Australia’s Associated Kiln Driers to Close Its Yarram Sawmill in Gippsland

On Tuesday, Associated Kiln Driers (AKD) announced it will close its Yarram sawmill in Gippsland, Australia, citing prolonged weakness in housing construction, rising operating costs, and unsustainable near-term demand.

The facility produces lower-grade fiber for landscaping and pallet and packaging uses. The company said the closure will not affect its ability to supply customers.

AKD, Australia’s largest softwood producer, employs 1,000 people nationally and will consolidate production at its larger Colac, Caboolture, Tumut, and Oberon sites. The decision affects 73 employees.

Yarram employees are receiving support through an Employee Assistance Program and are learning about redeployment options at other locations.

In a statement, AKD CEO Shane Vicary said:

“This has been an extremely difficult decision to arrive at—but a necessary one to take—when we consider all the external factors at play and priories what’s best for AKD’s long-term future. To remain a sustainable and competitive Australian business in this sector, we are adapting to market conditions, simplifying our operations, and strengthening the core business at our four major sawmilling sites—which continue to produce the full suite of structural softwood products.”

“Having operated in regional communities for 70 years, the significance of our departure from Yarram is not lost on us. We understand how important our operations have been to the fabric of this region and we are committed to working with local stakeholders in Gippsland to reduce the impact of the closure where reasonably possible. We’re grateful to each and every individual at the site for their hard work, care, and dedication through their time with AKD.”