Wesbeam Timber Supply Transition

Overview

Proposal summary

Western Australia's pine log supply falls from 2033, and the two businesses that process it, Wesbeam and Wespine, both need more than the State can currently allocate. Wesbeam's State Agreement expires on 30 June 2029, the State has indicated that a commercial contract will replace it, and it will advise its intentions in July 2027. How that supply is contracted decides whether Western Australia keeps a competitive timber manufacturing industry, and whether its housing supply depends on imported product.

Lockwood Advisory proposes eight active weeks of work in two four-week periods, either side of the Christmas break. The first establishes an independent view of the market and the supply, the three scenarios and what each means for the State, and the pathway Wesbeam chooses to put forward. The second tests that pathway with the Department of Energy and Economic Diversification and the Forest Products Commission and delivers the action plan for how the State can use its supply contracts to protect timber supply and manufacturing, in Government's hands in early February 2027. Support through the State's consideration and negotiation is available from March at a day rate, as needed.

Period 117 November to 12 December 2026

Period 211 January to 5 February 2027

Fee$15,000 + GST per four-week period

Invoiced12 December 2026 and 5 February 2027

The transition process

Five steps, each tied to a date the State and Wesbeam cannot move.

Step 1 · Nov 2026ResearchIndependent view of the market and the supply, the three scenarios and what each means for the State.Transition Brief by 5 December
Step 2 · Dec 2026PathwayWesbeam's leadership chooses the pathway and the allocation principles to put forward.Pathway agreed by 12 December
Step 3 · Jan 2027TestScenarios and pathway tested in one session with DEED and the Forest Products Commission.Session by 22 January
Step 4 · Feb 2027Action plan to the StateHow the State uses its supply contracts, handed to DEED with a brief for Ministers' offices.Ahead of 2027-28 Budget decisions
Step 5 · Mar to Jul 2027Consideration and negotiationPositions refined, contract terms prepared, Wesbeam's relocation decision readied. Wesbeam-led, with Lockwood support at a day rate as needed.State advises July 2027 · Agreement expires 30 June 2029

Our understanding

One log supply, two businesses, and the State's decision

Based on our meeting with Wesbeam on 3 November 2026 and the public record, including the Wood Processing (Wesbeam) Agreement Act 2002.

The strategic question

How does Western Australia sustain its timber supply and a competitive timber manufacturing industry as pine volumes fall from 2033, and how should the State contract that supply so that Wesbeam and Wespine can both plan, invest and remain commercial?

The two businesses

WesbeamAustralia's only manufacturer of laminated veneer lumber (LVL) and LVL I-joists. Neerabup plant, in production since 2004, just under 300 employees, distribution in five States. Radiata pine and karri, mostly from Forest Products Commission plantations, with hardwood from ecological thinning. Replacement value about $200 million.
WespineWestern Australia's structural pine sawmill at Dardanup, under the Dardanup Pine Log Sawmill Agreement Act 1992. Uses about 500,000 m³ of logs a year. Structural pine is produced in several places in Australia; LVL is not.
ImportsWesbeam advises that 50 to 60% of LVL used nationally is imported, and about 15% in Western Australia.
The StateThe Department of Energy and Economic Diversification administers both State Agreements. The Forest Products Commission owns and supplies the logs. The Forest Management Plan 2024-2033 sets the resource framework; the softwood plantation expansion program will not add harvestable volume for decades.

Log volumes, today and from 2033

Cubic metres a year, as advised by Wesbeam. From 2033 about 400,000 m³ of pine a year is expected to be available to the two processors combined, against about 640,000 m³ used today. Wesbeam's 200,000 m³ is a combination of pine and hardwood.

Key dates

17 November 2026Work startsTransition Brief and pathway agreed before the Christmas break.
13 December to 10 JanuaryChristmas breakNot counted as active time. Work resumes on 11 January.
Early February 2027Action plan with GovernmentIn time for decisions on the 2027-28 State Budget, typically delivered in May.
July 2027State advises its intentionsWesbeam's relocation needs committing by then to operate by mid-2029.
31 December 2027Negotiation backstopClause 25 of the Wesbeam Agreement provides for negotiation of any further agreement to start no later than 18 months before expiry.
30 June 2029Wesbeam Agreement and supply expireTransport compensation of about $6 million a year ends.
2033Pine supply fallsAbout 400,000 m³ a year for both processors combined. The Forest Management Plan 2024-2033 ends.
2044End of a 15-year termThe minimum term Wesbeam needs to invest, if it starts on 1 July 2029.

What Wesbeam has told us, and where it is addressed

TopicWesbeam's positionAddressed in

State Agreement

Expires mid-2029 with no guarantee of a second term. The State will advise in July 2027. The Department of Energy and Economic Diversification has indicated that a commercial contract will replace the Agreement.

Transition BriefAction Plan

Supply and cost

Wesbeam uses about 140,000 m³ a year and needs about 200,000 m³ of pine and hardwood from 2033, on a term of at least 15 years. The end of Gnangara harvesting moved supply to the South West; the State's transport compensation of about $6 million a year ends with the Agreement.

Transition BriefAction Plan

Relocation

Relocating the lathe and dryer closer to the resource would reduce transport cost. It is a two-year process, and Wesbeam holds options over land.

Pathway NoteAction Plan

Wespine

Wespine uses about 500,000 m³ a year and expects access to about 200,000 m³ from 2033. The two businesses have discussed a combined approach, including a log yard that sorts logs to suit each use.

Transition BriefExtension

Mitigation and industry

Importing logs or veneer is a possible mitigation. FIFWA could act as an intermediary but cannot do the commercial and strategy work. AFPA is focused on its anti-dumping campaign.

Transition BriefExtension

Scope and fee

Two periods, four deliverables

Each period closes with a workshop and a deliverable Wesbeam keeps, and is invoiced at its close. Extensions can be added at any point without changing the core.

Period 1 · 17 Nov to 12 Dec 2026$15,000+ GST

The evidence and the pathway

An independent view of the market, the supply and the scenarios, and the pathway Wesbeam chooses to put forward.

Step 1 · ResearchStep 2 · Pathway

D1
Transition BriefOne document: the LVL and structural timber market in Western Australia and nationally; pine and hardwood available to Western Australian processors over the next 20 years, by source; imports; both State Agreements and the State's process for moving to commercial contracts; the three scenarios (both businesses continue with allocated supply, imports fill the gap, one business ceases) tested on supply, viability, competition, housing, jobs and cost to the State; and what Western Australia gains or loses under each, set against Made in WA, advanced manufacturing and housing commitments.Transition Brief, about 25 pages with charts and maps
S1
Leadership workshopA half-day workshop with Wesbeam's leadership on the Brief: strategy, volumes, costs, the relocation and the combined approach with Wespine, closing with the choice of pathway. Preceded by one conversation each with Wespine's Chief Executive, the Department of Energy and Economic Diversification and the Forest Products Commission to scope their positions.Workshop, prepared and facilitated
D2
Pathway NoteTwo pages: the pathway Wesbeam puts forward, the principles for allocating supply between the two businesses, Wesbeam's commitments in return (volume, term, investment, relocation, employment), and the decision makers to be engaged.Pathway Note

ClosesPathway agreed by 12 December. Christmas break.

Period 2 · 11 Jan to 5 Feb 2027$15,000+ GST

The test and the action plan

The pathway tested with the State, and the action plan in Government's hands.

Step 3 · TestStep 4 · Action plan

S2
Testing session with the StateOne session with the Department of Energy and Economic Diversification and the Forest Products Commission on the scenarios, the trade-offs and the pathway, with each party's position recorded and the pathway revised where needed.Session, prepared and facilitated, with record
D3
State Action PlanThe document for Government: how the State can use its supply contracts with the two businesses to protect timber supply and keep manufacturing in Western Australia; volumes and allocation, term, price and transport basis, investment conditions, review points and timing; Wesbeam's commitments inside it; and the roadmap of decisions and owners from February 2027 to 30 June 2029, connected to the 2027-28 Budget and the State's priorities.State Action Plan, about 15 pages
D4
Ministerial brief and handoverA two-page brief for Ministers' offices drawn from the Action Plan, and a meeting with the Department of Energy and Economic Diversification to hand the plan over, prepared, attended and followed up.Brief and meeting record

ClosesAction Plan with Government by 5 February 2027.

Extensions

Added only if Wesbeam wants them. Each is priced on the same basis as the core.

Extension

Wespine strategy and joint approach

A full strategy assessment of Wespine and a framework for a joint or aligned approach to the State, including the shared log yard. Two further sessions with Wespine.

Fee$6,000

Extension

Industry and national market testing

The scenarios tested with FIFWA, AFPA and national market contacts, and the Brief updated with their positions.

Fee$6,000

Extension

Further Government meetings

Additional meetings with Ministers' offices or agencies in February, each prepared, attended and followed up.

Per meeting$3,000

From March 2027

Consideration and negotiation support

Meetings as the State considers the plan, preparation for contract negotiations with the Forest Products Commission, and updates to the plan as positions develop.

As used$4,000 a day

Delivery allowance

The leadership workshop in Period 1 and the testing session in Period 2.
Three scoping conversations in Period 1 (Wespine, DEED and the Forest Products Commission) and one handover meeting in Period 2.
One round of revisions on each deliverable.

From Wesbeam

One nominated contact for the engagement.
The State Agreement, the production contract and recent correspondence with the State and the Forest Products Commission.
Log intake, species mix, transport cost and plant production data.
Land options, relocation work to date and notes of discussions with Wespine, with an introduction to Wespine's Chief Executive.
Leadership available for the workshop session in the week of 8 December.

Scope boundaries

Legal advice on the State Agreements or supply contracts, engineering and site due diligence, and detailed financial modelling of either business are not included.
The Brief and the scenarios are prepared as an independent view and shared with the State and Wespine as participants. Lockwood Advisory does not act for Wespine.
Work beyond the agreed scope requires separate written agreement. Government decisions, supply volumes and contract terms are not guaranteed.

Period 1 · 17 Nov to 12 Dec$15,000+ GST

Period 2 · 11 Jan to 5 Feb$15,000+ GST

Eight active weeks$30,000+ GST

All fees exclude GST. Each period is invoiced at its close: 12 December 2026 and 5 February 2027. Payment terms are confirmed in the engagement agreement. Extensions are invoiced with the period in which they are delivered; day-rate support from March is invoiced monthly as used.

The engagement is commissioned by Wesbeam. Where Wesbeam and Wespine agree to share the cost of the Brief, or the State wishes to commission it, the fee and scope are adjusted by agreement.

Dates are agreed at commencement. The Christmas break, 13 December to 10 January, is not counted as active time.

How we work

How the work is done

One process from independent research to an action plan the State can adopt, against dates set by the State Agreements and the State's decision cycle. It draws on the mapping, positioning and engagement tools of Lockwood Advisory's Systems Shift Method, applied to a single industry question with a fixed deadline.

Scenario analysis · in the Transition Brief

Three scenarios, one set of tests

Each scenario is tested on the same criteria with input from Wesbeam and the State, so the pathway rests on evidence and the trade-offs are visible before anything is put to Ministers.

ABoth businesses continue, with supply allocated between them
BOne or both businesses use imported logs or product to fill the gap
COne business ceases and the other takes its place, with the loss of competition that follows
+Variants: Wesbeam relocates the lathe and dryer; a shared log yard sends each log to its best use; Wespine focuses on the WA market

Assessed against

·Continuity of timber supply to Western Australian builders
·Commercial viability of each business, and the investment each can commit
·Competition in the Western Australian market
·Jobs, regional spend and import dependence
·Cost and risk to the State, and fit with Made in WA, advanced manufacturing and housing supply

Platform

Resource research platform

Gathers public records on the Western Australian log resource and the national market: Forest Products Commission reports, the Forest Management Plan 2024-2033, plantation programs, Parliamentary and Budget papers, trade data and industry reporting. Every finding is checked against its source before it is reported.

Transition Brief

Platform

Relationship mapping platform

Connects Ministers, agencies, the Forest Products Commission, the two businesses and industry bodies in one visual map, showing who decides what and where each relationship sits.

Pathway NoteAction Plan

Platform

Market signal platform

Tracks how Government, industry and the media describe timber supply, housing and local manufacturing, so the Action Plan speaks to the issues decision makers are already responding to.

Transition BriefMinisterial brief

Wesbeam receives every deliverable in usable, editable formats, with the research behind it. Material shared with the State and Wespine is agreed with Wesbeam before release. The platforms and tools remain with Lockwood Advisory, and no software licence, hosted platform or subscription is included.

Next steps

To proceed

Confirm the scope and the 17 November start.
Nominate Wesbeam's contact, and confirm how the work will be introduced to Wespine and the State.
Share the starting information: the State Agreement and production contract, recent correspondence with the State, log and transport data, and relocation work to date.
Hold the week of 8 December for the leadership workshop.

Decision requested

Approve Timber Supply Transition at $15,000 + GST per four-week period ($30,000 + GST over eight active weeks), nominate Wesbeam's contact and confirm the start date. Extensions can be added at any point.