Gundaline was sold to Ausuntech Pty Ltd in 2023. Photo: LAWD

THE COMPANY behind the Carrathool aggregation Gundaline, Ausuntech Pty Ltd, has been awarded $10 million to help build Australia’s first large-scale hemp-processing plant for linen-quality fibre production.

The facility, which is currently awaiting New South Wales Government planning approvals, will be supported by new plant, power upgrades and specialised equipment.

The project is expected to create local jobs, support regional growers’ access to value‑added markets, and deliver environmental benefits through low‑water and low‑emissions production.

The 14,916ha Gundaline Station was purchased by Chinese firm Zhejiang Sunrise Garment Group from Optifarm for circa $120M in 2023.

The operation primarily grows irrigated cotton, as well as soybeans, wheat, canola, and faba beans.

The grant to Ausuntech is part of 14 projects worth $69M under round two of the Sustainable Communities Program, funded by the Federal Government and delivered by the NSW Government.

Murray Industrial Hemp, located at Barham, was also awarded $10M to establish a hemp processing and manufacturing facility to produce low‑carbon hempcrete blocks for sustainable housing.

It has been promoted as a means of strengthening local supply chains and improving the energy efficiency of homes.

NSW Minister for Agriculture and Regional NSW Tara Moriarty said these grants would support value-adding agricultural produce in Murray Darling communities.

“These investments are about backing local businesses, supporting regional jobs and building stronger, more sustainable communities for the future,” Ms Moriarty said.

“This funding will help businesses increase productivity, diversify their operations, expand into new markets and invest in innovative projects that strengthen their long-term competitiveness and resilience.

“While the NSW Government remains opposed to water buybacks, we are committed to ensuring regional communities are well placed to seize every opportunity for economic growth and prosperity.”

Federal Minister for the Environment and Water Murray Watt said the Federal Government was “backing communities in the southern Murray-Darling Basin with targeted investment to create jobs, stimulate growth, and strengthen long-term resilience”.

“The science tells us that we need to recover water to secure the long-term environmental health of the Murray-Darling Basin and the jobs and communities that rely on it,” Mr Watt said.

“In delivering a healthy river system, we need to support communities to adjust, which is why we’ve committed a record $300 million in funding to help minimise social and economic impacts of water recovery, including $160 million for Basin communities in NSW.”

An artist’s impression of the Gundaline project viewed from above. Source: SKM Planning via NSW Planning Portal

Project under consideration

Ausuntech has lodged plans for the facility with the NSW Government planning portal and is awaiting final approvals.

The project has completed community consultation, and its public exhibition closed in March.

The proposal also includes the construction of a workers’ accommodation and administrative building.

The plans, prepared by SKM Planning, include the construction and operation of facility to process 20,000 tonnes of raw hemp a year, producing 4000t of hemp fibre.

“All of the hemp would be grown on the Gundaline farm holding, which is over 15,000 hectares in area,” the documents said.

“The section of the site designated for the hemp-processing plant has historically served as a paddock for sheep grazing and is free of native vegetation.”

According to the plans, Gundaline already produces hemp “to provide a more sustainable fibre to produce clothes”.

“The hemp-processing plant would produce hemp fibres, which would be baled and sent to China to produce raw materials for the production of clothing.

“The spinning and weaving process would be carried out overseas.”

Boost for Barham

Murray Industrial Hemp (MIH) executive director Leigh Fletcher said it was wonderful news for the community.

He said the company would use the government funding, along with investments from local and national shareholders, to build industrial hemp-processing and block-manufacturing facilities in Barham.

“The industrial hemp industry is really taking off across Australia,” Mr Fletcher said.

“Builders and architects see the benefits of hemp – its thermal properties, fire resistance, its environmental sustainability, energy efficiencies.”

“For our area, the opportunity is enormous.

“We’re aiming to create a new industry where the product is grown, processed and manufactured right here.

“Irrigators can grow hemp – a different, water-efficient crop – and our wider community will benefit from the jobs and economic input from a new manufacturing industry.

“We are so pleased that the NSW Government has seen these opportunities and is willing to back our project.”

Mr Fletcher thanked seed investors and other local supporters for being part of the project.

“We couldn’t have come this far without our seed investors, including the many local families who have invested.

“We’ve also had great support from local and regional businesses as we have set up governance and business structures.”

Mr Fletcher also acknowledged Western Murray Land Improvement Group, which “kickstarted” the project, and remains a major shareholder.

MIH plans to redevelop land on Moulamein Road, once home to a redgum sawmill.

The project will include the installation of hemp decortication equipment to process baled hemp into hurd, fibre and fines, as well as a a hemp brick manufacturing line.

MIH will now work with Murray River Council on planning requirements.

MIH was formed in 2024, building on work that began in 2021 when the Western Murray Land Improvement Group sought to unite farmers to explore new industries.

Since then, trial crops have been grown, business case completed, shareholders have invested and a company board established.

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