A brand new $4.5 million sawmill within the Adelaide Hills might be constructed which can improve timber provide and create native jobs due to a brand new long-term log provide settlement with ForestrySA. Supply: Timberbiz
KSI Sawmills, which at present operates a small mill at Nuriootpa, will construct the brand new mill which might be strategically positioned permitting for enlargement, providing improved transportation routes central to each native timber plantations and downstream markets.
Minister for Main Industries and Regional Improvement David Ba-ham mentioned the brand new $4.5 million mill will assist KSI Sawmills greater than double their present manufacturing to roughly 60,000m3 yearly and create practically 30 jobs.
“The brand new native log processing program will inject over $12 million in direct worth into South Australia’s economic system every year,” Mr Basham mentioned.
“I congratulate KSI Sawmills for making this important funding in South Australia’s timber trade which can improve provide and create native jobs. This funding has been made potential due to a brand new 10-year log provide settlement between Forestry SA and KSI Sawmills.
“KSI will predominantly eat decrease grade log from ForestrySA’s plantations within the Adelaide Hills. The vast majority of timber merchandise might be consumed by the native packaging trade.
“Some higher-grade merchandise will meet structural grade and be consumed by the native constructing and development trade, whereas residue supplies will assist Adelaide Hills primarily based agriculture.
“This may result in improved product utilisation and higher environmental outcomes with much less waste, and higher property administration for ForestrySA.”
Mr Basham mentioned a latest tender course of for log provide from ForestrySA has resulted in new long-term provide agreements, serving to to safe the way forward for the home processing trade together with KSI Sawmills.
“New preparations will enable for all log of sawmill high quality to be supplied to the processing trade for elevated value-adding, predominantly in South Australia,” he mentioned.
“ForestrySA’s direct contribution to the economic system in regional South Australia has elevated by greater than 50% in consequence.”
KSI Sawmills Director Victor Kyriakou mentioned the brand new mill is an thrilling growth for South Australia.
“KSI has been working constructively with ForestrySA for greater than 12 years now. We’re so fortunate to have a forest property owned by the South Australian Authorities,” Mr Kyriakou mentioned.
“We’re actually trying ahead to the subsequent stage of increasing our enterprise and inspiring native manufacturing in South Australia.”