A major step forward for regional manufacturing and the future of timber processing in the Green Triangle.

The Australian and Victorian Governments have announced a joint investment to support early-stage research into what could become Australia’s largest plantation hardwood and softwood processing facility, located in Portland, Victoria.

The ‘Precinct Project’ will explore the development of an advanced timber manufacturing and innovation hub, designed to process locally grown timber into high-value products such as glue laminated timber, laminated veneer lumber, and prefabricated housing components.

Led by Australian Forest and Wood Innovations (AFWI), the feasibility study forms part of a broader $7 million research and development initiative. The project brings together industry, government, academic institutions, and Traditional Owners to assess the viability of a shared manufacturing precinct over the next two years.

If realised, the facility has the potential to create up to 200 jobs while strengthening regional supply chains and reducing reliance on imported timber products. The precinct model will allow independent businesses to operate within a shared infrastructure network, improving efficiency across transport, energy, and production systems.

Strategically located near the Port of Portland, the development sits within the Green Triangle - one of Australia’s most significant plantation forestry regions spanning south-west Victoria and south-east South Australia.

The initiative builds on previous government investment in the region, including funding for feasibility studies and infrastructure upgrades aimed at supporting long-term growth in timber manufacturing and regional industry.

Precinct Launch event

Supporting Innovation and Sustainability

The project also aligns with ongoing research through the Australian Centre for Climate Smart Forestry at the University of Melbourne, helping to identify new opportunities for sustainable timber production and advanced manufacturing in Australia.

Government representatives have highlighted the project’s potential to drive job creation, support regional economies, and position Australia as a leader in modern timber manufacturing.

The Precinct Project represents a significant step toward connecting forests to frames - enabling more locally sourced timber to be processed, manufactured, and used within Australia’s growing construction sector.


Source: Victorian Government – Premier of Victoria

For the full official press release, you can download the original transcript below:
Download Press Release (PDF)

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