A major new forestry project proposed for South-West Victoria could provide a significant boost to the regional economy, with a planned $200 million timber manufacturing hub expected to create jobs and produce high-value timber products for Australia’s construction industry.

The proposed Future Portland Hardwood Timber Manufacturing Hub would be located near Portland, in the heart of one of Australia’s important plantation forestry regions. The project aims to process locally grown blue gum timber into a range of building materials rather than exporting the timber as lower-value wood chips.

A feasibility study led by the Green Triangle Forest Industries Hub found the manufacturing facility could be commercially viable and help create a stronger local supply chain for timber products. The project is designed to add value to plantation resources by processing timber closer to where it is grown, supporting regional manufacturing and reducing reliance on imported building materials.

The proposed facility is expected to create up to 74 permanent full-time jobs, providing new employment opportunities for people in the South-West Victorian region. The project could also generate additional indirect employment through transport, forestry services, maintenance, construction and supporting industries.

The announcement comes during a period of significant change for Australia’s forestry sector. Victoria’s timber industry has been adapting following the end of native forest logging, with governments and industry groups focusing on plantation forestry, manufacturing and alternative timber products.

Industry representatives say projects like the Portland hub could help strengthen regional economies by shifting towards modern timber manufacturing and creating more value from plantation-grown resources. The Australian Government has also identified advanced timber processing and engineered wood products as important areas for future growth in the forestry sector.

The hub would cover approximately 35 hectares and is planned to become a centre for producing timber products used in construction. Supporters say increasing local timber manufacturing capacity could help address demand for housing materials while supporting regional jobs.

The Victorian Government has committed $1.75 million towards the next stage of the project, allowing further planning and development work to continue.

Forestry remains an important industry across the Green Triangle region, which covers parts of south-west Victoria and south-east South Australia. The area has a long history of plantation forestry, timber processing and manufacturing, with many communities depending on the sector for employment and economic activity.

Supporters of the project believe the hub could represent a new chapter for the forestry industry by focusing on innovation, sustainable plantation use and locally manufactured products. They say creating more advanced processing facilities will help regional Australia compete in a changing global timber market.

However, forestry projects continue to attract discussion about environmental impacts, land use and the future balance between industry development and conservation. The success of future forestry initiatives will depend on maintaining sustainable practices while supporting communities that rely on the industry.

The proposed Portland timber hub represents a significant opportunity for South-West Victoria, combining regional employment, manufacturing growth and a new approach to using Australia’s plantation timber resources.