Parkside to close landmark mill as logging ban looms

The state’s largest timber manufacturer will close its 70-year-old Greenbushes mill and stand down 50 employees after investing $54 million as the state’s native logging ban looms.

Business News understands the Queensland-based company told its workers this morning the green and dry mill at Greenbushes would close on May 13, but its Nannup and Manjimup facilities would continue to operate.

The mill, commonly known as Whittakers’ Mill, was built in the 1950s and was purchased by Parkside from Auswest Timbers in 2019.

The company purchased the Nannup facility shortly after.

The purchases marked the largest native forest industry private investment consolidation and restructure in 15 years and was expected to secure hundreds of direct and indirect jobs, an investment once welcomed by the McGowan government.

The announcement marks the first of a cascade of expected closures in the wake of the state government’s plan to ban native forest logging by 2024.

Since then, the state government has promised $427 million in funding to support the transition, the vast majority of which will be spent expanding softwood plantations over the next decade to provide confidence to the pine industry.

The remaining funds have been allocated to support employees, businesses and communities affected by the ban and support those leaving the industry to upskill.

Forest Industries Federation of WA chief executive Adele Farina said the news was a blow to industry and the wider South West community, saying it was not the outcome Parkside’s owners and board had hoped for.

She pinned the blame directly on the state government, arguing that workers and communities would not be facing the grim situation if it had stood by its promise it would be “business as usual”.

“Our thoughts are with the Parkside management and their employees during this difficult time, and I know the owners and board of Parkside are extremely disappointed with having to make this decision,” she said.

“Government has been standing on the hose of timber supply and deliberately holding back access to higher yielding coupes, resulting in a significant reduction in log supply to Parkside and other businesses.

“Despite the Premier’s assurances that it would be ‘business as usual’ for industry until that time, the reality has been quite the opposite.”

When the state government’s plan was first announced, Parkside director Robert Tapiolas said the business was shocked by the announcement, with the business having been encouraged by the Premier, Minister and local governments to develop the business into a world-class milling centre.

FIFWA, which has been lobbying against the ban and calling for greater support since it was announced, called on the state government to open the online portal to compensate workers.