Tasmania's biggest softwood sawmill is seeking federal funding to complete its Bell Bay expansion.
Timberlink executive general manager David Oliver said the company was seeking a $3.5 million grant for a new scanning system that would strengthen the future of softwood processing.
He said discussions had been held with both major political parties about the funding.
"We have to ensure we remain competitive with the rest of Australia and imported Scandinavian products," Mr Oliver said.
"These funds would be used to purchase a new green mill vision scanning system, helping the Bell Bay mill to remain globally competitive by maximising the use of the softwood plantation resource while delivering productivity to ensure the long-term future of the mill and its 200 jobs.
"The Bell Bay softwood mill employs nearly 200 people and provides a value-add of $150 million to the George Town economy.
"Our plantation softwood processing operations are environmentally sustainable, provide vital local jobs and economic expenditure, and produce timber locally for the housing and construction industry."
Forestry Industry Association of Tasmania chairman Glenn Britton said FIAT supported any industry expansion or upgrade.
"In Northern Tasmania, there's been a resurgence in the industry and we need to support each other," he said.
CFMEU Tasmanian secretary of manufacturing Scott McLean said he had not seen any plans for the new scanning system but would support it.
"Timberlink are producing high value products and providing jobs for workers and contractors," he said.
Labor member for Bass, Ross Hart, and Liberal candidate, Bridget Archer both committed to considering the funding bid.
"Only Labor has a plan to grow jobs in the timber industry by growing our plantation estate. Labor will continue to consider further strategic investments in forestry to support the thousands of jobs in the industry," Mr Hart said.
"The Liberal Party are the strongest supporters of the forest Industry. Timberlink is one of the biggest employers in regional Bass and we will look closely at their proposal," Ms Archer said.
In the past six years Timberlink has spent nearly $30 million in upgrades to ensure its mill's future.
Mr Oliver said that the major parties were strong supporters of the forestry industry and particularly of local downstream processing, and he was hopeful they would see the value in supporting the project.
He said the Tasmanian Government had provided a $13 million grant to the Hermal Group to set up a new hardwood processing facility on the North West Coast, which had been widely welcomed.
"With a relatively modest investment of $3.5 million the Federal Government can similarly act to ensure that local softwood processing also remains strong, competitive and vibrant in Tasmania for many years to come," Mr Oliver said.