The Bombala region of New South Wales (NSW) is set for a A$60m expansion of its timber milling capacity after Willmott Forests Ltd won the tender for a long-term sawlog parcel of 250,000m³ per year.

NSW primary industries minister Ian Macdonald announced the news, and said Willmott would expand its existing Bombala mill to increase capacity for the new wood, expected to come on stream during 2010.

The expansion will lead to hundreds of new jobs for the area.

“This tender will maximise the return to Forests NSW from the sale of sawlog and biomass material grown in the plantations of the region,” said Mr Macdonald.

Willmott will use the wood to produce decking, fencing, landscaping products, construction timber and treated products.