The Markets For Change campaign was launched last week and will try to persuade some of Japan's biggest home building companies to boycott timber from the Malaysian-based Tasmanian flooring veneer maker.

It follows the success of a similar campaign targeting Gunns' Japanese woodchip customers, which was one of the factors in the company's exit out of native forests.

Circular Head Mayor Daryl Quilliam was outraged at the new campaign and said if it succeeded, 60 people could lose their jobs at the Smithton mill.

``If they are successful, there will be flow-on effects as well. The timber that comes out of Ta Ann goes on to the Burnie port, which would be probably 10 per cent of their operations so that would hurt them, and shipping as well.

``Small businesses in Smithton would be affected and they've been struggling over the last little while already. It could be devastating.''

The environment group was using a website _ taann.com.au _ to target Japan's major customers _ Panasonic, Daiwa House, Sekisui House and Eidai.

The company, which has a mill Leg 1in the Huon, in the state's south, as well as the Smithton mill, was concerned that if just one of those customers cancelled its orders, the rest would follow.

The website said Ta Ann Tasmania had rejected timber from plantations and staked its future on continued access to timber from native forests.

``(It) has actively lobbied to stall an industry-wide transition to plantation harvesting. Ta Ann has received timber from the destruction of Tasmania's world class forests, including timber from old growth forests,'' it said.

However, Ta Ann insisted it did not use old-growth logs because they were too big to be turned into sheets of veneer.

Premier Lara Giddings lashed out at the campaigners yesterday saying she was a strong supporter of Ta Ann Tasmania.