Housing market blamed for mill closure



BORAL'S Bostobrick timber mill is expected to close by the end of July, with the loss of more than 20 jobs in the Dorrigo area.

Boral Limited announced the closure of its mills at Bostobrick and Kempsey this week, with all 47 staff losing their jobs.

The closures follow the completion of Boral's new $24 million timber processing plant at Herons Creek, which has integrated two sawmills, one older mill and one new plant, with improved safety features.

Boral said the new mill was designed to operate more efficiently with the regrowth log resource available from Forests NSW. The new plant will increase production to two shifts a day in July.

The executive general manager of Boral Timber, Peter Boyd, said Boral was hoping that a number of experienced timber workers could be redeployed to other operations.

He said the new Herons Creek plant had 25 positions available and in the next few weeks Boral management would discuss the specific roles they wanted filled.

Boral has attributed the closure of the two older mills, which are less efficient at processing regrowth logs, to the depressed state of the NSW housing market, as well as the opening of the new mill.

Boral said it did not anticipate any disruption to its services or the supply of timber to customers.

A meeting between the Bostobrick timber mill workers and Boral management was due to be held at Dorrigo late yesterday.



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