Just this week the ABC reported that another sawmill in WA is about to close as it does not have a sufficient supply to continue to operate. Source: Timberbiz
When Redmond Sawmill closes, which is expected within a few months, it will be the fourth to do so since the ban on native logging was introduced and so another significant number of workers will be out of a job with few prospects on the horizon.
Brothers Glenn and Luke Gatti established the sawmill in Albany, WA in 1997, the family has a history in forestry and sawmilling with their father Fernando who began sawmilling in WA in 1956.
In October 2015 the business was sold to the current owner Corey Matters, the company specialises in hardwoods such as Jarrah, Marri and Wandoo sourced from sustainably managed forests under a contract with the Forest Products Commission of Western Australia.
The company processes logs for a range of timber products including floorboards.
According to the ABC, managing director Corey Matters said that he had not been able to secure enough logs to remain in business. The contract was for 8000 tonnes by December or around 660 tonnes a month. Mr Matters said that less than 660 tonnes were supplied during the warmer months leading to an undersupply problem. He was expecting a larger supply as a catch-up measure, but this did eventuate.
WA Forestry Minister Jackie Jarvis told the ABC that she was not sure why the company felt that they didn’t have enough timber saying they were “on target” to get 50% by June. She also said that the sawmill had already received more than 50% of its contracted karri and so she had told the Forest Products Commission to not deliver any more.
Mr Matters also told the ABC that his business was allocated around $1.4 million in compensation from the government but that is not enough, he has invested almost $12 million since 2015.