Many in the Rose City will know the site as D&R Henderson. It was acquired by Forest One in early 2024.
A current employee, who asked to remain anonymous, said staff were told that there would be 140 redundancies at the Benalla site in the coming weeks.
The company has since confirmed that it will cease manufacturing operations of its dry sawmill and particleboard operations in Benalla.
It cited increased costs, specifically around state government compliance, as the driver of the decision.
State Member for Euroa Annabelle Cleeland said it was absolutely devastating to hear that ForestOne Manufacturing would be ceasing its sawmill and particleboard operations in Benalla.
“This decision is placing hundreds of local jobs at risk,” she said.
“Over recent weeks, I’ve met with local businesses across our region who are battling to stay afloat in an increasingly hostile environment for Victorian industry.
“The closure of ForestOne is a heartbreaking example of these pressures in action.
“Small and medium-sized businesses are the backbone of our local economy. They need a government that listens, lowers costs and gives them a fair go.
“I will continue to fight for the people of Benalla and for every worker affected by this decision.
“They deserve certainty, support.”
The Victorian Government has been contacted for comment.
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