Lyons MP Brian Mitchell and Senator Murray Watt announce more than $100 million in grants

However, the Bob Brown Foundation has claimed the funding was "a rort".

Mr Watt this week said the funding, granted under the federal government's $108 million Accelerate Adoption of Wood Processing Innovation grant program, would promote long-term jobs in the industry.

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"Our government understands how important the forestry industry is for communities around the country, but particularly here in Tasmania," he said.

"These grants are about creating more long-term jobs in the forestry sector."

The program offers grants between $1 million and $5 million to forestry companies who are upgrading their existing manufacturing lines and diversifying their product offerings.

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The 34 successful projects were announced at the West Junction Sawmill on April 20.

Mr Mitchell said the program would ensure the industry remained competitive and he was pleased to see five Tasmanian companies selected by the independent panel.

"Enabling wood processing facilities to use innovative technologies in their production will enhance the forestry industry's ability to supply more of Australia's wood demands into the future," Mr Mitchell said.

"Here in Tasmania that includes projects that improve production processes, and value-add to existing operations."

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Jenny Weber, campaigns manager for the Bob Brown Foundation said the money would be better spent on preserving and regenerating existing woodlands.

"What a rort - more millions of taxpayers' money has been handed to the taxpayer-funded, job-shedding logging industry," she said.

"This comes after Australia's native forest logging industry has been taxpayer-funded with more than $1 billion over many decades of destroyed forests."

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