants in Thailand, Vietnam and Malaysia.[14] In September 2013, Pratt was elected an executive member of the Australia-Japan Business Cooperation Committee, a group dedicated for more than 50 years to strengthening ties between the two countries.[15] In October, Pratt's growing business interests in Asia prompted Australia's Prime Minister Tony Abbott to invite him on an official visit to Indonesia – the first overseas’ trip by the incoming leader.[16]

Pratt Industries runs the only paper mill in New York, which was founded in 1997. New York Mayor Michael Bloomberg designated 17 September 2013, as "Pratt Industries Day" in the New York, in tribute to the company's commitment to recycling and the environment after its mill had reached the milestone of recycling five millions tons of paper.[17]

As of 2012, Visy was the largest exporter of shipping containers from Australian ports, moving approximately 60,000 per year.[18]

Philanthropy

The Pratt Foundation was established by Richard and Jeanne Pratt in 1978 to support various charitable causes and initiatives throughout Australia. Since then, it has donated more than $250 million. In addition, Jeanne and Richard Pratt helped raise a further $250 million by opening their home, Raheen, to other charitable fundraisers.[clarification needed] The foundation is chaired by Anthony Pratt's sister, Heloise Waislitz. Its chief executive is Sam Lipski, a Melbourne-based journalist, and supports areas including medical research, education, the arts and relief of poverty.[19]

The Pratt family is also behind VisyCares, a non-profit begun in 1995 which promotes social responsibility at Visy through donations to establish community-based projects such as youth, immigrant and learning centres.[20]

Controversy

In December 2005 the Australian Competition and Consumer Commission (ACCC) commenced prosecution against Visy for alleged involvement in a cartel in the packaging industry. In 2007, Richard Pratt and the Visy group received a A$36 million fine for price fixing, representing the largest fine in Australian history at the time. Richard Pratt and several of his senior executives admitted to wrong-doing in the case. The Justice presiding, Peter Heeley, described them as "the worst cartel to come before the courts in 30-plus years".[21][22]

In 2016 the Australian Taxation Office revealed that in 2013–14, despite earning more than $2.5 billion in revenue, the holding company Pratt Consolidated Holdings had paid no tax. Further, that Thorney Investments, operated by Richard Pratt's son-in-law Alex Waislitz, which earned $430 million in revenue, had also paid no tax.[23]

Visy Industries has been linked to outlaw motorcycle group, the Hells Angels. Visy Industries employs a trucking company run by Stephen James Rogers, a convicted drug trafficker and founding chapter boss of the Hells Angels. Rogers was sentenced in 2007 to three years' prison for drug trafficking, and a senior Visy Industries manager gave character evidence for Rogers at his trial and stated the company would stand by him despite his conviction for trafficking amphetamines.[24] In 2012, Visy Industries was accused of using the Hells Angels to collect their debts. Police and industry sources state Visy founder Richard Pratt, who died in 2009, personally approved the deal with the Hells Angles after the state government removed the need for debt collectors to be licensed.[25] Visy Industries have called the accusations "nonsense".[26]

Sustainability

Pratt has organized the build of a $50 million, 100% recycled plastics plant in Sydney. This plant will enable Visy to make its PET and HDPE bottles out of 100% recycled plastic resin.[14]

Visy-Pratt Industries USA have continued to build clean energy plants which now include facilities in Tumut, Melbourne, Queensland and Atlanta. These provide coal-free energy and allow Visy to expand its recycling capabilities to beyond converting paper and plastics into 100% recycled products. It will also enable the company to convert almost all remaining garbage into clean energy, thus helping close down landfills.[27]

Awards

Visy won the 2004 Banksia Environmental Gold Award,[28] and was named Overall Show Winner the 2011 Australian Packaging Design Awards.[29]

In 2013, Visy and the Banksia Foundation – an Australian non-profit which promotes environmental excellence – teamed up to inaugurate the Richard Pratt-Banksia CEO Award. The award recognises an individual executive's contributions towards the economic, social and environmental sustainability achievements of the organization or company he/she leads. The award was named in honor of Pratt. The 2013 winner was Ravi Naidu, CEO of the Cooperative Research Centre for Contamination Assessment and Remediation of the Environment.[30]

See also

References

  1. ^ "Pratt Industries". Forbes.
  2. ^ "Pratt Industries". Forbes.
  3. ^ "Richard Pratt dies". Brisbane Times. 28 April 2009. Retrieved 17 May 2012.
  4. ^ "Visy Report 2011" (PDF).
  5. ^ "Visy – Our History". Visy.
  6. ^ Visy Acquires Glass Manufacturing Business Visy Industries 16 July 2020
  7. ^ "'Greenies' rare approval as Tumut pulp mill opens". Canberra Times. 23 November 2011. Archived from the original on 4 March 2016.
  8. ^ "Visy paper mill expansion gets go ahead". Australian Broadcasting Corporation. Retrieved 5 February 2007.
  9. ^ "Visy recognized with Australian Business Award for Environmental Sustainability". SustainabilityMatters.net.au. Sustainability Matters. Retrieved 8 March 2010.
  10. ^ "Dick Pratt's $3.5bn succession plan". Australian Financial Review. 9 September 2005.
  11. ^ "Pratt takes reins as CEO departs". The Australian Financial Review. 20 August 2009.
  12. ^ "US ambassador for Pratt advisory board". The Australian. 10 November 2013.
  13. ^ "JB Hi-Fi tops but crisis effect not over for DJs". The Australian Financial Review. 16 April 2011.
  14. ^ a b c "Visy bid to double Asia earnings Pratt unveils strategy for regional growth". The Australian. 3 November 2013.
  15. ^ AJBCC Members List (PDF), archived from the original (PDF) on 20 October 2014, retrieved 20 October 2013
  16. ^ Maher, Sid (2 October 2013), "Abbott's focus on international trade delights CEOs", The Australian
  17. ^ "Staten Island Mill Marks Its 5 Millionth Ton of Recycled Paper". SILive.com.
  18. ^ "Pratt sees future in food exports". The Australian Financial Review. 19 November 2012.
  19. ^ "Our heroes philanthropic". Herald Sun. 25 March 2013.
  20. ^ "Ali wins hearts with intimate combination". The Age. 9 December 2000.
  21. ^ "Visy fined $36 million for price fixing". SBS World News. 24 February 2015. Archived from the original on 29 May 2021.
  22. ^ "Amcor, Visy settle $500m cartel claim". The Australian Financial Review. 3 September 2011.
  23. ^ "98 private companies earning over $200m pay no tax: ATO". ABC News. 22 March 2016. Retrieved 4 April 2016.
  24. ^ McKenzie, Nick (6 July 2009). "Visy linked to Angels bikie boss". The Age. Retrieved 17 May 2012.
  25. ^ "Bikies for hire – Cops uncover Hells Angels link to corporate giant". Herald-Sun. 14 May 2012. Archived from the original on 21 November 2013. Retrieved 21 November 2013.
  26. ^ Moor, Keith (14 May 2012). "Cops uncover Hells Angels link to corporate giant Visy". Herald Sun. Archived from the original on 30 December 2012. Retrieved 17 May 2012.
  27. ^ "Visy flags $306 million clean-energy plan", Plastics News, 12 December 2011
  28. ^ "Package deal is a winner". The Australian. 22 October 2004.
  29. ^ "2011 Southern Cross Packaging Design Awards".
  30. ^ "Banksia Award for Cleanup Leader".
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