Dormit wins timber bid

By Casey Neill
DANDENONG pallet manufacturer Dormit has spent $19 million for a three year supply of timber after winning an auction held by VicForests.
Dormit was last week announced as the successful bidder for the first of three VicForests auctions.
Dormit is Australia’s largest manufacturer of pallets.
The company has sawmilling operations at Dandenong and Swifts Creek and directly employs more than 80 staff.
VicForests will supply Dormit with 311,500 tonnes of small diameter low grade saw log over the next three years, worth $19 million.
VicForests CEO David Pollard said the auction is an outstanding result for Dormit and for regional Victoria.
“The results mark a significant achievement regarding a sustainable and a secure long-term industry driven by adding value to timber harvested from Victoria’s state forests,” he said.
“This is also an excellent outcome for the industry.”
Dormit director Dave Rowe said the result secures the company’s future.
“Our success through VicForests’ on-line auction system makes us feel confident in our long-term future and viability and allows us to invest further into the business,” he said.
VicForests’ online auction system was introduced as part of the State Government’s Our Forest Our Future policy in 2002.
The system required VicForests to move commercial sales of state forest timber to a transparent, open and competitive sales system.
VicForests will conduct another two auctions over the next two weeks for timber supply over the next four years.