Hyne Timber is looking for government support for an initiative which will see saw logs destined for export, processed at its Tumbarumba Mill. Following discussions with suppliers in Victoria and South Australia, Hyne Timber has confirmation that at least 431,000m3 of sustainably grown, plantation pine can be made available to the mill over the next three years. Source: Timberbiz
The company says the initiative would protect hundreds of jobs locally and along the timber supply chain, helping the Australian economy recover from bushfires and the COVID-19 pandemic.
Hyne Timber CEO Jon Kleinschmidt said the company had already applied for a NSW grant and was now in discussions with the Federal Government to secure transport support to fast track these new supply channels.
“Those logs are situated beyond the Tumbarumba viable supply zone, and to do this we need transport support for the extra 41 per cent of freight costs,” Mr Kleinschmidt said.
“We believe redirecting logs from export and into the Australian economy while retaining job security for hundreds of people, is a compelling case for State and Federal Government support.
“If we can secure just under $29 million in support over three years on top of our own contribution of over $42 million, we can convert that into an estimated $173 million for the Australian economy.”
“The jobs secured at the Tumbarumba Mill, and our sales and distribution staff in NSW alone equates to over $70 million in wages and salaries going back into the economy and vibrancy of our regional towns.
“We have crunched the numbers and without support, this additional 431,000m3 of logs are too expensive to freight to Tumbarumba, as the additional costs cannot be passed onto our customers, who will be forced to use imported timber.
“The devastating bushfires have impacted 40 per cent of our long-term log supply. The situation is serious, and the community is rightfully concerned about the future. However, we have found a significant win-win solution if we can secure Government support.
“Those logs will supply quality, sustainably grown Australian timber for 10,000 new homes.
“The by-products will also support the economy with an estimated 104,526 tonnes of chip supplied to Visy in Tumut for paper and packaging production and up to 24,457 more tonnes of bark for commercial applications including potting mix to grow the nations fresh food.” Mr Kleinschmidt said.
Dried wood shavings customer, David Shandley has further warned of disruption to the food supply chain as a result of the bushfires and the impact on by-product availability.
“Shandleys Transport buy 100 per cent of Hyne’s dried wood shavings, used as animal bedding for commercial food producers and supplying the major supermarkets nation-wide,” Mr Shandey said.
“The 431,000m3 additional log volume means 14,109 more tonnes of dried wood shavings, supporting jobs in Holbrook and beyond. We hope the Government will work with Hyne to protect our supply chains and secure the flow of Australian logs, timber and by-product to benefit our own economy and regional communities.” Mr Shandey concluded.
Hyne Timber has applied through the NSW Government Bushfire Industry Recovery Package – Sector Development Grants for support and is now in discussion with the Australian Federal Government.
