A $1 million investment in the Branxholm sawmill - the oldest in Australia - has increased the site's capacity to up to 1400 logs per day, with more upgrades to come.
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CMTP has owned the former Gunns Limited sawmill for 10 years producing wood pallets, export certified timber and manufactured goods, 60 per cent of which is sent to the mainland.
The company installed an optimiser earlier this year which automatically scans logs for the best cutting pattern to the nearest millimetre, increasing the sawmill's efficiency by removing human error.
The technology has become increasingly common in Tasmanian sawmills, with Timberlink at Bell Bay promised $3.5 million in bipartisan funding during the recent election campaign for a green mill vision scanning system.
The federal government provided CMTP with $350,000 of the $1 million required to install the optimiser through the Regional Jobs and Investment Fund.
Dale Jessup, of CMTP, said the project had resulted in "a significant improvement in [timber] recovery" and there were plans for more investment into the site.
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"It's about $1.5 million we've got in two projects: one is an automated sorter and stacker, and the other is for sawdust residue that'll keep the sawdust contained on site and make it a lot easier to load out," he said.
The increased productivity could also result in the addition to five new jobs to the 30 already at the sawmill.
Mr Jessup said the upgrades would help the business compete in the timber products market both in Tasmania and on the mainland.
"It brings the latest technology into the sawmill. We've probably lagged behind a bit with the technology where we've had to use people to make decisions. Now we've got a scanner and optimiser to make decisions," he said.
"The $350,000 from the federal government really tipped the project over the line and enabled us to move forward with it."
The federal government grant was provided in mid-2018.
Bass Liberal MHR Bridget Archer said it was the type of project she wanted to see more of in the state's North and North-East.
"They're critically important to the future of Northern Tasmania - areas out here into the region which have done it tough not so long ago, and we're starting to see them come back stronger than ever," she said.