$200M Timber Manufacturing Hub Proposed for Portland, Victoria

A $200 million manufacturing hub is expected to provide a new locally made timber product for the Australian construction industry, helping fill a gap left by the end of native timber logging.

The proposed Future Portland Hardwood Timber Manufacturing Hub would span about 35 hectares in the heart of timber plantation country near Portland, about four hours west of Melbourne.

The Green Triangle Forest Industries Hub had led a feasibility study on the project, which it said confirmed viability of turning locally-grown blue gum, currently exported as wood chips, into a range of building materials on-site in the state's west.

The organisation said this included glue-laminated timber which was as strong as steel or concrete and was widely used in building construction.

Documents said the proposed plant could replace half of the glue-laminated timber currently imported each year, valued at about $70 million dollars, and it would help address a mismatch between supply and demand for timber in Australia.

"Large volumes of plantation hardwood are exported with minimal processing, while imports of high value engineered timber products continue to rise," the feasibility study said.

The documents said the end of native logging in Victoria saw the demand for imported timber double while the National Housing Accord pushed for 1.2 million new homes to be built by 2029 across the country.

Victorian Forest Products Association chief executive Andrew White told ABC South West Victoria breakfast that the precinct would help meet this 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.

Mr White said there was also net zero potential in the precinct, with blue gum glue-laminated beams reducing the carbon footprint of a building while wood offcuts could also be used to create bio-energy to power the site.

Boost to jobs

The Victorian government said the site would create up to 74 full-time ongoing jobs and about 150 jobs during the construction phase.

The feasibility study received more than $500,000 in state government funding through the Portland Diversification Fund in 2025, which aimed to encourage economic diversification and resilience in the wider Portland region.

The state government provided a further $1.75 million dollars to fund the next steps of development.

Minister for Regional Development Michaela Settle said the completed feasibility study was good news for Portland.

"Portland has everything needed to become a major hub for advanced timber manufacturing — a skilled workforce, a strong forestry industry and a community ready to grow," she said.

"Victoria's plantation forestry industry has enormous potential, and this study is an important step towards unlocking new markets for locally grown timber and creating jobs."

Glenelg Shire Council Mayor Karen Stephens welcomed the proposal.

"The completion of the Hardwood Timber Manufacturing Hub Feasibility Study, alongside Council's Future Portland Project, demonstrates a proactive approach to understanding and preparing for future opportunities across Glenelg Shire," she said.