Economy
Gunns slashes up to 150 jobs. Premier sad. Mill may have backing: Examiner
24 November 2010
Media Release
RESTRUCTURE OF GUNNS FOREST PRODUCTS BUSINESS
Gunns Limited Chief Executive Greg L’Estrange said the company would close several northern Tasmania woodchipping sites as part of a major operational restructure of its forest products division.
Mr L’Estrange said the restructure would not materially affect the company’s forecast earnings. Up to 150 jobs may be made redundant as part of the restructure.
“Forest Products in Tasmania, in particular, has suffered large volume losses as markets demand higher pulp yielding plantation woodchips, preferably with FSC certification,” Mr L’Estrange said.
“The recent rise in the value of the $A has made our products very uncompetitive in Asian markets. There is also increased competition from plantation fibre as the vast areas planted in Australia over the past 15 years reach maturity. The current pulp yield from plantation hardwood far exceeds the yields from our mixed supply hardwood woodchips sourced from across Australia.
“This is the effect of further volume reductions from Tasmania for 2011 and beyond. Our historical trading partner Japan is both reducing capacity and moving away from woodchips sourced from natural forests which are unable to achieve FSC certification.”
Mr L’Estrange said a detailed timetable would be presented to employees in the coming weeks. The restructure is expected to take several months to complete. Where roles are made redundant, entitlements will be met in line with current agreements. An employee assistance package is being developed to provide guidance to affected employees who request assistance.
“This is a regrettable situation and the impact on individuals and their families is well understood by myself and the company,” Mr L’Estrange said.
“Our thanks and appreciation is extended to everyone in the business and in particular to those who will no longer be an employee of Gunns. We are operating in a very challenging environment and we must continue to drive down costs as we seek to develop our future as a supplier of high quality, low cost pulp sourced from our plantation estates.”
Premier Bartlett …
David Bartlett, MP
Premier
Wednesday, 24 November 2010
Gunns Woodchip Mills Announcement
The Premier, David Bartlett, today expressed sadness and sympathy for workers reportedly facing redundancy from Gunns’ woodchip mills around Tasmania.
“As expected for some time now, the company has foreshadowed a major restructure of its woodchip operations, as it adjusts to global market factors,” Mr Bartlett said.
“Our thoughts are with the workers and families badly affected by this announcement.
“They’ve endured much uncertainty in recent months, as it became clear that unavoidable change was coming to their industry,because of global market changes.
“We’ll do everything possible to help them through this difficult period, and create a better and more secure future.
Mr Bartlett said today’s announcement was more sad confirmation that doing nothing is not an option, for the future of the forestry industry.
“We’ve said for several months that a wave of change is coming to the forestry industry.
“We need to help the whole forestry industry adapt and transition to a sustainable footing.
“The Government is determined to lead the community through that transition, and provide long-term certainty and stability for workers.
“The Statement of Principles agreed between the industry and conservation movement gives us the best chance of doing that.
“Sadly, these developments are further proof to some people, including certain politicians, that burying our heads in the sand and doing nothing is not an option.
“Nor should they be spreading fear and division about a crucial transition process, which did nothing to cause these job losses, but may prevent many more in coming years.
“We need a unified and responsible approach, as we lead the community through this looming challenge.
“The Government wants to work with the industry to ensure vital infrastructure is available as we help it transition,” Mr Bartlett said.
First published: 2010-11-24 09:12 PM
Thursday:
150 woodchip jobs to go Pulp mill speculation mounts
BY ALISON ANDREWS CHIEF REPORTER
25 Nov, 2010 01:00 AM
TIMBER company Gunns has confirmed that up to 150 jobs will go as it shuts woodchip mills around the state.
The announcement late yesterday came as industry pundits expected early news that Gunns finally had financial backing for the proposed $2.3 billion Bell Bay pulp mill.
The company’s annual meeting is in Launceston today.
An announcement on pulp mill finance was expected by Christmas but sources say that it could come as early as today.
Even an in-principle agreement would be positive news for shareholders after an otherwise gloomy 12 months.
…
Gunns has woodchip operations at Long Reach on the East Tamar, at Hampshire near Burnie and at Triabunna on the East Coast.