Timberlink Australia and New Forests have won a grant to expand its timber processing in Tarpeena, South Australia.
The $7.8 million grant is finance by the South East Forest Partnership program, a South Australian state government initiative designed to develop the region's timber and sawmilling industry.
The grant will be matched dollar-for-dollar by Timberlink itself, to upgrade the company's existing Tarpeena sawmill.
"The new investment is expected to increase sawlog processing volume from 460,000 to 575,000 cubic metres annually, improve productivity, and lower manufacturing costs," the company said in a statement.
Ian Tyson, Timberlink's CEO, added that “the Tarpeena sawmill has been a key part of the regional softwood timber industry for over 50 years".
“This investment program will assist to increase our international competitiveness, protect Australian jobs in manufacturing, and position us for a recovery in the Australian housing market."
The sawmill upgrade will see the facility improve timber recovery and energy efficiency and most likely increase the operation's sustainability through a reduction in manufacturing costs.
The grant and co-financing will increase capacity and implement a range of new technologies in the greenmill, drying kilns, and drymill, the company stated.