CHEP Australia, one of the country’s largest pallet suppliers, will expand capacity in partnership with Tasmanian-based Neville Smith Forestry Products (NSFP), building on a relationship that began in 2020, and aims to strengthen domestic hardwood sourcing and secure critical pallet supply chains.
Together, the companies have invested more than $14 million to modernise NSFP’s Southwood sawmill in the Huon Valley. Now Australia’s largest plantation hardwood processor, the facility handles 100,000 green metric tonnes of logs each year, transforming them into durable pallets for CHEP’s national network.
“Boosting our focus on plantation resources supports our goal of growing two trees for each one used,” said Renee Holbrook, General Manager at CHEP Australia. “This upgrade lays the groundwork for regenerative supply chains and helps us meet our 2025 sustainability objectives.”
The mill’s new automated saws, scanners and sorting lines have also driven local job creation. A second production shift now employs additional machine operators, maintenance technicians and logistics staff in the Huon Valley region.
“In just 30 minutes, a hardwood log entering our mill emerges as a stack of painted pallets ready for dispatch,” explained Andrew Wilson, CHEP’s Director of Global Strategic Sourcing. “These pallets then circulate through Australia’s supply chain for up to a decade, reflecting our model of reuse and durability.”
NSFP CEO Andrew Walker described the partnership as a model of closed-loop manufacturing. “Our seamless process maximises resource value while upholding responsible forestry practices,” he said. “By converting plantation logs into finished pallets on-site, we reduce reliance on imports and protect native forests.”
