Greg L’Estrange, managing director of Gunns said at the company’s AGM this week that logging native forests is faced with declining and uncertain markets, at a time when the broader Australian community is strongly opposed to the harvesting of our natural forest for woodchip.

He said, “There is a strong need for us to transition into a modern forest industry that achieves the balance between the environment and industry.

We will move away from exporting lower-value woodchips to exporting high-value paper pulp, and at the same time provide for greater stability for the workforce utilising the renewable plantation resource.”

The company, which recently announcement it would stop logging native forests, claims implementation of a forest agreement would involve substantial change for Gunns as an organisation and for many of the company’s staff and contractors.

L’Estrange said, “It is acknowledged that these changes will require some of our businesses to close and for us to sell others.

“This is not a reflection on the dedication or skill of those affected employees or contractors, but a reflection of a profound shift in both the economics of the sector and the social requirements of the broader community in which we operate.”

The company also outlined that the proposed Bell Bay Pulp Mill was critical to any strategy for achieving the modern Tasmanian forest industry outlined in the recent historic Forest Statement of Principles.

Chris Newman, chairman of Gunns said the pulp mill project remained on track, with the company expected to complete its financing strategy early next year following an extensive formal process.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter