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$20m timber veneer plant

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A south-east South Australian mill will be transformed into a $20 million timber veneer plant by Sydney company Shield Formply, creating around 80 new jobs, Wattle Range Council has announced. Source: ABC News

Pending council approval of the planning application, construction will begin at the current Kalangadoo mill site in 2017.

Once complete, the plant will utilise locally grown blue-gum and pine to produce 100,000 cubic metres of veneer annually for export to make formply for the construction industry.

Shield Formply CEO Suzie Li said the mill’s location, right in the middle of south-east plantations, made it a convenient spot for the company’s newest operations.

“We identified the south-east as an opportunity to source a log supply grown in a sustainable manner allowing long-term investment in the region,” Ms Li said.

“Kalangadoo has an established saw mill for a long time [and] historically, it is a town famous for the timber industry.

“Also, the surrounding towns and Wattle Range Council are experienced in this industry and it will also help us recruit local labour in the area.”

Ms Li said around 80 workers would be needed to fill two shifts at the plant with recruitment expected to begin in early 2017.

Peter Badenoch, whose family took over the mill in 2013, said the plant would provide a boost to the local economy which would hopefully have a flow-on effect to the facilities already in the small south-east town.

“We’re excited and really keen to see where it all goes,” he said. “Obviously there will be support for businesses left in the town and hopefully in the future, the school, the community and local football club.

“It all just helps underpin them into the future.”

Ms Li said the plant would be a “clean” and energy-efficient operation.

“The facility will have the most updated technology and there will be no waste or air or water pollution,” she said. “We want to bring a good product to the local area, with no negative environmental impact.”

Wattle Range Mayor Peter Gandolfi said the new plant was an excellent capital investment opportunity for the region.

In April this year, Mr Gandolfi toured the company’s manufacturing facility in China and since then, there have been multiple visits by Shield Formply representatives to the region, he said.

“Kalangadoo has had a long history with the timber industry and the working relationship between the owners of the mill, the Badenoch family and Shield Formply has been outstanding,” he said.