In recognition of the importance of forestry to the economy, Highlands and Islands Enterprise (HIE) has confirmed a further two years' support to the Highlands & Islands Forest Industry Cluster (HIFIC).

The Cluster aims to increase co-operation within the forest industry and look for innovation to improve efficiency. Established in 2005, the cluster has delivered 15 events throughout the region with over 550 attendees from the sector.

Forestry is an important sector of the Highlands and Islands' economy and covers a diverse range of businesses - from one person contractors to multi-national timber processing operations.

As well as supplying the traditional users of timber the industry is becoming increasingly focused on supplying sustainable energy in the form of wood fuel.


Colin Grant, senior development manager within HIE's Energy team said: "HIFIC has provided a valuable service to the forest industries in the region over the last three years and there is a strong desire within the sector for activity to continue along similar lines. HIE is delighted to support such a successful initiative in the area."

The next HIFIC event will take place on Wednesday, 10 December 2008 in Dingwall Auction Mart. Keynote speaker is Hugh Insley, Chief Executive of Forest Enterprise, who will give his views on what the industry needs to do to survive the current financial crisis, which has seen a massive decline in the demand for timber. Other speakers will outline how the industry has benefited from the Scottish Timber Transport Fund, and how forestry fits into the diverse business of Rothiemurchus Estate.

Chair of HIFIC, Steve Conolly said: "The creation of the cluster three years ago was an important development for an industry that is very dispersed throughout the region and one which has seen a rapid change as a result of the current economic climate. It is great news that HIE has committed a further two years' funding for us to continue the activity in what are likely to be very difficult times ahead."

(GK/JM)