The log deal will see BSW receive an additional 600,000m3 of larch log supply over a 10-year period, with all logs being sourced from Welsh woodlands. Existing annual log supplies of more than 700,000m3 have also been resecured over the same period.
BSW said the log deal would have a “significant” impact on the Newbridge mill, whose stated current sawn timber production capacity is 150,000m3 annually.
It will also provide a ready market for larch, which is having to be felled as part of the project to combat the tree disease phytophthora ramorum, which is affecting about a fifth of Welsh larch.
The company is now developing detailed plans to increase overall capacity – with an announcement due to follow later in 2014.
“Increased capacity will mean more shifts and more jobs in the area, and the 10-year supply guarantee will allow us to continue investing in developing the site, reinforcing our pledge to maximise our supply and production of home-grown timber, also providing exciting new opportunities for the market,” said Tony Hackney, BSW chief executive.
The facility is already the largest single site sawmill in Wales.
“This is good news for the timber industry in Wales and provides much needed stability for one of the largest companies in the Welsh timber industry,” said Trefor Owen, director for National Services for Natural Resources Wales.
