South Australian manufacturing minister Tom Kenyon said the region’s timber sector did not have to be “Superman” to transform itself into a higher profit driven sector. Sources: The Border Watch
This follows the release of stage one of a $1m wood fibre study that calls on the regional industry to transform itself and “leap frog” out of a low commodity sector.
The groundbreaking regional study that recently attracted another $580,000 in state and federal government funding is being undertaken by leading consultants from a leading Finnish research centre.
These consultants have global connections to international wood fibre players and investors who could consider pouring investment into the region.
Following Kimberly-Clark Australia’s closure of the region’s only pulp mill, the researchers also called for bioenergy, biochemical or biomaterial generation to fuel a new use for the under-utilised chip and sawdust sector.
Kenyon, who flew into Mount Gambier for the briefing, warned the study’s findings were “confronting”.
“I am a firm believer the forestry industry has a future – not to just struggle along,” said Kenyon, adding 35% of employment in the region was underpinned by the forestry sector.
Explaining other countries with bustling forestry sectors were not “Superman”, he said the region could also mirror this success.
He said stage two of the study, which would received $330,000 from the State Government and $250,000 from the Federal Government, would be released in June.
“My view is that we don’t have a lot of time to waste – we need to get cracking,” Kenyon said.
While the State Government had already poured $830,000 into the study and would provide $27m to revitalise the sector, he said the timber industry needed to lead new innovation.
“The government can’t tell you how to run your mills – you wouldn’t want us running them,” the minister told the meeting, which attracted representatives from across the timber sector.
“The Cellulose Fibre Chain Study – part of the State Government’s Manufacturing Works strategy – involves working with local industry to identify short, medium and longer term sustainable and achievable market opportunities.”
He said the study was an important project for South Australia’s economy as developing higher-value forestry products was the key to creating a sustainable future.
“That’s why we went out and actively sought the involvement of the VTT Technical Research Centre in Finland,” Kenyon said.
“They’re world-leaders in translating cellulose fibre opportunity research into tangible business opportunities with global connections to major international cellulose fibre players and investors.”
Kenyon said the VTT’s stage one included analysis of the value chains associated with the South East forestry sector and the landscape for future opportunities based on interviews with more than 20 industry groups.
Meanwhile, Federal Minister for Industry and Innovation Greg Combet said he was pleased to support the study, which could prepare the region to compete internationally in the forestry industry by producing niche, high-value products of its own.
“This project presents a great opportunity to develop an innovative, renewable feedstock for industry in South Australia,” Combet said. “We’ve seen examples of the benefits of an innovative cellulose fibre value-chain in Northern Europe, so I look forward to supporting South Australian companies interested in working towards that.”
