Following its recently lodged planning application to the Wattle Range Council, Sydney-based company, Shield Formply, announced that plans are underway to build a $20 million timber veneer plant at Kalangadoo, a small district in south Australia.
Established in 2007, Shield Formply manufactures high standard formply for the Australian market and is the third largest formply supplier in Australia.
The proposed veneer plant will be located at the current mill site at Kalangadoo and will generate about 80 jobs.
Susie Li, Shield Formply spokesperson, said construction will begin next year and involve installing log peeling equipment, a boiler and dryer.
Once built, the plant will produce 100,000 cubic metres of veneer annually for export to make construction formply.
“We identified the South East as an opportunity to source a log supply grown in a sustainable manner allowing long-term investment in the region,” Li said. “Locally grown blue-gum and pine will be peeled and dried for export to make formply for the construction industry.”
Wattle Range Council Mayor Peter Gandolfi who welcomed the announcement said, “It will provide job opportunities for locals and will be a much-needed economic stimulus to the Kalangadoo township,”
The Council had assisted Shield Formply to identify opportunities for a veneer plant. Earlier this year, Gandolfi visited one of its manufacturing plants in China and arranged an introduction to the owner of the Kalangadoo mill. Since then, there have been multiple visits by Shield Formply representatives to the region.
“Kalangadoo has had a long history with the timber industry and the working relationship between the owners of the mill the Badenoch family and Shield Formply has been outstanding,” Gandolfi said.
He said Council continues to promote capital investment opportunities for the region particularly in value-adding their products to generate jobs for the locals.