A new, $9 million wood mill and processing facility will be built near Manjimup after the state’s Forest Products Commission and Great Southern-based Australian Craftwood & Timber Pty Ltd signed a seven-year deal worth an estimated $22 million.
The contract is to provide sawn wood products to the local furniture industry, as well as supplying marri timber to national and international markets.
The government body will manage and supply the log products for the mill, which will initially supply 24,000 cubic metres of timber annually, gradually increasing to a maximum permitted capacity of 90,000 cubic metres in the third year of operation.
ACT group manager Roger Banks said the contract was in accordance with the value-adding principles of the state government’s Forest Management Plan.
“Part of the deal was to construct a purpose-built mill in Manjimup with an associated drying facility,” he said.
Mr Banks said the new facility aimed to address the current situation where demand for sawn marri material was exceeding supply.
“We made a commitment to the industry that we would pick up an additional 5,000 cubic metres per annum of sawn marri product, as well as add volume for the Australian market and overseas market,” he told WA Business News.
“We can negotiate if the industry demands more; obviously we’ll supply the local industry as a priority.”
ACT secured a grant from the state government to develop the facility at Manjimup, as well as a $1 million federal government grant.
The total investment by ACT, including the construction of a timber drying and processing facility, will be about $9 million.
FPC senior policy and projects officer Mike Buckton said the Manjimup mill would utilise previously discarded sawn marri products resulting from the processing of wood chip logs.
‘‘There were significant revenues available…which was attractive, as it had been a struggle for two or three years before that to sell the material to another party,’’ he told WA Business News.
“FPC…has been encouraging value-adding products in WA, and in this case, a product that had been wasted for six years. Part of it will go into a very valuable industry, which is furniture.’’
Mr Banks said the contract would generate a significant amount of revenue, as well as creating employment and infrastructure.
