$100m Upgrades for Timberlink’s Australian Mills
Timberlink to Invest $100m in Regional Manufacturing Jobs and Australian Timber Supply
Timberlink is delighted to announce that it will be undertaking a $100 million upgrade program to its Australian sawmills. This generational investment will see the total processing capacity at Timberlink’s Australian sawmills increase by over 15% and will provide a vital increase in the Australian timber supply to help support the housing and construction sector.
“We are ensuring that all aspects of the business are internationally competitive to secure our long-term future,” said Timberlink CEO Ian Tyson.
Supporting our customers
We want to continue provide the level of reliability and quality that our customers expect and deserve. These investments will allow us to do this by increasing the overall amount of timber we can process whilst also increasing the consistency of our product through technological upgrades to key machinery.
Supporting regional communities for the long term
Pine trees take 30 years to mature, so when we plan at Timberlink, we truly plan for the long-term. We want to continue to support or regional communities and that is why we are so excited that this investment will secure these jobs for the next generation.
Of the 560 people that are directly employed by Timberlink, 87% of these are based in regional areas. We rely on them, and they rely on us, and not just for jobs, we’re a family, supporting community groups, sports clubs and local charities.
Jobs Jobs and more Jobs
The investment will see over 290 new jobs created in the construction phase. 200 at Tarpeena and 90 at our Bell Bay mill. 6 permanent, new full-time positions will also be created at our Bell Bay site as a result of the upgrades and our Tarpeena site has been expanding significantly over the past few years in anticipation of the upgrade.
Crucially the 560 people that directly rely on Timberlink and the further 800 that indirectly rely on us have their jobs secured for at least a generation by us remaining internationally competitive. That’s an incredible 1350 people putting food on the table, something we are very proud of.
What are we upgrading?
Tarpeena, South Australia
In Tarpeena, the investment will lead to the installation of a completely new saw line, a stacker and edger, all with the latest leading-edge technology, coupled with additional contraflow and batch kilns for drying timber. Major site infrastructure changes including upgrades to roads and storage facilities will also be undertaken.
Bell Bay, Northern Tasmania
At Timberlink’s Bell Bay site new planer mill equipment will be installed along with a state-of-the-art contraflow kiln. Site infrastructure will be improved, including a new internal road system designed to improve safety outcomes and support the increase in site activity.
How Long will it take?
The $100 million investment program will take place in stages over the next 3 years and will build on the $50 million of capex investments that have taken place in both mills over the past 5 years.
Timberlink will continue discussions with the Tasmanian, South Australian, and Federal Governments, seeking their funding support for further enhancements related to these business expansion programs.
How will this affect our customers in the short term?
The investment program will not affect our customers. Due to careful planning, the sawmills will be able to continue to operate normally during the building process. This will ensure that the supply of timber to our customers will continue as usual.
A word from the Chairman and CEO
Timberlink’s Chairman and CEO of investment management firm New Forests, David Brand, expressed his support for the mill upgrade program. “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.”
“This is a great day for Australian manufacturing,” said Timberlink CEO, Ian Tyson at the announcement. “We are ensuring that all aspects of the business are internationally competitive to secure our long-term future, and this significant investment will secure Timberlink’s position as one of Australasia’s leading softwood sawmillers.” “Our integrated business model allows us to optimise and guarantee our supply from the forest all the way to our customers door, and at its core, this program is about increasing and securing that supply of timber.” The new capital also enables the ongoing investment in training and upskilling of Timberlink’s employees. With 87% of their workforce living in regional areas, these investments build stronger local economies that can support our regional communities.
