Impact of fires being felt with log suppliesFriday 26 May 2017 As reported last week, CHH is consulting its 160 employees about the likely closure of the softwood sawmill at Morwell which is unviable due to significantly reduced timber supply. Hancock lost about seven million trees on its pine plantations in the 2009 Black Saturday bushfires. Combined with earlier bushfires, about 15 per cent of its plantations have been destroyed since 2003.Hancock’s chief executive Karl Kny said the company had spent more than AU$50 million replanting the trees, and had been in “force majeure” — meaning the company was free from meeting its contract obligations due to extraordinary circumstances — since the 2009 fires. “The ramifications of this arson are still impacting us today — there are simply not enough trees left,” Mr Kny said. “This will not change until the replanted trees reach maturity after 2032. “We have been working with CHH to meet our supply obligations as best we can from our plantations, however the volumes and quality of pine sawlogs will fall significantly in the years ahead.” Hancock has negotiated to supply extra product to Australian Paper’s Maryvale plant, but that would come into effect only if the Morwell mill shuts. Mr Kny confirmed Hancock would continue supplying CHH’s Yarram mill. The Victorian Government is unable to assist timber supply to the Morwell mill, as it does not own any softwood plantations. The pending closure of the Morwell mill comes as Australian Sustainable Hardwoods prepares to shut down its Heyfield timber mill.Ms Pulford said discussions about what the Victorian Government could do to save the mill were ongoing. Source: News Limited Australia |
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