- Forestry company Midway (MWY) has announced plans to build a wood fibre processing and export facility in Tasmania’s Bell Bay
- The company will internally fund up to $5 million for the project during the current financial year
- Midway’s project follows an agreement with the Tasmanian Ports Corporation, allowing for additional exports of wood fibre
- The company expects to start exporting from the facility in 2021, subject to environmental approvals
- Midway shares remain steady today, trading for 77.5 cents
Forestry company, Midway (MWY) has announced plans to build a wood fibre processing and export facility in Tasmania’s Bell Bay.
The company will internally fund up to $5 million for the project during the current financial year.
This construction project follows an agreement which Midway made with the Tasmanian Ports Corporation (TasPorts). The agreement allows additional exports of wood fibre to new and emerging markets from Bell Bay.
Midway’s Managing Director, Tony Price, commented on the project, and on TasPort’s role in the endeavour.
“Midway already exports its own and third-party wood fibre from another facility at Bell Bay, but decided to build its own export facility to provide additional capacity to facilitate growth in sales volume, having successfully secured significant additional resource from both publicly and privately owned forests,” Tony explained.
“As a result, Midway was able to offer TasPorts guaranteed wood fibre volumes and deliver a fit-for-purpose logistics solution that will facilitate further growth in the Tasmanian forestry industry,” he continued.
“Under the agreement, TasPorts will provide Midway with an extended lease on an area in the Bell Bay Industrial Estate to receive and process logs, and transport product for stockpiling in the Port at Berth 7. Midway will install its own processing and transport equipment at this site, and utilise the adjacent ship-loading infrastructure at Berth 6,” he said.
While the project is subject to final environmental approvals, the company expects to start exporting from the facility in 2021.
News of Midway’s expansion into Bell Bay was announced on Friday August 7, causing the company’s share price to rise 6.16 per cent. Midway shares remain steady today, trading for 77.5 cents at 10:40 am AEST.