THE nation’s peak forest products lobby group and the timber workers’ union have welcomed the proposed investment to modernise Borg Manufacturing assets in Mount Gambier.
Considered one of the biggest investments in the regional industry’s history, the proposed expansion of Borg’s Lakeside site is expected to boost manufacturing and reduce raw material exports flowing across the Port of Portland.
Borg – which purchased White Avenue and Lakeside particleboard manufacturing sites from Carter Holt Harvey in 2018 – revealed plans this week to start a $50m-plus construction project at the Lakeside and Jubilee Highway West sites.
It is understood the overall investment could hit $100m given the construction cost does not include cutting edge machinery earmarked to be installed at the sprawling site.
With thousands of hectares of commercial forestry destroyed by fire in New South Wales and Victoria, timber workers union Green Triangle secretary Brad Coates said the Borg announcement was timely and would send a shot of confidence across the sector.
“The Borg announcement is very positive news among the bleak situation being experienced by other forestry regions in Australia affected by fire,” the Construction Forestry Maritime Mining and Energy Union official said.
“This is certainly a shining beacon in the industry. It will be the biggest investment in the region in the past 40 years.”
He said the announcement was also welcome given the downturn in the housing market and woodfibre exports, which was impacting on the harvest and haulage sector.
While the Borg development was “on the cards” for some time, he said it was great to see the company lodge development plans with Mount Gambier City Council.
He said the plans foreshadowed “doubling” the manufacturing output, which meant more raw product would be value-added in the region.
“This will reduce the industry’s reliance on the export market,” Mr Coates said.
In particular, he said the company was pouring its own money into the development and not underpinned by government grants.
Arguing more needed to be done to lift regional manufacturing, he said the Borg project was a great step forward.
The proposed development is expected to mirror the new Oberon Borg facility that opened last year.
“The Mount Gambier project will replicate that,” said Mr Coates, who explained the investment could reach $100m.
In particular, he was buoyed the White Avenue plant could be re-purposed to produce another timber product.
While the modernisation project might not create significantly more jobs, he said the project would secure current employment for potentially decades to come.
“The sustainability of the jobs there is the real kicker,” the union spokesperson said.
He said the redevelopment and expansion was needed given the ageing equipment at the White Avenue and Lakeside sites.
“It is a credit to the employees they can produce such a high quality product with the equipment on site,” Mr Coates said.
While the project still had some development approval hurdles to overcome, he said he wanted to see the project get off the ground as soon as possible.
“I hope there are no more road blocks given the project will also create around 100 construction jobs.”
With a downturn continuing in the domestic housing market, he said the looming infrastructure rebuild triggered by the nation’s unprecedented fire event could stimulate the sluggish domestic market.
He revealed the region’s harvest and haulage sector continued to take a hit with a slowdown in the number of export ships docked at Portland.
Mr Coates said thousands of hectares of forest had been destroyed in Victoria and New South Wales, which placed the industry in jeopardy in these areas.
Australian Forest Products Association South Australian branch manager Leon Rademeyer said the Borg announcement was a confidence booster for the regional forestry sector and community.
“It shows the forest industries are prepared to make long-term investments in the region, greatly enhancing its economic sustainability,” Mr Rademeyer said.
If approved, he said Borg’s particle plant expansion was among number of major investments by a forest industries company in the Mount Gambier region.
He said the others were the upgrades of OneFortyOne’s Jubilee Sawmill and Timberlink’s Tarpeena Mill.
“These investments do not only create and sustain jobs, but builds international confidence in the region and its people. It says ‘the South East is open for business,” Mr Rademeyer said.
