17/11/2021

Structural timber supply in South Australia will get a boost with the Marshall Liberal Government investing more than $750,000 in two projects aimed at increasing the supply for South Australian home builders.

Local timber firms NewGen Timber and Morgan Sawmill will receive funding from the Additional Construction Timber initiative following a recent Expression of Interest (EOI) process.

Minister for Primary Industries and Regional Development David Basham said the Marshall Liberal Government has pledged $3 million to support getting more timber to market.

“The booming local housing industry has been great news for our economy and jobs and a positive sign of confidence in the South Australian economy, but the increased demand for timber has put real pressure on our supply chains,” Minster Basham said.

“These two projects about to get underway will provide a significant boost towards addressing the unprecedented demand for building timbers currently being experienced by South Australian builders.

“Our forest and wood products industry along with the construction and building sector play an essential role in the success of the state’s economy.

“However, record home approvals combined with a significant delay in the supply of building materials, including timber, has created a perfect storm for the building industry.

“Given this situation, we felt it was vital to work with industry to explore all options to alleviate supply pressure and the recent EOI process is just part of this approach.

“The process provided industry with an opportunity to consider innovative solutions towards supplying additional timber to the market. I am delighted that the local forest and wood products industry have provided options to meet this short-term challenge.

“The Marshall Liberal Government is still looking at further options to expand the capability of our timber production and it is likely more companies will benefit from this grant initiative.”

NewGen Timber based in Mount Gambier will receive $480,000 towards a $552,000 project aimed at delivering additional timber over the next 12 months with yard upgrades and running additional shifts.

Morgan Sawmill will receive $283,000 towards Stage 1 of the Morgan Sawmill Jamestown project.

This will involve the hiring and purchase of required equipment, along with the recruitment and upskilling of staff, to enable additional timber to be produced as soon as the equipment is installed.