Prefab Timber Factories? Project Bets on MMC to Fast‑Track Aussie Housing

Minister Julie Collins announces $30 million and AFWI backing for 14 projects, including an advanced manufacturing precinct to scale timber‑led MMC and ease the housing shortfall.


Tue 21 Oct 25

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Australia is developing a new advanced manufacturing precinct strategy, which once finalised, will allow it to accelerate prefabricated timber housing at scale, with the new project one of 14 funded under the latest round of the Australian Forest and Wood Innovations (AFWI) program.

Announced before 400 forestry professionals, scientists, land managers and policymakers at the Forestry Australia’s conference in Adelaide, Julie Collins, Australia’s Minister for Agriculture, Fisheries and Forestry, said projects “range from developing a national biosecurity program for giant pine scale, to an indigenous led cultural timber recovery project in the Northern Rivers, through to an advanced manufacturing precinct strategy to accelerate prefabricated timber housing.”

“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,” Minister Collins said. “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.”

Established last year, AFWI is a $100m+ research institute – to be co-matched by industry partners – and is a key pillar in the Albanese government’s push to grow the country’s $28 billion forest and wood industry, with AFWI working with over 20 research partners, including the University of Tasmania, University of Melbourne and University of Sunshine Coast on a range of projects with industry and stakeholders nationwide.

“From house frames, to farm gates, to furniture in a homes and offices to the cardboard products we use every day it’s clear that the forestry sector is at the heart of everything that we do,” the Minister said. “The Albanese government is interested in growing plantatinos, modernising infrastructure, investing in research and development, tackling illegal timber at the port and upskilling the workforce.”

Australian Forest and Wood Innovations (AFWI), hosted by the University of Tasmania, announced eight research projects that will be funded through its inaugural $5 million National Open Call for Research. This marks the first research funded through the Albanese Government’s $100 million commitment for AFWI. (Photo Credit: AFWI)
Last year, the Australian Forest and Wood Innovations (AFWI) announced eight research projects that will be funded through its inaugural National Open Call for Research. It marked the first research funded through the Albanese Government’s $100 million commitment for AFWI. Here, Minister Collins (left) visited the University of Tasmania with Dr Louise Wallis (centre). (Photo Credit: AFWI)

AFWI Executive Director Dr Joseph Lawrence said the investments represent a strong pipeline of research aligned to national priorities: “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,” Dr Lawrence said. “They demonstrate how AFWI is building national capability across the full forest-to-housing value chain, in partnership with government, universities, and industry.”

AFWI Research Centres Projects:
  • Risk models for pine pests under future climates using empirical data
  • Productive and Climate Resilient Eucalypt Germplasm for Indigenous Forestry in Northern Australia
  • Fibre to Fuels: Linking Australia’s Sustainable Forestry and Renewable Energy Sectors
  • Bio-based construction systems for small-footprint dwellings and multifunctional outbuildings
  • Mapping silvopastoral supply chains in Australia: Identifying opportunities, barriers and future research
  • SilvaNaut: Incorporating Autonomous Operation into Australian Forest Machinery – Robotic Weed Control Conditions
  • Sustainable management of plantation forest pests under changing climates (Part 1)
AFWI National Open Call (Round 2) Projects:
  • Bundjalung Cultural Timber Project
  • Innovative Bio-Processing for Treated Timber Waste: Advancing the Timber Industry Circular Bioeconomy
  • Automated Design for Prefabrication in Timber Construction
  • Developing Genomic Infrastructure for Australian Forest Tree Breeding and Research Applications
  • Advanced Manufacturing Innovation Strategy and Feasibility to Catalyse Large-Scale Prefabricated Dwelling Adoption
  • Activated Carbon, Biochar and Beyond: Valorisation Pathways for Hardwood Forest Waste
  • Developing a Sustainable, Long-Term Management Program for Giant Pine Scale in Australia

For more information from Forestry Australia’s four day conference, including a keynote presentation from Radha Kuppalli, board director of Greening Australia and Accounting for Nature and a member of the Australian Government’s Nature Finance Council, click here for Wood Central’s special coverage.

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    Jason Ross, publisher, is a 15-year professional in building and construction, connecting with more than 400 specifiers. A Gottstein Fellowship recipient, he is passionate about growing the market for wood-based information. Jason is Wood Central's in-house emcee and is available for corporate host and MC services.

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