Heyfield timber mill to close, hundreds of jobs lost

HUNDREDS of Victorian timber jobs are likely to be handed to Tasmania after Premier Daniel Andrews’ last-ditch bid to buy the Heyfield mill backfired.

Heyfield Timber Mill workers protest earlier this week. Picture: Chloe Smith.

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HUNDREDS of Victorian timber jobs are likely to be handed to Tasmania after Premier Daniel Andrews’ last-ditch bid to buy the Heyfield mill backfired.

Australian Sustainable Hardwoods says it does not want to sell the mill to the State Government and will instead “recommence” talks with the Tasmanian Government to move its milling operations to that state.

ASH plans to close the mill in September 2018, and its 260 workers were yesterday told they would lose their jobs. Up to 7000 jobs are at risk because the company supplies timber to some of the biggest retailers in Victoria including Bunnings.

Australian Sustainable Hardwood employees were told they would lose their jobs. Picture: Andrew Batsch

Employees gather at a mass meeting announcing the closure of the Heyfield timber mill. Picture: Andrew Batsch

ASH will look at moving its componentry from the Heyfield mill to a new operation in Tasmania and is already in discussions with the Hodgman Government. It is understood the company would offer workers in Heyfield the opportunity to continue working in Tasmania, and also wants to continue supplying its Victorian clients.

Tasmanian Resources Minister Guy Barnett told the Herald Sun his government was in discussions with ASH’s owner, the Hermal Group.

“We would encourage any businesses wishing to flee a Labor government that is trying to shut down industry, to come to Tasmania where the Liberal government is encouraging growth and investment,” Mr Barnett said.

A sign in Heyfield. Picture: Andrew Batsch

Victorian government spokesman Chris Piper said the government was committed to keeping the Heyfield mill open and did not rule out purchasing the mill. But ASH director Clinton Tilley all but ruled that out, saying the mill required between $20 million and $30 million for retooling and would likely only retain 60 staff.

“We now believe that the Andrews government has been disingenuous in saying they would do whatever they could to save the jobs at Heyfield,” Mr Tilley said.

“The owners will also now explore options of relocating the manufacturing plant to Tasmania. Our staff are like our family and we feel for them at this time.”

Premier Daniel Andrews was noticeably absent during today’s announcement to distraught staff. Picture: Nicole Garmston

ASH rejected the state-owned VicForests’ offer of a three-year contract of one year’s timber supply at 80,000 cubic metres and two years at 60,000 cubic metres, as well as a $4.75 million support package from the government. ASH says it needs at least 130,000 cubic metres of saw logs a year to continue operations, which VicForests and environmental groups say is unsustainable.

Mr Andrews yesterday said the government’s offer was “fair and reasonable”. “We believe it is viable, even at those lower volumes,” Mr Andrews told ABC radio.

Opposition agriculture spokesman Peter Walsh said it was another “kick in the guts” for the Gippsland region along with the closure of the Hazelwood power plant.

Victorian Greens leader Greg Barber said the government needed to phase out wood chipping to save the leadbeater’s possum.

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