Benalla manufacturing site to reduce operations

ForestOne Manufacturing are closing the manufacturing operations of their dry sawmill and particleboard lines in Benalla due to increased manufacturing costs, combined with increased external costs, which have made it unviable at the present time to continue making particleboard and drying timber. Managing director Ian Fankhanel said they also face ever-increasing governmental and compliance costs to do business. "Regretfully, this closure will likely mean that we will need to make a significant reduction in the number of roles onsite as we restructure our operations over the coming weeks," he said. "We will continue to run our green sawmill manufacturing and our lamination line to make our Designer One decorative range. "We continue to face weak market conditions and, unfortunately, the outlook is still very poor. "The prices being sold at in the market are some of the lowest we have seen in 20 years, with no significant lift in demand on the horizon." Forest One has distribution warehouses in all capital cities of Australia selling products manufactured at the Benalla site and other products imported from overseas. Approximately 80 per cent of Benalla product is sold into Victoria due to high freight costs to transport interstate. "Victoria is by far the worst performing state in the country with weak demand and, as a result, has the biggest impact on Benalla," Mr Fankhanel said. "We hope that, in the future, if and when demand returns, we can recommence full production again. "We find ourselves in unprecedented, challenging times and facing very weak demand, particularly in Victoria."

Benalla manufacturing site to reduce operations

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