THE first round of grants for sawmillers and timber harvesters to re-tool under the Community Forest Agreement were announced yesterday.

Thirteen timber and forestry-based businesses will share in $1.5 million from the first round of $5 million funding from the Tasmanian Forest Industry Development Program and the Tasmanian Country Sawmills Assistance Program.

Tasmanian Liberal Senator Eric Abetz and State Resources Minister Bryan Green announced the funding yesterday at Launceston timber company, Whiteline Timber Products Pty Ltd, which received almost $300,000 for a vacuum drying kiln, driers and moulder to add value to native timber.

The kiln will dramatically shorten timber drying times for the business which sends 95 per cent of its products interstate.

The largest grant of $307,250 went to Launceston-based logging company Buffalo Valley Logging Pty Ltd for new mechanical harvesting equipment to conduct thinning operations in state forests.