Australian family owned Hyne Timber is looking for government support for an initiative that will see saw logs destined for export, processed at its Tumbarumba Mill, protecting hundreds of jobs locally and along the timber supply chain, helping the Australian economy recover from bushfires and the COVID-19 pandemic.
Following discussions with suppliers in Victoria and South Australia, Hyne Timber has confirmation that at least 431,000m3 of sustainably grown, plantation pine can be made available to the Mill over the next three years.
The CEO of Hyne Timber, Jon Kleinschmidt said they have already applied for an NSW grant and are now in discussions with the Federal Government to secure transport support to fast track these new supply channels. “Those logs are situated beyond the Tumbarumba viable supply zone, and to do this we need transport support for the extra 41 per cent of freight costs,” Mr Kleinschmidt said.
“We believe redirecting logs from export and into the Australian economy while retaining job security for hundreds of people is a compelling case for State and Federal Government support.
“If we can secure just under AU$29 million in support over three years on top of our own contribution of over AU$42 million, we can convert that into an estimated AU$173 million for the Australian economy. The jobs secured at the Tumbarumba Mill, and our sales and distribution staff in NSW alone equates to over $70 million in wages and salaries going back into the economy and vibrancy of our regional towns”.
“We have crunched the numbers and without support, this additional 431,000m3 of logs are too expensive to freight to Tumbarumba, as the additional costs cannot be passed onto our customers, who will be forced to use imported timber.
“The devastating bushfires have impacted 40 per cent of our long-term log supply. The situation is serious, and the community is rightfully concerned about the future. However, we have found a significant win-win solution if we can secure Government support.
Hyne Timber has applied through the NSW Government Bushfire Industry Recovery Package – Sector Development Grants for support and is now in discussion with the Australian Federal Government.
Click here for a virtual tour of the Tumbarumba Mill.
Source: Hyne Timber