The correct location of harvesting machinery is an important problem for the timber industry, as these are expensive pieces of equipment. Also, access roads need to be constructed within a season of harvesting. In this paper, we present the modelling of this problem as a mixed integer linear model which, without any special technique, is very difficult to solve. Strengthening of the original linear programming formulation, and a Lagrangian Relaxation algorithm are developed to improve the solution process. We show test results in a real industry problem.