A major new timber processing precinct planned for Portland has secured approval, following a joint announcement by the Federal Government and the Victorian Government.

The project, led by Australian Forest and Wood Innovations (AFWI), will explore the development of a large-scale hardwood and softwood processing facility near the Port of Portland. 

A combined $2.95 million in government funding will support the feasibility study, which aims to strengthen Victoria’s timber manufacturing capacity and cut reliance on imported products.

Member for Western Victoria Jacinta Ermacora said the initiative would bring long-term benefits to the region.

“The Precinct is about unlocking Portland’s potential — driving innovation, creating jobs, and building a stronger, more sustainable future for our region,” she said.

The new facility would use locally grown timber to produce items such as glue-laminated timber, laminated veneer lumber, and prefabricated housing materials.
Federal Agriculture Minister Julie Collins said the investment would help reshape Australia’s timber industry.

“By investing in advanced timber processing facilities, we’re not just building infrastructure — we’re reshaping the industry,” she said.

Over the next two years, more than $7 million worth of research and feasibility work will be completed, drawing on the expertise of industry specialists, researchers, Traditional Owners, and all levels of government. The aim is to design a shared advanced manufacturing hub where businesses can operate independently while sharing essential infrastructure like roads, energy, water, and transport links.

The precinct is expected to boost the supply of high-value timber and speed up production of prefabricated housing solutions.
Federal Labor Senator Raff Ciccone said the project would help make better use of local resources.

“The Precinct Project is a great step towards making more of our timber products here in Australia, supporting local jobs and boosting Wannon’s manufacturing future,” he said.

Located in the heart of the Green Triangle, one of Australia’s largest forestry regions spanning southwest Victoria and southeast South Australia, the precinct would tap into significant local supplies of plantation hardwood and softwood. 

Earlier studies have already shown strong potential for producing glue-laminated timber from hardwoods that have traditionally been exported.