Splinters to Structures

Unlocking new high value application for its plantation grown blue gum.

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The Green Triangle has unlocked new high value application for its plantation grown bluegum (Eucalyptus globulus) redefining the timber product market through the Splinters to Structures project.

The national initiative, funded by the Commonwealth Government’s Agricultural Trade and Market Access Cooperation (ATMAC) program and led by the Green Triangle Forest Industries Hub (GTFIH) in conjunction with Forest and Wood Products Australia (FWPA) has created a new engineered wood product.

The Glue Laminated Timber product, passing certification at GL18 and GL21, making it comparable in strength to steel, ready for use in the construction sector forming the foundation of a vibrant value-added, sustainably focused industry, supporting local jobs and further market innovation.

The landmark project has also proven the capability of establishing a local manufacturing base for high performance LVL, utilising both hardwood and softwood resource, providing another avenue to support domestic construction demand for sustainable timber products.

This breakthrough gives industry and investors the opportunity to:

Add significant value to underutilised resource
Diversify income streams with a new domestic manufacturing base
Strengthen Australia’s supply of locally made engineered timber, reducing reliance on imports.
Serve both domestic and export markets, anchoring a new regional industry.

Background

In 2021 during the midst of the pandemic, demand from China for both bluegum wood chip and softwood pulp log stalled, leaving plantation growers with a stranded resource with no domestic market.

Australia lacked processing infrastructure to turn either log species into high value products to support growing national demand for structural resource sparked by housing stimulus programs, supply chain disruptions and global market volatility. During his period, detached housing approvals soared placing enormous pressure on supply chains, particularly structural timber like LVL and GLT.

Australia imports between 80 to 100 per cent of its LVL needs, particularly higher strength grades. The closure of native hardwood harvesting in Victoria and other states further restricted domestic access to high grade GLT (GL18+) exacerbating the shortage.

These events spawned a clear opportunity to investigate how to utilise plantation hardwood log and softwood pulp log in a new product, helping meet market demand, reduce import dependency and establish new value-added markets for both growers and processers, with the option of new export potential.

The opportunity

Australia’s demand for EWPs is dominated by LVL – GLT is a complementary and specialist product. Demand is consistent, growing and peaks significantly above domestic production capacity during periods of heightened dwelling demand.
In 2023-25 Australia’s LVL consumption was about 280,000 m3 with GLT consumption as high as 79,000.
Australia’s LVL production is about half the annual minimum demand. This demand cannot be entirely supplied by local production, even when at cyclical lows.
Australia’s GLT Market size is 69,000 – 79,000 m3 – local production is 56,000 m3 with softwood making up 75% of total supply.
GLT imports 23,000 m3 with important replacement opportunity for Indonesian hardwood supply.
Australia’s GLT market has sufficient production capacity to meet minimum demand levels. However, insufficient fibre, particularly of the right species, makes it challenging to meet, particularly higher strength GLT18+.
Almost all of this higher strength product is manufactured from native hardwood resource, no longer readily in supply due to cessation of native timber harvesting.
Engineered wood products can act as a substitute in the built environment for steel or concrete, providing a greener, cleaner, carbon storing construction outcome.

The research

The multi-phase research and develop program stretched from 2022 to 2025, exploring how to best utilise the resource, identifying where to meet market demand and realise export opportunities and understand the capability of the fibre.

The cross-industry collaboration, led by a team of forestry researchers and supported by leading industry analysts took more than 180 plantation logs (120 bluegum and 60 radiata pine) and transformed them into promising EWP prototypes – Laminated Veneer Lumbar (LVL) and Glue Laminated Timber (GLT) for use in real world applications.

The product was processed at the QDAF Salisbury Research Facility with two thirds rotary peeled into veneers for LVL trials with veneer sheets graded and analysed for suitability in structural applications.

The bluegum veneers demonstrated high MOE values, critical performance metric indicating stiffness and load bearing capacity. This high rating makes bluegum particularly well-suited to structural LVL applications where strength is important. Veneers from both bluegum and radiata pine were visually graded as D grade, the lowest visual category meaning they are not suited for exposed applications but are acceptable for internal structural use.

The project successfully manufactured GL 18 and GL 21 exclusively from bluegum with the trial showing potential to produce product at higher strength grades. The bluegum demonstrated high modulus of elasticity (MOE) showing the bluegum was ideal for structural LVL application. A total of five LVL product types were identified for further development, ideally for use in internal framing, bracing, floor joists and other structural applications where visual appeal is secondary to performance.

The veneers from bluegum showed high stiffness values proving their suitability in structural LVL applications. Veneers from both bluegum and radiata pine pulp log were classified D Grade, the lowest visual quality, making them unsuitable for appearance grade products meaning they are more suited for hidden/internal structural applications.

What is GLT?

Glue Laminated Timber, commonly known as glulam or GLT, is a high-performance engineered wood product made by bonding layers of timber lamella strips or blocks together with durable adhesive.

This results in a structural beam or column which is stronger and more stable and versatile than traditional sawn timber products.

Applications

GLT is used across a variety of construction applications including:
Structural beams and columns for residential, commercial and public buildings
Roof trusses and floor systems
Decorative exposed timber in architectural designs

Benefits of GLT

GLT provides superior strength and stability, engineered to handle high loads and long spans. It is available in high strength grades like GL18 and GL21, which can be utilised as a replacement for steel or concrete.
The product is resistant to warping, twisting and splitting.
The product provides design flexibility, custom manufactured to length, curve or shape. It allows for open space and exposed timber aesthetics. It is ideal for offsite pre-fabrication, allowing faster, cleaner construction on building sites.
The product helps reduce reliance on imported timber products, encouraging regional job creation through domestic manufacturing.

Growing GLT demand

Australia’s structural Engineered Wood Product market is growing with GLT use increasing in homes, public infrastructure and mid-rise buildings.

High strength GLT (GL18+) is currently under supplied due to the closure of native forest harvesting in Victoria.

The product has growing export potential with certified Australian-made GLT in demand international markets such as Japan, South Korea and Singapore.

What is LVL?

Laminated Veneer Lumber (LVL) is a high-strength engineered wood product made by bonding thin wood veneers together under heat and pressure, with the grain of each layer aligned in the same direction. The result is a strong, dimensionally stable and lightweight structural material, offering superior strength-to-weight ratios compared to solid timber.

LVL is widely used in residential, commercial and industrial construction due to its strength, reliability and sustainability. Common uses include:

Structural framing: floor joists, roof rafters, lintels, wall studs, and beams
Formwork and scaffolding systems
Truss and panel systems in prefabricated construction
Long-span and load-bearing applications where high strength is required with minimal weight.

LVL is an increasingly popular alternative to traditional solid timber and steel due to its performance, consistency, and efficient use. There is currently limited domestic manufacturing, with half of Australia’s domestic-use reliant on imported product. Its use has grown with the rise of prefabrication, sustainable construction practices, and demand for efficient, engineered timber solutions.

A groundbreaking trial under the ATMAC Splinters to Structures program has confirmed the commercial and technical feasibility of producing high-strength Glue Laminated Timber (GLT) from 100% plantation-grown hardwood in Australia.

Key Findings:

Australian First: Plantation Eucalyptus globulus was successfully processed into certified GL18+ hardwood GLT beams, now approved to Australian Standards.
Commercial Viability: A commercial model based on 5,000 m³ annual production showed a 13% gross margin, with strong potential for improved returns through process optimisation.
Sustainability Focus: The trial demonstrated a scalable use of domestic plantation resources as a viable alternative to imported timber products, supporting Australia’s sovereign manufacturing goals.
Real-World Applications: Beams have been installed in residential and commercial builds Australia-wide, showcasing product quality and market readiness.
Future Potential: The project highlighted the possibility of developing integrated processing facilities to commercialise the product prototype. A Victorian State Government-backed feasibility study is now underway to further develop a Hardwood Timber Manufacturing Hub in the Green Triangle. https://www.hwhub.com.au/

This trial marks a major step forward in realising a future-focused, locally sourced engineered timber industry in Australia.

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