One of the biggest sawmills plans massive upgrades in Australia. And it is Timberlink. Timberlink has approved a AUD 100 million (71,8 million USD) upgrade program to its Australian sawmills. This investment will see the total processing capacity of the Australasian sawmilling company increase by over 15%.
According to the announcement, the investment will secure over 1,350 direct and indirect jobs in regional Australia for years to come. While it is also supporting the residential housing sector with increased timber supply.
In South Australia, the investment will lead to the installation of a completely new saw line. And the new line includes stacker and edger, all with the latest leading-edge technology, coupled with additional contraflow and batch kilns for drying timber. Besides, it will also be undertaking major site infrastructure changes including upgrades to roads and storage facilities.
At Timberlink’s Bell Bay site in Tasmania, it will install the new planer mill equipment along with a state-of-the-art contraflow kiln. At the same time, it also improving site infrastructure, including a new internal road system. And this system is designed to improve safety outcomes and support the increase in site activity.
The AUD 100 million investment program will take place in stages over the next 3 years. And it will build on previous capital expenditures investments that have taken place in both mills over the past 5 years.
David Brand, Timberlink’s Chairman and CEO of investment management firm New Forests, commented:
“This is a substantial re-investment in the Timberlink mill facilities and continues to demonstrate the strong recovery of the Australian forestry sector under institutional investor ownership. Timberlink has become a leading wood products business, and I expect it will continue to innovate and grow, creating new manufacturing jobs in regional areas, while increasing the supply of timber in Australia.”
While, it anticipates that it is a total of 290 additional jobs during the construction phase of the AUD 100 million programs.
Timberlink will continue discussions with the Tasmanian, South Australian, and Federal Governments. And it is seeking their funding support for further enhancements related to these business expansion programs.
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