Posted October 02, 2018 18:37:37KDF Forestry in Western Australian has been awarded a $1,2 billion (AUD$1.35 billion) loan from the Federal Government to upgrade and expand its timber processing business in the state.
Key points:KDF forestry will expand its existing operations in the northern state and its new timber processing operations will increase its capacityKey pointsThe state is looking to the loan to help grow its existing timber processing businessesThe State Government will now begin working with other stakeholders to identify the best way to proceed with the investmentIn October last year, KDF Forestry received the federal Government’s $1 billion investment in its timber industry in Western State.
The Federal Government announced a $900 million fund to support the company’s timber processing operation in Western Western Australia, which includes the extension of existing operations to create new capacity.
Key PointsKDF will upgrade existing processing facilities at its Koorool Creek timber processing site to create an additional 800 hectaresThe company has been granted an $8.6 million loan to invest in its existing operationKDF’s new operations in WA are being built in conjunction with the Federal Environment Protection Agency (EPA)The loan, which will be repaid in instalments, will be available to the company from 2020-21.
The KDF will be able to apply for a further $500 million in concessional funding for its operations in 2019-20.KDF has been operating at Kooroo in the Northern Territory since 2011 and was set up in partnership with the EPA to process and process the timber that had previously been exported.
The company said the new project would also add jobs to the local economy.
“The project will help KDF achieve its ambitious target of having a 100 per cent timber processing workforce by 2020, which is key to the success of the project,” KDF chief executive John Hargreaves said.
“It will also allow us to continue expanding the company and expand our existing operations, with the aim of creating a fully operational timber processing facility.”
The EPA’s Chief Operating Officer David Tait said the project was a major step in the right direction for the state’s timber industry.
“This is an important step for the community to see the investment that KDF has made in the Western Australian industry, and the fact that the project will be funded in the next three years means that it will be successful in achieving its target,” he said.KDF is one of three WA companies to receive the EPA loan, along with Gippsland’s Koorong and the NT’s Tuffwood.
Mr Hargrey said the funding was significant, as it would allow KDF to further expand its operations.”KDF is one the only timber processing companies in Western Victoria and it’s a good example for other companies that are looking at Western Australian timber, to look at Western Australia,” he told the ABC.
“We want to make sure that they have access to the best resources and the best facilities and this is going to help us.”KDF said the loan would allow the company to continue to grow its operations and support its employees.
“Our business has grown in WA and we will continue to support our operations and our employees,” Mr Hargremans said.
The project is due to be completed in 2020-22.
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