A new $4.5 million sawmill in the Adelaide Hills will be built thanks to a new long-term log supply agreement with Forestry SA, offering improved transportation routes to help industries affected by timber supply shortages.
KSI Sawmills, which currently operates a small mill at Nuriootpa, will build the new mill, with the improved routes central to local timber plantations and downstream markets.
Minister for Primary Industries and Regional Development David Basham said the new $4.5 million mill will help KSI Sawmills more than double their current production to approximately 60,000m3 annually and create nearly 30 jobs.
“The new local log processing program will inject over $12 million in direct value into South Australia’s economy each year,” Minister Basham said.
“I congratulate KSI Sawmills for making this significant investment in South Australia’s timber industry which will increase supply and create local jobs. This investment has been made possible thanks to a new 10-year log supply agreement between Forestry SA and KSI Sawmills,” he said.
KSI will predominantly consume lower grade log from ForestrySA’s plantations in the Adelaide Hills, while the majority of timber products will be consumed by the local packaging industry.
“Some higher-grade products will meet structural grade and be consumed by the local building and construction industry, while residue materials will support Adelaide Hills based agriculture,” Miniter Basham said.
“This will lead to improved product utilisation and better environmental outcomes with less waste, and better estate management for ForestrySA,” he said.
A recent tender process for log supply from ForestrySA has also resulted in new long-term supply agreements.
Minister Basham said these new arrangements will allow for all log of sawmill quality to be provided to the processing industry for increased value-adding, predominantly in South Australia.
He also revealed that ForestrySA’s direct contribution to the economy in regional South Australia has increased by more than 50 per cent as a result.
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KSI Sawmills Director Victor Kyriakou said the new mill is an exciting development for South Australia.
“KSI has been working constructively with ForestrySA for more than 12 years now. We are so lucky to have a forest estate owned by the South Australian Government,” Kyriakou said.
“We are really looking forward to the next stage of expanding our business and encouraging local manufacturing in South Australia,” he said.
Source: David Basham media release