Softwood sawmiller Timberlink is investing $63 million into its Bell Bay operations as part of a plan to significantly increase its structural timber output.
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Starting from next year, the two-stage upgrade will include a new kiln for drying wood and an expansion of the site's existing sawmill, as well as other infrastructure improvements.
The project is expected to increase the timber manufactured at the site by more than 50 per cent, providing material for an estimated 7000 new houses.
The company expects the capital works to generate 25 contractor jobs and, when complete, the expanded facility will employ an additional 18 permanent full-time positions.
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The plans mirror a $63 million investment by the company into its Tarpeena sawmill in South Australia, as part of a push by the company into new structural timber materials.
According to Timberlink chief executive Ian Tyson, the upgrades were brought forward to support additional supply into the Australian market.
"This is an exciting day in the history of Timberlink," he added.
"At the completion of this project, the combined output of Timberlink's Bell Bay Tasmania and Tarpeena South Australia manufacturing facilities will position Timberlink to increase supply of manufacture of structural timber for use in the construction of homes in Australia."
The sawmill upgrades arrive as timber supplies around the nation remain tight. The shortage has been further constrained by a nationwide housing boom, with many builders unable to source sufficient structural timber to complete houses.
With that in mind, Mr Tyson said the increase in structural timber from the company's two Australia-based sawmills would help - but not solve - the timber deficit.
When asked how Timberlink would feed the significant increase in output at site, a company spokesperson said agreements were in place with its pine plantations as part of a staged expansion.
The significant investment is the latest in the company's ever-growing plans for its North Tasmanian operations.
In January last year, the company poured a further $27 million into the site ramp production up to 50,000 cubic metres of throughput.
To date around $120 million has been invested into the Bell Bay sawmill, which Timberlink first purchased back in 2013 from the receivers of the then-defunct Gunns Limited.
This latest round of upgrades are scheduled to complete in 2025.
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