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Hermal Group to announce site of $190m mill

Will Hodgman

The site of a jobs-rich timber mill in the Burnie area is likely to be finalised soon. The Hermal Group aims to start construction of its $190 million plantation-based hardwood mill and manufacturing plant this year. Source: The Advocate

The project is expected to create about 220 ongoing jobs and to need about 160 construction workers.

It is believed the Melbourne-based Hermal Group is close to an agreement on a mill site. It has previously said the site would be in the Burnie area.

“We’d like to have the site settled very soon,” senior manager of special projects James Lantry said.

He said the company was looking to start construction this year, subject to regulatory and legal approvals.

The first stage of construction would be expected to take about 18 months.

The Hermal Group has invited parties interested in taking part in construction to register on a website. It is also taking registrations from people hoping to work at the mill.

The mill will solely use plantation wood. Much of its supply will come from Tasmania’s biggest private forest management company, Forico.

The Hermal Group is also keen to get supply from smaller private holdings of plantation eucalyptus nitens.

It expects the facility to process more than 300,000 cubic metres of plantation hardwood logs each year.

The company and Premier Will Hodgman announced the go-ahead for the project in late January. In January, chief executive Clinton Tilley said the facility would be world class and a leading centre of innovation.

“We will seek to employ local workers and support local businesses from here in Burnie and across the state of Tasmania for the construction of the facility,” he said.

The state government agreed to provide $13 million in grant and training support for the project. A loan of up to $30 million would also be available.

“We have a target to double the value of the forest, fine timber and wood fibre industry value add to $1.2 billion by 2036, and this development will make a major contribution to achieving this target,” Resources Minister Guy Barnett said.

Mr Hodgman said the project would be a game-changer for the North-West and North. It would be Australia’s biggest plantation-based hardwood mill, and the first ever hardwood cross-laminated production plant.