A MAJOR regional timber processing company says it plans to build a new $60m new world-class timber processing facility, but its location will hinge on financial assistance flowing from state and federal governments.
While Timberlink Australia says it wants to build the engineered timber manufacturing facility at Tarpeena, it has not ruled out constructing the plant in Melbourne.
Timberlink Australia – which is already pouring $90m into redeveloping its established Tarpeena processing facility – plans to produce state-of-the-art cross laminated timber and glue laminated timber products.
The plans will see the company tap into burgeoning global building laminated market, which is described as a new age building material for residential medium density and high-rise timber buildings.
Timberlink will begin discussions with both state and federal governments to secure a location for the facility, which is expected to employ nearly 30 full-time permanent jobs when the facility opens in 2023.
This number is expected to climb to 50 when the facility reaches its full output.
Timberlink chief executive officer Ian Tyson told The Border Watch yesterday the planned facility would add value to the regional resource, forge fresh markets and produce innovative products.
While the company wanted to build the facility adjacent its Tarpeena mill to underpin regional growth, he said it was a massive investment and it needed to explore its options.
“We hope to make a decision in March,” Mr Tyson said.
He revealed the facility would be the size of a Bunnings store and would underpin hundreds of indirect jobs across the sector.
Mr Tyson said the company would now ramp up discussions with governments given it now had a “viable business case”.
“I am confident that now is the right time for the company to build on its strong foundations with this move into engineered timber, the building material of the 21st century and the ultimate renewable,” Mr Tyson said.
He said the Tarpeena site would be ideal for the company given its proximity to its existing processing facility and the fact it was located in Australia’s premier wood fibre region.
“In the last seven years the company has heavily invested into its three softwood processing mills and expanded our market position.”
The significant investment will see the construction of Australia’s second major softwood cross laminated timber (CLT) plant and first combined CLT and glue laminated timber (GLT) manufacturing facility.
He revealed the Timberlink Board had approved plans to capitalise on the growing market segment.
“CLT and GLT products are used as the structural elements for building residential housing, medium density and high-rise timber buildings,” the company chief said.
“With around half of all CLT currently used in Australia being imported and strong growth in demand expected over the next decade, this investment in local production is great news for Australian manufacturing, the forestry sector and Timberlink.”
Mr Tyson said this would place Timberlink at the “forefront” of integrated forestry and softwood processing in Australia.
“Timberlink with its integrated forestry, production and market position is very well suited to play a significant part in this growing and dynamic market.”
He said engineered timber products were increasingly being used in Australia and globally, particularly in mid-rise buildings due to a combination of factors, including cost-effectiveness, liveability, ease and efficiency of construction.
“This is especially important as population growth is driving greater urbanisation, with society creating a rise in demand for building with energy efficient, sustainable and carbon positive materials,” Mr Tyson said.
He described timber as the ultimate renewable offering the environmental benefits of a sustainable, carbon positive building material.
A significant number of additional jobs will also be created during the construction phase.
The Border Watch contacted SA Primary Industries and Regional Development Minister Tim Whetstone for comment.
