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Millions in new research to boost Victoria’s timber innovation

5 November 2025

The Victorian Forest Products Association (VFPA) has welcomed this week’s announcement by the Australian Government and Australian Forest and Wood Innovations (AFWI) of millions of dollars in new research investments that will help accelerate innovation across Victoria’s plantation, wood-fibre and engineered wood manufacturing sectors — supporting jobs, housing supply and greater sovereign manufacturing capability.

VFPA Chief Executive Officer Andrew White said the announcement recognises Victoria’s leadership in plantation forestry and its pivotal role in delivering more homes built with sustainable, locally made timber. “Victoria is the home of plantation forestry — and this new wave of AFWI investment will help unlock the next generation of engineered wood products, advanced manufacturing and potential for biofuels development,” Mr White said.

“These projects will deliver long-term benefits for housing, jobs and regional innovation right across the state.”

Some of the newly announced AFWI-funded projects that will benefit Victoria include:

  • Advanced Manufacturing Precinct Strategy: an advanced manufacturing feasibility initiative bringing together industry, research and government partners to develop new engineered wood products, prefabricated dwellings and bio-based co-products at scale. The project aims to grow domestic manufacturing capacity and displace imported engineered wood products, ensuring Victoria is less dependent on imports and retains more value-adding locally.
  • Giant Pine Scale (GPS) research: biosecurity research which aims to provide sustainable management options for exotic pest giant pine scale (GPS), including new biocontrol options being developed in Victoria (a Greek fly). Currently confined to urban Melbourne and Adelaide, GPS threatens the productivity of Australia’s vital softwood industry that goes into housing supply, as other than tree removal, there are currently no effective control options.
  • Fibre to Fuels: Linking Australia’s Sustainable Forestry and Renewable Energy Sectors. The Fibre to Fuels project is designed to link Australia’s sustainable forestry sector with the fast growing renewable energy market. It focuses on how industry can most effectively turn forestry residues into low-carbon liquid fuels and other high-value products. This approach could help make better use of underused wood fibre residues, creating new income opportunities for forestry businesses, and supports the shift toward cleaner energy sources.

Mr White said these projects show how Victoria’s forestry and wood manufacturing sectors are driving solutions that directly address Australia’s housing and supply chain challenges, whilst protecting vital timber plantations from biosecurity threats.

“Timber is essential to tackling Australia’s housing shortage,” Mr White said.

“By developing new approaches for advanced engineered wood products and prefabrication, these AFWI projects will help make more sustainable, locally produced timber available for home construction — reducing our reliance on imports and keeping jobs, skills and investment in Victoria.”

Mr White said the funding highlights the power of collaboration between industry, researchers and government.

“These projects show what’s possible when science, industry expertise and innovation come together — from tackling emerging biosecurity threats to creating the next generation of prefabricated and engineered timber housing,” he said. “AFWI’s investment will help transform research into real-world solutions — strengthening regional communities, supporting local manufacturing and ensuring more Australians can build homes with Victorian timber.”

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Source: Victorian Forest Products Association (VFPA)
Image credit: Australian Forest and Wood Innovations (AFWI)

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