Expansion plans for Tasmanian sawmill

DESPITE THE financial crisis and falling building activity, a Forest Enterprises Australia is on track to expand its new Bell Bay sawmill in Tasmania.
Chief executive Andrew White said some minor softening of price was being observed, but that FEA was receiving some benefit in the market by industry rationalisation and dynamics which, to date, mitigated these aspects.
He said that interest rate reductions and first home buyer incentives should help economic recovery and meet the underlying demand for new homes.
“There is continued demand for pulp, paper and processed timber products,” he said. “Notably, unlike other forestry investment managers, the FEA Group is also well positioned to directly benefit from our ability to add value to growers’ timber.”
The $72 million Bell Bay mill, commissioned in February, is processing 350,000 tonnes of plantation hardwood and softwood.