Heyfield Timber Mill to close in August after rejecting Andrews Government $20m

A HEYFIELD timber mill is set to close early after rejecting the Andrews Government’s $20m life line. Now up to 50 workers will be laid off in August.

Heyfield Timber Mill workers protesting outside a cabinet meeting. Picture: Chloe Smith.

SCORES of timber workers are bracing for job losses in Heyfield next week as Australia’s biggest timber mill flags it will begin closing earlier than expected.

The shock announcement comes after the company rejected a “pitiful” $20 million cash offer from the Victorian Government last month.

It is understood Australian Sustainable Hardwoods rejected the cash offer worth $20 million, which was accompanied with a $20 million debt takeover agreement, concluding they would be better off retaining its high-value equipment and moving part of its operations to Tasmania.

A lack of timber supply from VicForests has aggravated the situation, bringing the closure of the mill forward to August — a month sooner than its September deadline.

Premier of Victoria Daniel Andrews promised to save jobs and buy mill as a last resort. Picture: Rob Blakers

On Monday, up to 50 workers will be told of redundancies, starting in August, which is expected to be a big blow for the community.

ASH chairman Ron Goldschlager slammed the government over its handling of the situation.

“Mr Andrews’ actions to falsely build up the hopes of the staff over the last four months is a disgraceful, selfish act and he should hold his head down in shame,’’ he said.

“I am appalled at the insensitive ways that Daniel Andrews has treated our staff and good people in Heyfield.

“My heart is with my staff and has been so throughout this whole fight.”

Heyfield Timber Mill workers protesting outside a cabinet meeting. Picture: Chloe Smith.

It is understood the offer made by the Department of Treasury and Regional Development Victoria two weeks ago included $21 million and would also take on operating creditors, rumoured to come with about $20 million of debt.

Under the government’s community ownership offer, a consortium including some of the mill’s current management would take over the mill.

The final closure date is September next year.

[e-mail]