Southwood veneer mill to shut following bushfire and pandemic

A pandemic and supply chain woes on top of bushfire damage has led Ta Ann to close its Southwood veneer mill 13 years after it opened near Geeveston, but Malaysian-based company is not done in Tasmania just yet.

Tasmanian eucalypt veneer shipment from Ta Ann rotary veneer mill in the Huon Valley, Ta Ann manager Doctor (Dr) How Sing Sii watches as the veneer is loaded on the ship M/V Matsumae at Macquarie Wharf

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Ta Ann Tasmania will close its Huon veneer mill and consolidate all its operations in Smithton.

The company said the disruption caused to its overseas supply chains by the pandemic, which came after a devastating bushfire last summer, had forced its hand.

There are currently only 10 workers on the Southwood site and the Smithton mill is earmarked to reopen in January.

Some of the southern workers have already found other jobs. The rest will be offered relocation to Smithton.

The closure will come as a huge blow to the forestry industry in Tasmania’s south and a shock to the Huon Valley community.

Huon Valley Mayor Bec Enders said the mill’s closure represented an “end of an era”.

“It has been an enormous battle for Ta Ann management, staff and shareholders,” Mayor Enders said.

“We regret that the economic climate post the 2019 bushfires has meant the closure of Ta Ann in the South of Tasmania. We know that they tried their best to remain viable in unprecedented times.”

Supplied photo of bushfire damage at the Ta Ann mill in the Huon Valley. Picture: SUPPLIED

The company spent $79m developing the two veneer mills – the Huon mill built in 2007 and the Smithton mill in 2008 – and says it will further invest in its Smithton mill if an adequate volume and longer-term wood supply can be finalised.

The company also opened a new plywood plant in Circular Head in 2015.

The Bob Brown Foundation said it is now time to move the multinational logger out of Tasmania’s forests and give taxpayers “back the $44 million that Lennon Labor gave it to set up here.”

“Without Ta Ann driving the logging of native forests, including critical Swift Parrot habitat, it’s time to move the industry out of native forests,” campaign manager Jenny Weber said.

“Instead, Ta Ann is saying ‘”give us the Tarkine forests on a plate or we will leave”’ It’s a disgusting ransom.”

“We expect this means an end to their wood supply agreement.”

Ta Ann says it is now working with Sustainable Timbers Tasmania to support options for ongoing wood manufacturing on the Southern Tasmanian site.

Ta Ann’s Southwood veneer mill. Tasmanian Bushfires 2019. Aerial images of wilderness and homes affected by the Riveaux Road bushfire. Picture: RICHARD JUPE

“Unfortunately due to a combination of circumstance largely outside of our control, Ta Ann Tasmania’s parent company has had to accept the hard commercial early that consolidating of all veneer and plywood operations at Smithton is required,” TAT general manager Robert Yong said.

“Those factors include the extensive bushfire damage to the mill, reduced log volumes and the impact of the COVID-19 crisis through the whole supply chain bother in Australia and overseas.

“We acknowledge closure of our Huon Mill will disappoint many in the region.”

TAT said it was working with Sustainable Timber Tasmania to support options for ongoing wood manufacturing on the Huon site.

“More details regarding the availability of the Huon site infrastructure and sustainable log supplies for businesses wishing to continue wood manufacturing on the Southwood site will be provided in the near future,” the company said.

Some equipment will be moved from the Huon to Smithton, however.