KANGAROO Island Plantation Timbers will receive $5.5 million from the federal government to build a biomass pellet mill and handling facility.
SA Senator Anne Ruston said the money will come out from the federal government's $40m Forestry Recovery Development Fund.
The plant will allow the company to process bushfire-affected timber before it decays, she said.
The timber will be used to develop new products and support local jobs as the community continues to recover 12 months on from the devastating bushfires, she said.
"The forestry industry, like other bushfire-affected sectors, has had an incredibly tough year," she said.
"With over 90 per cent of the island's plantation trees damaged or destroyed, this investment will ensure that burnt timber is not wasted."
Ms Ruston said KIPT's biomass pellet mill and handling facility would diversity its products using the damaged timber.
"The forestry industry is a significant contributor to the Kangaroo Island economy and we need to help it get back on its feet and secure processing assets while safeguarding and creating new jobs," she said.
Stan Gorton
Walkley-nominated journalist based at The Islander on Kangaroo Island with an interest in the local community and the environment.
Walkley-nominated journalist based at The Islander on Kangaroo Island with an interest in the local community and the environment.
