ITC will supply 100,000 tonnes of blue gum logs a year Lignor already has a major contract with Great Southern Plantations to provide 200,000 tonnes of timber.

Lignor managing director Glyn Denison said the contracts would be complemented by more agreements with other log suppliers. “Securing the log requirements for the plant from major blue gum resource companies was an important milestone for the company.”

The AS$300m project in Western Australia has been planned to produce engineered wood products from local hardwood eucalypts and native forest residues for housing and construction. Output is expected to reach 240,000m3 by 2011.