CHEP Australia will expand its production capacity in collaboration with one of its key Australian timber suppliers.
Working with long-time partner Neville Smith Forestry Products, CHEP’s expansion is expected to support domestic capacity for hardwood milling and pallet production.
It also reinforces CHEP’s commitment to sourcing Australian plantation timber to secure and strengthen the nation’s pallet supply chains.
The CHEP and NSFP partnership began back in 2020, bringing together two Australian-born companies that promote the importance of domestic manufacturing and sustainable sourcing.
Capitalising on Tasmania’s vast plantation hardwood reserves, the collaboration between CHEP and NSFP has enabled NSFP to deliver a $14 million upgrade to its Southwood sawmill in Tasmania’s Huon Valley.
This facility is Australia’s largest and most advanced plantation hardwood timber processer, processing up to 100,000 GMT of plantation hardwood logs annually.
The upgraded sawmill integrates state-of-the-art technology that efficiently transforms sawlogs into high-quality hardwood pallets for CHEP’s Australian operations.
The upgraded facility has also delivered a significant boost to local employment in the Huon Valley.
Since the partnership began, more jobs have been created with the need for a second shift, while an upgrade to the facility and the installation of new equipment have also delivered economic opportunities.
By investing in advanced manufacturing technology and sustainable hardwood processing, CHEP and NSFP are supporting the circular economy while revitalising local industries with long-term, stable employment.
“In boosting CHEP’s capacity and focus on plantation resources, the partnership supports our 2025 sustainability targets, which includes enabling the sustainable growth of two trees for each one used in our operations, and sets a strong foundation for our ongoing ambition to build regenerative supply chains,” said Renee Holbrook, General Manager at CHEP Australia.
“It is a powerful example of how industry collaboration can deliver national impact. Together, we’re securing a supply of durable hard-wood pallets for Australian businesses while investing in regenerative supply chains that support local jobs and protect natural resources.”
As a leading circular business, CHEP, according to Andrew Wilson, Director Global Strategic Sourcing, prefers hardwood in the Australian supply chain for its durability throughout a pallet’s lifecycle.
“In just half an hour, a plantation log that runs through NSFPs’ mill will exit as a stack of new pallets,” he said.
“These pallets will then serve the Australian supply chain, repeatedly, for up to a decade. Our shared values around reuse and responsible sourcing are contributing to a sustainable, more resilient future for Australian industry.”
The collaboration, said Andrew Walker, CEO of NSFP, had created hundreds of thousands of CHEP pallets annually for the benefit of industries across the Australian economy.
“We can now take a certified Plantation Hardwood log and in under 30 minutes transform it into a fully manufactured, painted pallet,“ said Walker.
“This seamless process, from cutting the log into pallet components to final assembly, makes NSFP Southwood one of the most efficient facilities of its kind. This investment ensures we maximise the value of our Plantation resources while maintaining a firm commitment to responsible forestry practices.
“Our partnership with CHEP Australia ensures we make the most of a valuable and sustainably produced resource, Tasmanian hardwood timber, while building local expertise and our national resilience. We’re proud to contribute towards a closed loop system that keeps essential industries moving, turning plantation logs into pallets that power supply chains across the country.”
