The Albanese government and Australia’s $28 billion forest products industry are backing a plan to turn plantation forest fibre into prefabricated timber housing, betting that a new IndustryEdge‑led project, THE PRECINCT, can use modern methods of construction (MMC) to short-circuit its acute housing shortage.
Officially known as the “Advanced Manufacturing Innovation Strategy and Feasibility to Catalyse Large‑Scale Prefabricated Dwelling Adoption,” Wood Central understands that THE PRECINCT is a multi‑year, multi‑phase feasibility project announced last week at the Forestry Australia conference and backed by Australian Forest & Wood Innovations (AFWI). Its aim is to scale engineered wood products, prefabricated dwellings and bio‑based co‑products so Australia keeps the value of its timber at home rather than shipping low‑value fibre offshore.
“IndustryEdge is grateful for the opportunity to lead development of The Precinct project, and we thank AFWI and the Federal Government for the commitment and major contributions,” according to Tim Woods, Managing Director of IndustryEdge. “Most of all, we want to thank the industry, research and community partners we have worked with over several years to bring this project into being.”
“For more than five years, the Green Triangle region’s plantation forest industries have supported our work to progress from understanding fibre flows to assessing opportunities, developing product options and now developing this substantial domestic manufacturing capability. We are excited to continue working with our research and development partners and to engage even more deeply with the Green Triangle region, on a project that has potential to be nationally transformative.”
Last week, Tim Woods spoke in Adelaide at the four day Forestry Australia conference where he, with Dr Joseph Lawrence – executive director of the $100m plus Australian Forest & Wood Innovations – spoke about Australia has a once-in-a-generation opportunity to transform its forest-based industries and use forest science to solve many of its challenges.
Supported by significant industry, financial, and in‑kind contributions, the project brings together industry, research and government partners – including the Green Triangle Forest Industries Hub, FWPA, the Victorian Government, and the Victorian Forest Products Association – to run several integrated feasibility studies. The work will explore new engineered wood products, prefabricated dwellings and bio‑based co‑products at scale, with the stated aim of reducing exports of low‑value wood fibre, growing domestic manufacturing capacity, displacing imported engineered wood products and producing higher‑value dwelling components.
An initial, separately funded feasibility study has already begun and forms part of the precinct’s integrated activities. The project is targeted for Portland, Victoria — a logical launch pad given its proximity to Australia’s largest contiguous plantation fibre base, existing manufacturing facilities and the Port of Portland. Backers say the town offers immediate supply chains for pilots and, if the studies stack up, a pathway to full‑scale factories.
Announced by Julie Collins, Australia’s Agriculture, Forestry and Fisheries Minister, as part of a $30 million commitment into 14 separate projects, Collins said, “Together (the new projects) represent an investment of $30 million, with more than $10 million from AFWI and over $20 million contributed by industry and partners. Collectively, this research is strengthening Australia’s forestry future – growing the next generation of researchers whilst delivering innovative solutions to boost productivity, sustainability and climate resilience across the sector.”
Dr Lawrence said the AFWI portfolio is deliberately structured to link research with commercial outcomes across the “forest‑to‑housing” chain. “These projects bring together Australia’s leading researchers, industry partners and collaborators to solve real‑world challenges — from forest health and biosecurity to housing, bioenergy and advanced manufacturing,” he said. “They demonstrate how AFWI is building national capability across the full forest‑to‑housing value chain, in partnership with government, universities, and industry.”
Proponents say it’s a triple win: faster housing supply via prefab, lower embodied carbon from timber, and regional manufacturing jobs and investment. And the payoff is enormous: domestic factories producing Australian-made frames, panels, and modules could capture more value onshore, create skilled regional jobs, and reduce reliance on imported engineered wood. If it works, Australia could shift from exporting raw fibre to building new homes with its own timber stock — at speed, scale and onshore.
- To learn more about Australian Forest and Wood Innovations and its latest round of projects, click here for Wood Central’s special feature from last week.
