Kimberly-Clark Australia (KCA) said on Tuesday that its ongoing global business review forces it to put two ageing tissue machines at the Millicent mill out of commission by May this year.

That move when realised, according to South Australia Liberals, would cost the state some 170 permanent employment, apart from the estimated 1500 people directly and indirectly benefitting from the operations of Kimberly-Clark.

SA Liberal MP Mitch Williams said on Wednesday that once the two tissue machines stop their operations, economic hardship would surely hit the southeast region of the state as he stressed that local-wise, "closing the mill will devastate our community."

To make the matter worse, Williams said that the lifting of the anti-dumping charges last year has been taking its toll on Australia's timber and paper industry and over the next 12 months, Kimberly-Clark needs to sell the pulp mill or run the risk of closing it altogether.

That would mean the loss of another 65 jobs, according to the Liberal MP.

Prior to its removal in January 2010, the anti-dumping charges served as Australia's protection from excess import tissues and toilet papers entering the market, most of which were originating from China and Indonesia.

The timber and paper industry of South Australia has been calling on the state government to work on the reversal of the policy but the Liberals said that efforts were hardly seen from SA Premier Mike Rann.

Williams lamented that the premier "has failed to act on this issue and seems busy focussing on the forward sale of the state's forests rather than protecting jobs in the region."

However, Mr Rann said that while the imposition of the new policy brought with it negative effects on South Australia's economy, his hands were tied on dealing with issue.

Also, the Premier said that both the state and federal governments could not prevail upon on Kimberly-Clark to change its decision since the strategic review emanated from the firm's parent company based in the US.

Mr Rann stressed that the government is not in the business of meddling with corporate policy of global restructuring, which is being implemented to ensure future viability, yet he revealed that at this time, the SA government has teamed up with federal authorities for the establishment of a $17 million Innovation Investment Fund to help the state's struggling region.