PACKAGING giant Amcor has appointed Leighton to build its new Botany Bay paper mill, clearing the way for the sale of the Alphington Mill in the inner north eastern suburbs.

Plans to sell the 16.5ha mill to developer Lang Walker broke down early last year, partly because Amcor’s timeline for the New South Wales project was uncertain.

Yesterday’s news that Leighton Contractors had won a $110 million contract to design and build the new paper mill will give potential buyers of the $150 million-plus site some comfort.

A new marketing campaign for the Yarra River site, handled by Colliers International agents John Marasco and Peter Evans, is due to start next week.

Mr Marasco said yesterday he had already been “inundated” by parties interested in the mill.

“People have come back in the new year looking for opportunities.

“There’s a number of Australian listed developers and some off-shore groups as well,” Mr Marasco said.

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“I think we will get it away this time. The market conditions are more favourable and Victoria is very much on the radar for a lot of groups because of its positive migration.”

The site was rezoned in 2009, during an earlier sales process, to allow for a mixed-use development.

Mr Walker had planned a $1 billion project with up to 2000 dwellings.

However, the question of who should pay for the cost of cleaning the site also led to the collapse in negotiations.

After nearly 100 years as an industrial site, the mill requires an expensive clean-up.

Just 7km from the city, it is due to close next year.