The CHEP and NSFP partnership began back in 2020, bringing together two Australian-born companies that promote the importance of domestic manufacturing and sustainable sourcing.
July 29, 2025 – CHEP Australia is pleased to announce further expansion of production capacity in collaboration with one of its key Australian timber suppliers, Neville Smith Forestry Products (“NSFP”). The expansion supports domestic capacity for hardwood milling and pallet production while underscoring CHEP’s commitment to sourcing Australian plantation timber to secure and strengthen the nation’s pallet supply chains.
The CHEP and NSFP partnership began back in 2020, bringing together two Australian-born companies that promote the importance of domestic manufacturing and sustainable sourcing.
Capitalising on Tasmania’s vast plantation hardwood reserves, the collaboration between CHEP and NSFP has enabled NSFP to deliver a $14 million upgrade to its Southwood sawmill in Tasmania’s Huon Valley. This facility is Australia’s largest and most advanced plantation hardwood timber processor, processing up to 100,000 GMT of plantation hardwood logs annually. The upgraded sawmill integrates state-of-the-art technology that efficiently transforms sawlogs into high-quality hardwood pallets for CHEP’s Australian operations.
The upgraded facility has also delivered a significant boost to local employment in the Huon Valley. Since the partnership began, more jobs have been created, necessitating a second shift, while upgrades to the facility and the installation of new equipment have also generated economic opportunities. By investing in advanced manufacturing technology and sustainable hardwood processing, CHEP and NSFP are supporting the circular economy while revitalising local industries with long-term, stable employment.
“In boosting CHEP’s capacity and focus on plantation resources, the partnership supports our 2025 sustainability targets, which include enabling the sustainable growth of two trees for each one used in our operations, and sets a strong foundation for our ongoing ambition to build regenerative supply chains,” said Renee Holbrook, General Manager at CHEP Australia.
“It is a powerful example of how industry collaboration can deliver national impact,” she continued. Together, we’re securing a supply of durable hard-wood pallets for Australian businesses while investing in regenerative supply chains that support local jobs and protect natural resources.”
NSFP: From plantation log to pallet in 30 minutes
“As a leading circular business, CHEP prefers hardwood in the Australian supply chain for its durability throughout a pallet’s lifecycle,” added Andrew Wilson, Director Global Strategic Sourcing at CHEP. “In just half an hour, a plantation log that runs through NSFPs’ mill will exit as a stack of new pallets. These pallets will then serve the Australian supply chain, repeatedly, for up to a decade. Our shared values around reuse and responsible sourcing are contributing to a sustainable, more resilient future for Australian industry.”
“We can now take a certified Plantation Hardwood log and in under 30 minutes transform it into a fully manufactured, painted pallet,” commented Andrew Walker, CEO at NSFP. This seamless process—from cutting the log into pallet components to final assembly—makes NSFP Southwood one of the most efficient facilities of its kind. This investment ensures we maximise the value of our Plantation resources while maintaining a firm commitment to responsible forestry practices.”
With millions of pallets in circulation every day, this partnership ensures that Australia’s supply chain is resilient and environmentally responsible.
See the full overview of CHEP’s pooling systems and sustainability initiatives.
Source: CHEP
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Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
