Timber processor Ta Ann is closing its Huon Valley veneer mill.
The Lonnavale plant was devastated by bushfires in 2019, and the Malaysian-controlled company has made the decision to consolidate all operations to Smithton.
Huon employees will be offered relocation to the northwest.
Ta Ann Tasmania GM Robert Yong says bushfire damage as well as reduced log volumes and the impact of the pandemic have affected suppliers and markets for its veneer product.
The company is now working with the state-owned logger STT to find options for ongoing wood manufacturing at Lonnavale.
More details regarding availability of the Huon site infrastructure and sustainable log supplies for businesses wishing to continue wood manufacturing on the Southwood site will be provided in the near future.
Ta Ann's mills have long been a target of forestry protests, including this action at Smithton in 2011 (AAP Image/Code Green Tas).