Midway was established in 1980 by a number of Victorian hardwood sawmillers with the objective of establishing a viable export market for hardwood sawmill residues. At that time, the Victorian hardwood sawmilling industry relied on the Victorian
Government for supply of sawlogs from state owned forests.Offcuts from the sawmilling process were chipped at the sawmill
and brought to Geelong for stockpiling and shipping to a pulp and paper producer in Japan.