In a crucial boost for jobs- challenged Circular Head and the wider North-West economy, Tasmanian Dairy Products Co Ltd yesterday announced the Murray Goulburn cooperative had made a "significant" equity investment in the company to allow a powdered milk plant to be built.
The companies told about 180 Circular Head community leaders and farmers it would be at the Gunns Ltd sawmill site, which has been on the market for some time. The project value will be up to $70 million.
More importantly, for an area which has been hit hard by forestry's struggles, the project is expected to provide 75 ongoing jobs and about 150 during construction.
"Tasmania has got about 700million litres of milk a year now and these guys are going to want about 220 million litres."The indications are Tasmania will go to a billion litres.
"Woolnorth is looking at major development and it's been estimated by the government, because MIS (managed investment) schemes have fallen over, some plantation timber land will go back into grassland and other patches of land will be developed for dairy."
Joy was not too strong a word to describe the local reaction, he said.
He said Circular Head would be well catered for and would need an influx of people, especially if the Shree iron ore mine went ahead.
Cr Quilliam said it was expected the site would be secured by the end of the week and construction would start while Gunns was still using some of the site for drying timber.
Tasmanian Dairy Products CEO Gregg Pollack said finalising Murray Goulburn as the key investor meant construction would start soon.
It was expected to take about a year.
The State Liberals also welcomed the development, describing it as "a welcome reprieve for the region that had been hit hard by recent business closures and job losses as a result of the financial ineptitude of the State Government".
