A forestry union fighting to keep more than 250 timber mill jobs says the decision to close a regional Victorian mill and move to Tasmania is premature.
Australian Sustainable Hardwoods announced on Wednesday it would begin shutting its Heyfield mill in August, ahead of its original September closure date.
But CFMEU Forestry national president Jane Calvert said the state government and the company were still negotiating.
"We believe the company's statement to be premature," she told AAP.
It's understood Premier Daniel Andrews' government offered more than $20 million to buy the mill - which the company says falls far short of its true value.
"No fair commercial offer has been forthcoming from the Andrews government and any suggestions that there has been any form of intense discussions or negotiations of any form with the government are simply wrong," the ASH statement says.
"Government were neither serious about making a genuine offer for the mill, nor were they ever serious about addressing either the supply level and contract tenure needed to operate this profitable high class facility."
ASH also said VicForests had not delivered on its promised log supply and had suffered significant harvesting losses due to exclusion zones for the Leadbeater's possum.
"VicForests will have now failed to meet its contractual timber supply arrangements for four out of the last five years," the company said.
ASH management said they had looked at "all options to keep the mill open".
But the state government says the job losses were "unnecessary and avoidable".
"The Andrews Labor government has provided a fair and reasonable offer... this offer remains on the table," a state government spokesman told AAP.
It is understood the business has about $50 million in stock, is owed $10 million from debtors, and has assets including land, buildings, and machinery.
The owners say they will continue talks with Tasmania's government to send the mill to Burnie.
"I have had positive discussions with the company in recent weeks and I look forward to discussing this exciting project further with them," Tasmanian Resources Minister Guy Barnett said
ASH chairman Ron Goldschlager praised the CFMEU, the Greens and the Nationals for trying to work to keep the mill open.
Opposition Leader Matthew Guy said the state government had failed to save thousands of jobs in Gippsland with "no remorse for their failure to step in and save them".
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