Malaysian-owned wood processing company Ta Ann is blaming environmentalists for its decision to shed 40 jobs in Tasmania.
The company says sales of its products in Japan have fallen 50 per cent as a result of 'market attacks' by green groups.
Environmentalists recently visited customers of Ta Ann in Japan and mounted a cyber campaign to put their case that the company sources its products from high conservation value forests.
The company said it hoped anti-logging environmentalists would stop campaigning against Tasmania's overseas customers to save jobs.
Ta Ann, which sells wood product to some of Japan's biggest home builders, says a third of its $45 million contribution to the state's economy would be lost with its two mills operating at reduced levels.
It says a solution was needed for sustainable wood production in Tasmania.
'Ta Ann Tasmania sincerely apologises for the hurt this decision carries, but regrettably it has no choice,' resources manager Greg Hickey said.
State opposition leader Will Hodgman blames the job losses on the intergovernmental agreement (IGA) on forestry.
'The IGA was meant to bring peace,' he said in a statement.
'It has failed.
'The IGA was meant to protect jobs. It has failed.
'Today's announcement by Ta Ann is the last straw.'
Twelve of Tasmania's 15 upper house members have voiced concern about the federal-state government agreement.
In a move they claim is unprecedented, nine will gather outside parliament on Monday afternoon.
The members of the state's Legislative Council, which is dominated by independents, say they will block the creation of new reserves if environmentalists continue their tactic of 'overseas blackmail'.
