Five timber companies in the south-east of Australia are getting state grants totalling more than $8.6 million. Source: ABC News
South Australia’s Manufacturing Minister Tom Kenyon said the money was part of the South East Forestry Partnerships Program.
“[It will] help secure the forestry industry’s future by encouraging further investment in new and existing businesses,” he said.
Kenyon said the grants were a benefit of the forward sale of forest rotations, which had been a contentious issue in the south-east.
“If we hadn’t sold the forests I think we probably wouldn’t have had the cash to put in,” he said.
“I know it’s been a big issue down here, it’s caused a bit of angst, but one of the side benefits of freeing up the cash for the Government is we’ve been able to then help the industry revitalise.
“I mean no one wants to see the industry disappear, we all want it to continue to be a vital part of the state’s economy that is has been for a very long time and that means moving up the value chain, taking the next step, getting more efficient and that’s what this money is for.
“The successful applicants will be required to enter into a funding agreement with the State Government and demonstrate that they have entered into contractual relations with OneFortyOne Plantations.”
The grants, over two years, must be matched. Forestry grants in detail
Recipients:
• NF McDonnell and Sons ($4,270,831) to produce a more efficient and modern processing facility.
• Whitehead Timber Sales Pty Ltd ($1,970,500) to replace existing sawlog machinery with current technology and processes.
• Carter Holt Harvey Pinepanels Pty Ltd ($1,160,000) to purchases a shavings machine to turn sawlog into shavings which will be used to manufacture particleboard.
• H & L Scheidl Pty Ltd ($1,052,500) to upgrade the company’s Marte Siding site.
• Roundwood Solutions Pty Ltd ($237,000) for the second stage of the company’s long preservation optimiser line and significantly increasing its air drying storage area.
