Dozens of logging trucks are expected to be parked in front of Victoria's parliament ahead of a union-led protest about the closure of the Heyfield hardwood mill.

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Forestry union, the CFMEU, says about 50 semi-trailers from Gippsland will be parked outside parliament early on Tuesday before the truckies join Heyfield workers and supporters for an 11am protest outside Trades Hall.

The owners of Australia's largest hardwood mill announced on Friday the site would close in 2018 after they rejected an offer by the Victorian government to supply it with sawlogs.

Australian Sustainable Hardwood CEO Vince Hurley said it needed 130,000 cubic metres of saw logs each year but was offered just 200,000 over three years along with a $4.7 million operational subsidy.

About 250 people will lose their jobs when the mill closes in September next year. Source: Sunrise

Government-owned VicForests harvests the timber for ASH and says the supply offer was "at a level we believe can be sustainably produced" while also considering existing contracts with other customers.

"We share the concerns that have been raised over potential impact on jobs and the town of Heyfield as a result of the reduction in timber available to the mill," VicForests acting chief executive Nathan Trushell said on Friday.

The CFMEU doesn't accept what VicForests is saying about the availability of timber, Victorian forestry division secretary Frank Vari says.

At least 50 semi-trailers will be parked outside Parliament House in Melbourne, with logging drivers protesting the closure of they Heyfield Harwood Mill. Source: Sunrise

"Members have made it clear their jobs are not for sale. We don't care who owns the mill - it's the jobs that matter," he said in a statement.

About 250 people will lose their jobs when the mill closes in September next year.

The Tasmanian government says it would welcome "with open arms" Heyfield and any forestry businesses considering moving their operations.

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