A proposed $200 million hardwood timber manufacturing hub in south-west Victoria could deliver locally made structural beams to the Australian construction industry and take a significant bite out of the country’s growing timber import bill.

The Future Portland Hardwood Timber Manufacturing Hub, reported by ABC South West Vic, would sit on about 35 hectares near Portland, roughly four hours west of Melbourne. A feasibility study led by the Green Triangle Forest Industries Hub found the plant is viable and could replace about half of the glue-laminated timber Australia currently imports each year, worth around $70 million.

Glue-laminated timber, or glulam, is engineered by bonding layers of structural timber under pressure into beams strong enough to substitute for steel or concrete in mid-rise and commercial construction. Australian builders have been pulling in growing volumes from overseas. The feasibility study pointed to two pressures driving that trend: Victoria’s end to native timber logging, which cut domestic supply, and the National Housing Accord’s target of 1.2 million new homes by 2029, which pushed demand higher.

Victorian Forest Products Association chief executive Andrew White told ABC South West Victoria the hub would help meet long-term housing demand. “We know the long-term housing demand is going to grow, so that long-term demand for that timber is going to be there, particularly in the mid-rise residential space and for these types of beams that have structural capability,” he said. Blue gum plantations already cover about 54,000 hectares across the Green Triangle region in Victoria and South Australia, but most of that wood is currently exported as raw chips with little processing done locally.

The Victorian Government has committed $1.75 million to fund the project’s next development steps, following more than $500,000 in earlier funding through the Portland Diversification Fund in 2025. The site is expected to create up to 74 permanent full-time jobs and around 150 construction-phase positions. Regional Development Minister Michaela Settle said Portland had the workforce and forestry base to support a major advanced manufacturing operation.

For builders and carpenters, a local glulam supply would matter most at the ordering end. Import-dependent supply chains have been a pain point since the construction boom pushed lead times out and freight costs up. Whether the hub can price competitively against established overseas suppliers remains to be seen, the project still has development stages ahead before any shovels go in the ground.

Frequently asked questions

What is glulam timber and why do builders use it?

Glue-laminated timber, or glulam, is made by bonding layers of structural timber together under pressure. The resulting beams are strong enough to substitute for steel or concrete in mid-rise and commercial construction.

Why does Australia import so much glulam?

Two factors have pushed imports up: Victoria’s end to native timber logging reduced domestic supply, and the National Housing Accord’s target of 1.2 million new homes by 2029 has driven demand higher.

How much government funding has the Portland hub received so far?

The Victorian Government has committed $1.75 million for the project’s next development steps, on top of more than $500,000 in earlier funding through the Portland Diversification Fund in 2025.

Sourced from ABC News. Original article.