ForestrySA has awarded three new contracts to local South Austrailan sawmills, achieving growth and supporting local jobs in regional communities.
Sawmills in the Adelaide Hills, the South-east and Mid North will benefit from the outcomes of ForestrySA’s recent tender for long term supply of timber from state forests in the Mount Lofty Ranges.
The successful tenderers are:
- KSI Sawmills, Nurioopta – industrial log and sawlog supply for 10 years
- Timberlink, Tarpeena – sawlog supply for 10 years
- Morgan Sawmill Jamestown – preservation log supply for 1 year
“In a strongly competitive national and global market for timber, it is exciting to see local sawmills successfully secure supply contracts with ForestrySA,” minister for Primary Industries and Regional Development David Basham said.
“We know how important local sawmills are to our regional economies and these supply contracts will help support South Australian businesses and local jobs.
“Demand for timber has increased with the local housing industry booming, which is great news for the South Australian economy, but has put real pressure on supply chains,” he said.
“A recent tender process for log supply from ForestrySA has resulted in new long-term supply agreements, helping to secure the future of the domestic processing industry.”
The volume of local logs being processed in regional South Australia will increase significantly as a result, according to ForestrySA chief executive Julian Speed.
“Whilst market demand plays a role in allocation of ForestrySA’s logs, we are particularly pleased to be able to award increased volumes to the domestic wood processing sector,” Speed said.
“ForestrySA has developed some strong and very rewarding customer relationships which are now proving beneficial for the long term.”
KSI Sawmills will build a new $4.5 million sawmill, made possible because of its 10-year supply agreement with ForestrySA.
“New arrangements will allow for all log of sawmill quality to be provided to the processing industry for increased value-adding, predominantly in South Australia,” Basham said.
“No logs of sawmill quality will be exported as a result of this tender, in a strong sign of ForestrySA’s support for the local industry.
“ForestrySA’s direct contribution to the economy in regional South Australia has increased by more than 50 per cent as a result of this successful tender.”