PaperlinX announced last Thursday it was looking for investors to take either a share of Australian Paper, or all of it in a bid to increase profits.

The announcement follows the release of PaperlinX's earnings for the financial year, which revealed its after tax profit was down 10 per cent on the figures of last financial year.

A cost blowout of $82 million on the overdue pulp mill upgrade at Maryvale and rising input costs have been listed among the factors contributing to the company's decline in profits.

In a statement, PaperlinX said it was looking for investors who were ``interested and capable of persuing the value of Australian Paper's strategic advantages over the long term to create more value than we are able to''.

But no decisions about whether the sale will definitely go ahead have been made, according to PaperlinX executive general manager corporate affairs, David Shirer.

It is understood the company will only sell off all or parts of Australian Paper if a potential buyer can invest more money into it than PaperlinX can.

``We're looking at a process to investigate the value of the Australian Paper business and the advantages Australian Paper has and whether other people will value it more highly than we do,'' Mr Shirer said.

``We're constrained in our ability to invest in the business but other people might have (the ability to invest more money).

``There has been no decision made to sell, in many ways the communication made...is to make sure it's transparent to our employees.''

Australian Paper's Maryvale Mill (APM) is one of the largest employers in the Latrobe Valley, with more than 1000 staff.

But Mr Shirer said APM employees should not be concerned about their jobs.

He said the process was being undertaken to determine the value of Australian Paper.

``There are people currently undertaking investment reviews of the business, out of that they will come up with the view of the value of the business then we can examine that,'' Mr Shirer said. Nationals MLA for Morwell, Russell Northe said the APM was an asset to the community.

``We need to continue to support them as best we can,'' he said.

``As a local MP, I think all forms of government should support what is a vital industry.''

Mr Northe said he would continue to meet with Australian Paper to discuss the impact a sale would have.

``Like other businesses, they do exchange hands and at least we have seen PaperlinX come out and say that by selling it, it could improve in the future,'' he said.

Nationals MHR for Gippsland Darren Chester said he had met with PaperlinX representatives two weeks ago and informed them of his support for the company.

``I was aware they hadn't had the best financial performance in recent times but I only learned of the intention to sell when everyone else did,'' he said.

``At the time I made it clear that I am supportive of it remaining in the Latrobe Valley because it is a vital part of our economy.''

Mr Chester said there were ``opportunities for the Federal Government to consider buying contracts to support local manufacturers as much as possible''.

Australian Manufacturing Workers Union official and Gippsland Trades and Labour Council acting secretary, Steve Dodd did not respond to a request for comment from The Express.