Australian Sustainable Hardwood’s Heyfield mill is a critical asset to Gippsland. If it were to close, the economic and employment impact on the local community would be absolutely devastating. The Heyfield Mill is not only Australia’s largest hardwood mill, but also Australia’s largest hardwood product manufacturer.
“With Hazelwood power station closing, the Gippsland region has a very challenging time ahead. The additional closure of the Heyfield mill would be a critical event that the region would be unable to sustain,” said Committee for Gippsland CEO Mary Aldred.
A Deloitte Access Economics report for VicForests in October 2015 found that Morwell has one of the highest dependence on the native (re-growth and plantation) timber industry for employment, as measured by the percentage of all employment in the study area. On top of the impending closure of Hazelwood power station, this would be a catastrophic blow for the Latrobe Valley.
“The impact of the Heyfield mill closing right now would be the equivalent of multiple Hazelwoods closing,” said Ms Aldred.
The closure of the Heyfield mill would also have major repercussions for other timber mills in the region. Australian Sustainable Hardwood’s mill is the largest hardwood manufacturer in Australia and manufactures high quality furniture and materials at its Heyfield mill. There are at least 5,000 downstream jobs dependent on Australian Sustainable Hardwoods (ASH) to supply timber for manufacturing in Melbourne and surrounding areas. If the Heyfield mill were to close they would need to rely on imported materials that would not ensure the quality or environmental standards that Australian Sustainable Hardwoods provides.
“This is a fixable problem, it is not an unrepairable situation, and unlike some other industries, we are talking about a sustainable, profitable business. We urge the Victorian Government to meet with the owners of ASH, and lock in previously committed supply levels that will give the business the long term security and resource they require,” said Ms Aldred.
“The timber industry is a backbone industry of Gippsland. We can’t afford to lose it. If the Heyfield mill closes, it will put thousands more jobs at risk and businesses and towns under duress. These are highly skilled jobs that support timber communities right across the region,” added Ms Aldred.
The Committee for Gippsland has made representations to office of the Minister for Regional Development and Agriculture the Hon Jaala Pulford, MP, and today wrote to the Premier of Victoria, the Hon Daniel Andrews, MP urging him to resolve the crisis.
“We understand there is a plan from the industry to move completely to plantation resources within 25 years, and for the sake of the 250 workers at the Heyfield mill, it is a plan that deserves to be heard by the Victorian Government,” said Ms Aldred.
“Like other jobs around the state, every one of these jobs is worth fighting for, and Victoria can’t afford to lose them,” added Ms Aldred.