Modern sawmiling and processing facility announced for Nannup

4/5/99
Nannup could become the showpiece of Western Australia's new native hardwood timber industry under the Regional Forest Agreement.
The State and Commonwealth Governments today announced their support for a modern sawmilling and processing facility for the town. The new facility would focus on producing high value indoor and outdoor furniture components, flooring and similar products for Australian markets and export.
The reduction in the sawlog harvest as a result of the RFA means the existing Nannup mill owners, Bunnings Forest Products, are likely to rationalise their operations, thus creating the opportunity for a new venture.
Western Australian Environment Minister Cheryl Edwardes said the State Government would work with Bunnings to ensure a seamless transition to the new facility.
"The industry development package announced as part of the RFA provides the opportunity to redevelop the existing mill into a complex that will use the latest downstream processing and value adding technology to supply seasoned timber to a range of users, including furniture manufacturers and craftspeople," Mrs Edwardes said.
"The concept will not only protect timber workers' jobs in the Nannup region, it will create additional employment in surrounding areas such as Busselton and Margaret River."
Federal Forestry Minister Wilson Tuckey said the proposal for Nannup would provide an impetus for other sectors of Australia's native timber industry to use new technology to concentrate on value-added products rather than the traditional construction materials such as wall studs and roofing timbers.
"WA has been at the forefront in research into new downstream processing techniques for a range of native timbers," Mr Tuckey said.
"This has resulted in the development of low-cost solar-powered drying kilns and the manufacture of wood panels.
"This research will provide a further foundation on which to build a value-adding facility in Nannup."
Mrs Edwardes said the expressions of interest would be called from the private sector to develop the new mill. There already had been two timber operators interested in this exciting new venture.
A contract for 20,000 cubic metres of jarrah sawlogs would be specifically allocated to the Nannup facility. This would be derived from allocations of logs available following the exit of sawmilling businesses under the Business Exit Assistance component of the forest industry adjustment program.
The expressions of interest would seek operators committed to milling of whole bole logs and production of high value components that enhance employment in the local industry.
(Whole bole logging means that timber mills take delivery of the whole tree bole rather than sawlogs that are graded in the forest. It enables mills to make greater use of the whole tree instead of the traditional grading system that results in much material left behind.)

Mrs Edwardes said the plan was designed to ensure, as far as possible, full employment of mill workers in Nannup who might be affected by the reduction in the level of jarrah sawlogs available to the mill. The current level was around 40,000 cubic metres a year.
However, both Governments had also put in place a range of opportunities for workers who left the mill by choice or for some reason could not be employed in the new mill.
Mrs Edwardes said sealing of strategic tourist roads near Nannup would be brought forward, providing local job opportunities, and additional workers would be employed by the Department of Conservation and Land Management under an enhanced silviculture program of thinning in regrowth jarrah forests.
In the event that some workers could not find alternative opportunities, additional assistance would be available for retraining and relocation.
The State Government and Bunnings Forest Products also would work together to look at ways in which Nannup mill employees, currently renting Bunnings' houses on the sawmill lease, could buy these houses.
Mrs Edwardes said tourism in the Nannup region also would be enhanced by development of a major tourist attraction in the Donnelly River Valley between Nannup and Manjimup.
"The people of Nannup have suffered uncertainty during the long period of the RFA process, but they have shown great commitment to a sustainable industry and a pride in their work," she said.
"Their skills will serve as a showcase for the future of the industry in Western Australia."
Media contacts: Minister Edwardes Nicole Trigwell 9421 7777
Minister Tuckey Graham Hallett 0419 6884400