The Victorian government wants to use prefab timber to close its housing gap, with Ros Spence, a cabinet minister in the Allan government, backing prefabrication to deliver “faster construction, reduced waste and more affordable housing.” It comes as Minister Spence, Victoria’s Minister for Agriculture, committed $1.25 million to THE PRECINCT — a multi‑year, multi‑phase feasibility project using modern methods of construction and the Green Triangle’s abundant plantation fibre to short‑circuit the housing crisis.
“The Allan Government has a proud history of investing in forestry and plantation resources and driving innovation with more than $190 million invested since 2017,” Spence told stakeholders in the Green Triangle. “I also thank the Albanese government for their support of this project, and their recent announcement to establish a $300 million Growth Fund for Forestry.”
That support builds on more than $1.7 million already committed by the Albanese Government, meaning that the Federal and State Governments have combined to send $2.95 million to back the development of Australia’s largest plantation hardwood and softwood processing facility in Portland – in the heart of the Green Triangle, with industry, researchers, Traditional Owners and government uniting to turn homegrown timber into high‑value products such as glue laminated timber, laminated veneer lumber and prefab housing modules.
Julie Collins, the Federal Minister for Agriculture, Forestry and Fisheries, said the project would transform the way timber is used in prefab housing. “By investing in advanced timber processing facilities, we’re not just building infrastructure — we’re reshaping the industry. It’s a win for jobs, innovation, and sustainability.”
Wood Central understands the new facility is expected to create up to 200 regional jobs and reduce Victoria’s reliance on imported engineered wood products. Senator Raff Ciccone described the project as “a great step towards making more of our timber products here in Australia, supporting local jobs and boosting Wannon’s manufacturing future.”
According to Jaclyn Symes, Victoria’s Minister for Regional Development, the precinct will strengthen the local economy. “This is another way we are removing barriers and supporting long‑term growth in Portland.” While Colin Brooks, the Minister for Industry and Advanced Manufacturing, added, “We’re proud to back this precinct — boosting local timber manufacturing to drive new jobs in regional Victoria and strengthen our advanced manufacturing capability.”
Officially known as the “Advanced Manufacturing Innovation Strategy and Feasibility to Catalyse Large‑Scale Prefabricated Dwelling Adoption,” the AFWI-supported project is being delivered by IndustryEdge and already counts more than $7 million in contributions from the Federal and State Governments, industry and research partners.
“AFWI is proud to enable THE PRECINCT to turn plantation fibre into high-value engineered timber for prefab housing,” said Dr Joseph Lawrence, the executive director of AFWI – Australia’s National Research Institute for Forest & Wood Products, which will help boost supply and strengthen Australia’s sovereign manufacturing capacity.
The project brings together several industry, research, and government partners — including the Green Triangle Forest Industries Hub, the FWPA, the Victorian Forest Products Association, several programs of the Department of Agriculture, Fisheries & Forestry, local government agencies and the individual companies — to run integrated feasibility studies.
These will explore new engineered wood products, prefabricated dwellings, and bio‑based co‑products at scale, with the aim of:
- Reducing exports of low‑value wood fibre
- Growing domestic manufacturing capacity
- Displacing imported engineered wood products
- Producing higher‑value dwelling components
An initial feasibility study has already begun, with Portland, Victoria, identified as the launch pad thanks to 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 pilot projects and, if successful, a pathway to full‑scale factories.
Supporters argue it’s a triple win: faster housing supply via prefab, lower embodied carbon from timber, and regional manufacturing jobs and investment…and the payoff could be enormous — domestic factories producing Australian‑made frames, panels, and modules would capture more value onshore, create skilled regional jobs, and reduce reliance on imports. If successful, Australia could shift from exporting raw fibre to building new homes with its own timber — at speed, scale, and onshore.
- To learn more about THE PRECINCT, click here for Wood Central’s exclusive interview with Tim Woods, Managing Director of IndustryEdge, in late October.
