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The Benalla Ensign has stated that it was told by an employee of ForestOne that around 140 jobs would be made redundant at the company’s particleboard manufacturing plant in Benalla. Source: Timberbiz ForestOne is one of the area’s largest employers and the shutdown of the particleboard and dry sawmill would have a great impact on the region even if there were fewer job losses than the stated 140. The company will not confirm how many job losses there would be as they say they are still to determine that. There is also no date set for the closure. In a statement ForestOne managing director Ian Fankhanel said that costs were the main factor that had made it “unviable at the present time to continue making particleboard and drying timber”. The company also said that it was facing increasing governmental and compliance costs plus weak demand, and low market prices also contributed. Mr Fankhanel said that the prices sold in the market are some of the lowest in 20 years with no significant lift in demand on the horizon. High freight costs to interstate locations meant the company had been focused on selling within Victoria but Mr Fankhanel said it was the worst performing state in the country. ForestOne will continue to run its green sawmill manufacturing and lamination line and hoped that in the future if demand returned it could start up full production again.

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