Timberlink proposing $60m facility in SA’s south east, or Victoria
The state’s south east will compete with suburban Melbourne for a new $60 million timber manufacturing facility, which could bring 50 new jobs to the region.
SA Business
Don't miss out on the headlines from SA Business. Followed categories will be added to My News.
- Forestry companies invest $110m into South East
- How to get the most out of your Advertiser subscription
A major sawmill operator is considering a $60 million investment in the state’s south east, but financial support from the State Government may be needed to fend off competition from Victoria.
Timberlink, which operates the Tarpeena sawmill 25km north of Mount Gambier, has announced plans to develop a new manufacturing facility for producing prefabricated timber products for the construction industry.
The facility will become the first to manufacture both Cross Laminated Timber (CLT) and Glue Laminated Timber (GLT) products at one site, and will deliver 27 jobs when opened in 2023, rising to 50 once the facility reaches full output.
While the company is considering building the facility next to its Tarpeena sawmill, another option is for it to buy or rent premises near Melbourne - a major market for engineered timber products.
Timberlink chief executive Ian Tyson said the company would commence discussions with state and federal governments as part of its decision on where to locate the new facility.
“All governments want to support innovation in industry and here we have an example of a major investment in new technology,” he said.
“We want to have an open dialogue - ideally there’ll be some specific input given the significant cost and the long payback.
“That might be assisting us with a property, or tax benefits, things like payroll tax - it could be a number of things.
“Our heart would love it to be where our mill is but we're looking after other people’s money.”
Timberlink is investing $90 million into upgrades at its Tarpeena sawmill, which employs more than 200 people in the state’s south east, making it one of the region’s biggest employers.
While the State Government’s narrative has been to put less emphasis on “picking winners”, Mr Tyson argued his company already had a strong track record and was prepared to “stump up a lot of money”.
“I think we’re in a very different situation - we’re not asking them to pick a winner, we’re an established business that’s invested in the region over many years,” he said.
Engineered timber products like CLT and GLT are increasingly being used in Australia and overseas to construct residential, medium density and high rise timber buildings.
Benefits include lower costs, speedier construction times and improved environmental outcomes.
The Verde apartments at Kent Town is the only major project in South Australia to have been built using CLT.
“With around half of all CLT currently used in Australia being imported and strong growth in demand expected over the next decade, this investment in local production is great news for Australian manufacturing, the forestry sector and Timberlink,” Mr Tyson said.
“There’s an export opportunity for us for sure - in Asia and also New Zealand there’s definitely opportunities there, and we’ve already had enquiries out of Saudi Arabia and we haven’t even built a plant.”
Timberlink is owned by a number of local and international superannuation and pension funds.