The abrupt shutdown of a sawmill in southeastern Victoria has left 73 employees jobless and sent shockwaves through the local community.

Workers at the Associated Kiln Driers (AKD) sawmill in Yarram, Gippsland, were informed yesterday that the facility would be closing, delivering the devastating news just weeks before the Christmas season.

AKD, known as the nation’s largest softwood producer, employs around 1,000 people across Australia.

However, the Yarram sawmill has faced significant challenges due to a downturn in the construction industry and rising operational expenses, according to the company’s CEO, Shane Vicary.

“To ensure we remain a viable and competitive Australian business, we are adjusting to market conditions by streamlining our operations and reinforcing the core business at our four main sawmilling sites, which continue to deliver a comprehensive range of structural softwood products,” Vicary explained.

“Having operated in regional communities for 70 years, the significance of our departure from Yarram is not lost on us.

“We understand how important our operations have been to the fabric of this region and we are committed to working with local stakeholders in Gippsland to reduce the impact of the closure where reasonably possible.”

Local MP Danny O’Brien said the sudden news of the closure was a devastating blow for the community, which had a jobless rate above the state average.

“Seventy-three jobs lost in a town the size of Yarram is enormous,” he told radio station TRFM.

“These are local families, local businesses and a whole community that will feel the impact of this closure immediately.

In a social media post, the Timber, Furnishing and Textiles Union said it was lobbying other timber mills to take some of the impacted workers who lost their jobs at Yarram.