Hyne Timber Welcomes Bushfire Recovery Grant

Hyne Timber has welcomed the announcement of almost $3 million NSW Government support for its Tumbarumba Mill bushfire recovery.

The funding covers 50% of the Tumbarumba Mill Optimisation Project cost, which will assist in reducing operating costs, gain efficiencies and most importantly, help retain 149 people in jobs in Tumbarumba.

Hyne Timber CEO, Jon Kleinschmidt said optimisation is critical to saw the highest possible quality timber from every log processed.

“The bushfires have impacted 40 per cent of our log feedstock so it is critical we optimise the Mill to improve efficiencies, keep people in jobs and keep up the supply of quality, renewable plantation pine for the building sector,” Mr Kleinschmidt said.

“Without NSW Government support we wouldn’t be able to co-invest in a number of upgrades and innovative solutions.

 “As part of the optimisation program of works, we will be recruiting a dedicated Program Manager and as always, we are committed to engaging local trades such as electrical and plumbing services, ensuring maximum flow on benefits to our bushfire impacted community.

“It is great to be able to deliver some positive news to our team members, our customers and the community. Hyne is committed to the Tumbarumba community, the surrounding region and the long-term viability of the Mill.”

The Tumbarumba Mill Optimisation Project is funded by the NSW Government Bushfire Industry Recovery Package Stream Two.

Hyne Timber continues to seek avenues for further government support for freight or other cost offsetting to assist with getting logs to the Mill from outside the viable freight zone. These logs are currently being exported with no further value add to the Australian economy.

According to an independent economic report by REMPLAN, redirecting 441,500m3 of plantation pine to Tumbarumba over the next three years will see a further 79 jobs retained in Tumbarumba alone, $144 million in gross revenue supported in Tumbarumba, $244 million across NSW and up to 63 jobs supported in the transport sector.

Hyne will pay for $42 million of the cost of these but the additional freight costs to divert this resource from export to Tumbarumba is just under $30 million.

REMPLAN’s economic analysis shows the impact of the bushfires, without getting additional logs to the Tumbarumba Mill, is significant. For the town of Tumbarumba, the loss in gross revenue over the next three years is $177 million with a loss of 137 jobs.

While logs are exported and jobs are lost in regional NSW as a result of the bushfires, the timber market will need to be supplied by imported goods. Hyne remains committed to finding ways of preventing this from occurring and appreciates the Tumbarumba community support.

 

ENDS

Contact: [email protected] / 0455 087 118