The owner of Australia’s largest hardwood processor has asked the Victorian Government to fund a $40 million refit of the mill. Source: Timberbiz
Australian Sustainable Hardwoods employs 250 people at Heyfield in Gippsland, but is threatening to close the mill due to a cut in native timber supply.
The company said it could access younger regrowth forest before moving entirely to plantation timber by 2043.
But Hermal Group chief executive Clinton Tilley said the transition required government help. He said the mill needed to retool to be able to handle smaller logs from lower value conservation forests.
“We put forward a plan that involves moving out of 1939 regrowth areas into lower conservation forest areas over the coming few years, and then moving out of that most probably by about year 25 into a state-based plantation system,” Mr Tilley said. “There’s a lot of work to be done in a short space of time.”
The mill has no timber supply locked in beyond June, with timber bought from the state-owned logging company VicForests.
Mr Tilley said he was hopeful the mill would remain operational.
“There’s a few sticking points but everyone is outcome-focused at the moment, and there’s a clear want and desire on all parties to ensure we get to a point where we can remain open,” he said.
“The difficulty is that there isn’t the volume of forest available in those other [plantation] species in Victoria at this time.
“With those trees not on the ground, it’s difficult for us to make toast when we don’t have bread.”
Mr Tilley said it was possible the mill could move to full plantation timber supply in 25 years.
“We have to find some middle ground. The resource we need in the long term isn’t there yet.”
Grass roots industry organisation Timber Communities Australia (TCA) has expressed its support of the Gippsland communities facing uncertainty about their jobs and future.
It has urged all negotiating parties, including the Victorian government, unions and commercial parties, to prioritise the community and ensure it has a strong, secure future.
“Australia’s Regional Forest Agreements and two voluntary, internationally recognised forest certification systems are based on a triple bottom-line of healthy landscapes, healthy economies and healthy communities. People and their security and livelihoods are integral to this,” said TCA National Coordinator Helen Murray.
“The debate we must move to is how we unite in Australia to produce more sustainably grown timber, not less. That’s where industry, community and government really need to focus.
“Global and local population growth means more timber is needed.
“Timber production is a perfect match for a 21st century greener economy.
“Forest products are carbon friendly. Every tree harvested in our native forests has to be regenerated. Skilled ecologists work in the industry. PlanetArk endorses that wood is good.
“Australians love hardwood timbers in their homes and offices.
“Plus, we’re a world leader in sustainable forest management and local timber communities are at the coalface.
“With these positives, we must ensure enough forest area is available to harvest and regenerate our own natural forest timbers. Otherwise Australia inevitably faces shipping in higher volumes from other countries.
“That isn’t acceptable. It means our own communities, like Gippsland, will continue to be hit. Imports can also lack the very strict environmental standards we insist on for our home grown timber.
“The starting point is our timber workers operate lawfully under very strict regulations. These are designed so forests are managed and harvested in a sustainable way. We have dedicated and well trained forest scientists. We have internationally recognised and certified forestry practices. Our skilled timber workers use top class technology in the field and in mills. All this paves the way for mills and manufacturers to turn out beautiful timber products which are needed and used by us all.
“We have everything it takes right here. Let’s be smart and get on with it,” she said.
