$108 million in grants to lift forestry value adding

More than $108 million in funding will be allocated to timber manufacturing companies across the country to encourage more value adding and further innovation in the industry.

The Albanese Government today announced the successful recipients of the Accelerate Adoption of Wood Processing Innovation grant program.

These grant recipients will undertake a wide range of projects which will see the implementation of upgraded and innovative work practices across various industries, including production of activated carbon, housing and construction, packaging, and culturally significant timbers to higher end markets.

Minister for Agriculture, Fisheries and Forestry, Murray Watt, made the announcement with local MP Brian Mitchell at Western Junction Sawmill near Launceston today.

He said the delivery of this program delivered on the Albanese Government's strong support for Australia's sustainable forestry industry.

"Our government understands how important the forestry industry is for communities around the country, but particularly here in Tasmania," Minister Watt said.

"A total of 34 grants will be made, selected by an independent panel, including funding for 4 projects involving First Nations organisations, enabling the use of sustainably sourced timber from traditional lands.

"These grants are about creating more long-term jobs in the forestry sector.

"In the October budget, we committed more than $300 million to support Australia's forest industries to innovate and improve the capacity and capability of the sector.

"In addition to this, the government is establishing the National Institute for Forest Products Innovation and has committed support for specific training for the forestry and wood products industries."

Mr Mitchell said the grant program will support wood processors by stimulating investment in upgrades to existing manufacturing lines and innovation to diversify domestic products.

"Enabling wood processing facilities to use innovative technologies in their production will enhance the forestry industry's ability to supply more of Australia's wood demands into the future," Mr Mitchell said.

"Here in Tasmania that includes projects that improve production processes, and value add to existing operations. More than $15 million in government funding will be spent across five projects, with the total value of new investment set to reach over $45 million."

Funding of between $1 million to $5 million will be provided under the Wood Processing Innovation grant program to 34 successful applications from 2022-23 to 2025-26.

Under the program, recipients are required to provide at least 60% of the total project costs.

This brings the total new investment, including public and private sector funding, to $361 million.

GRANT RECIPIENTS