Former Gunns chairman John Gay buying two of company's wood mills, timber drying plant, in Tasmania, sources say

Audrey Dixon

Audrey Dixon

LOS ANGELES , October 18, 2011 () – Former Gunns Ltd. Chairman John Gay is in the process of acquiring two of the company’s wood mills and a timber drying plant, according to a report in The Australian, Oct. 19.

Gay, who quit Gunns in May last year after a shareholder revolt, is now looking to purchase Gunns’ sawmill at Deloraine, a veneer mill at Somerset, and a timber drying and finishing plant in Launceston, all in Tasmania.

According to The Australian, the plan was confirmed by industry sources.

Gay has in the past been an outspoken supporter of native-forest logging, which is highly controversial in Tasmania and Gunns has since made steps to move away from its dependence on native forests.

His resignation from Gunns on May 27, 2010, followed a sell-off of company shares by institutional shareholders over the company’s old-growth logging. New managing director Greg L'Estrange has dramatically set about reshaping Gunns, The Australian noted.

The Tasmanian Greens party is arguing that any supply of timber by state-owned Forestry Tasmania (FT) to the Somerset and Deloraine mills would undermine the AU$276 million intergovernmental agreement on forests. Greens spokesperson Kim Booth said it would also breach a commercial settlement between FT, Gunns and the crown stipulating that Gunns' retired wood supply contracts cannot be on-sold.

The primary source of this article is The Australian, Sydney, Australia, Oct. 19, 2011.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again.