The abrupt closure of a sawmill in south-east Victoria has left 73 employees without work, sending shockwaves through the local community. The announcement came as a harsh blow just weeks before the holiday season, leaving many in Yarram, a town in Gippsland, grappling with this unexpected news.

Employees at the Associated Kiln Driers (AKD) sawmill were informed of the shutdown, marking a significant shift for a company known as the largest softwood producer in Australia. AKD, which boasts a nationwide workforce of 1,000, has been a staple in the industry, but the Yarram facility has struggled amid declining demand from the construction sector and rising operational expenses.

Shane Vicary, the company’s chief executive, highlighted the challenges faced by the Gippsland sawmill. “To maintain a sustainable and competitive position in the Australian market, we’re responding to these economic pressures by streamlining our operations and reinforcing our primary business at our four major sawmilling sites,” he explained. Despite the closure, these sites continue to produce a comprehensive range of structural softwood products.

Reflecting on the decision, Vicary acknowledged the emotional impact on both the company and the community. “Having been a part of regional communities for 70 years, we understand the weight of our departure from Yarram,” he stated, underscoring the deep-rooted connection AKD has had with the area.

“To remain a sustainable and competitive Australian business, we are adapting to market conditions, simplifying our operations and strengthening the core business at our four major sawmilling sites, which continue to produce the full suite of structural softwood products,” he said.

“Having operated in regional communities for 70 years, the significance of our departure from Yarram is not lost on us.

“We understand how important our operations have been to the fabric of this region and we are committed to working with local stakeholders in Gippsland to reduce the impact of the closure where reasonably possible.”

Local MP Danny O’Brien said the sudden news of the closure was a devastating blow for the community, which had a jobless rate above the state average.

“Seventy-three jobs lost in a town the size of Yarram is enormous,” he told radio station TRFM.

“These are local families, local businesses and a whole community that will feel the impact of this closure immediately.

In a social media post, the Timber, Furnishing and Textiles Union said it was lobbying other timber mills to take some of the impacted workers who lost their jobs at Yarram.