Pinetec offered $2m

THE State Government has doubled its offer of assistance to pine pallet manufacturer Pinetec to help the company relocate from Bassendean to Collie.

The Government originally offered $1 million on the expectation Pinetec would obtain matching funding from the Federal Government.

However the Commonwealth has failed to provide its planned $15 million assistance to the timber industry after challenging the State’s decision on native forest logging volumes.

Therefore the State has increased its offer to Pinetec to $2 million.

Development Minister Clive Brown said the financial assistance would take the form of a fully secured interest free loan, convertible to a grant over five years upon the achievement of employment milestones.

Pinetec would also be required to maximise the project’s local content.

Mr Brown said the company expected to make a final investment decision by February 2004.