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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2016-07-05 Daily Xml
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VTT Cellulose Fibre Chain Value Study

In reply to the Hon. D.W. RIDGWAY (Leader of the Opposition) (23 March 2016).

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy):

The South Australian government commissioned the VTT Technical Research Centre of Finland (VTT) to work with the South-East's forestry industry to identify a sustainable roadmap and achievable market opportunities for higher value-added activity in the forestry sector. VTT is a world leader in translating cellulose fibre opportunity research into business opportunities and is globally connected to major international cellulose fibre players.

The South East Forestry Partnerships Program (SEFPP) is a $27 million initiative of the South Australian government to assist the forest and wood products industry in the South-East by encouraging further investment in new and existing businesses.

Since the release of the VTT Cellulose Fibre Value Chain Study (the Study) in September 2013, the government has required all SEFPP applications to demonstrate how their projects help deliver on the outcomes identified in the study, including the development of innovative products and technologies to increase sales volume and production rates, to benefit the entire forestry supply chain in the South-East.

Since the SEFPP commenced, the government has announced support for projects worth over $79 million, which are expected to contribute significantly to the forestry sector in the South-East.

Since 2015 the following projects have commenced with SEFPP support:

McDonnell Industries—the installation of equipment at their Mount Gambier sawmill to enable processing of smaller logs which would otherwise be exported;

Roundwood Solutions—the installation of a micromill to utilise larger diameter wood and a new combined gasifier and biochar plant to utilise wood residues from current operations such as sawdust, shavings and woodchips, to produce biochar and hot air. Hot air is used to generate steam to dry posts. Biochar is sold as a fertiliser extender in local forest and agricultural markets;

South East Pine Sales Pty Ltd—a new softwood sawmill process with scanning and sawing optimisation capability;

H & L Scheidl Pty Ltd—a new kiln drying facility and treatment plant to value-add existing products, expand Scheidl's market and increase utilisation of forest products. The kiln will be heated by solar energy and a bioplant run on mill residues. The post peeling line will enable more posts to be produced;

3RT Holding Pty Ltd—a new customised 3RT Strand Technology production unit in Mount Gambier. Low-value wood (first thinnings, damaged logs, mill offcuts) will be transformed into high-value timber products (compressed wood) with similar properties to mature hardwood;

Timberlink Australia Pty Ltd—a new high-speed board sorter, scanner, stacker and grading system to enable processing of more small logs and for the current Tarpeena green mill to run at maximum capacity; and

Association of Green Triangle Growers Incorporated—for feasibility studies of the opportunity to develop significant processing capacity in the Green Triangle region.

As per the study's objectives, these projects are helping transform the industry so it is globally competitive by modernising existing processes and developing innovative products, and represents a further significant investment in this key industry for the state and the Limestone Coast.


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