Timberlink has approved a AUD 100 million (71,8 million USD) upgrade program to its Australian sawmills. This investment will see the total processing capacity of the Australasian sawmilling company increase by over 15%.
According to the announcement, the investment will secure over 1,350 direct and indirect jobs in regional Australia for years to come while supporting the residential housing sector with increased timber supply.
In Tarpeena, South Australia, the investment will lead to the installation of a completely new saw line, stacker and edger, all with the latest leading-edge technology, coupled with additional contraflow and batch kilns for drying timber. Major site infrastructure changes including upgrades to roads and storage facilities will also be undertaken.
At Timberlink’s Bell Bay site in Tasmania, new planer mill equipment will be installed along with a state-of-the-art contraflow kiln. Site infrastructure will be improved, including a new internal road system designed to improve safety outcomes and support the increase in site activity.
The AUD 100 million investment program will take place in stages over the next 3 years and will build on
previous capex investments that have taken place in both mills over the past 5 years.
David Brand, Timberlink’s Chairman and CEO of investment management firm New Forests, commented:
“This is a substantial re-investment in the Timberlink mill facilities and continues to demonstrate the strong recovery of the Australian forestry sector under institutional investor ownership. Timberlink has become a leading wood products business, and I expect it will continue to innovate and grow, creating new manufacturing jobs in regional areas, while increasing the supply of timber in Australia.”
A total of 290 additional jobs are anticipated during the construction phase of the AUD 100 million program.
Timberlink will continue discussions with the Tasmanian, South Australian, and Federal Governments, seeking their funding support for further enhancements related to these business expansion programs.
The company is a leading Australasian timber products manufacturing business. The business has three sawmills at Bell Bay (Tasmania), Blenheim (New Zealand) and Tarpeena (South Australia) that manufacture plantation structural pine products. The business is owned by investment funds managed by New Forests, a sustainable real assets investment manager headquartered in Sydney.