Tasmania's Deputy Premier Bryan Green welcomes sale of Gunns' Southwood Huon sawmill to Victoria-based Del Vista Forest Products, says it demonstrates investors' confidence in state's industry

HOBART, Australia , October 19, 2011 (press release) – Deputy Premier Bryan Green today welcomed the sale of the Southwood Huon sawmill which he said was a strong signal of investor confidence in Tasmania’s forest industry.
“The forest industry is moving forward and the sale demonstrates people do have confidence in investing in our State,” Mr Green said.

Mr Green said the contract for the sale of the regrowth sawmill to Victorian-based company Del Vista Forest Products was expected to be finalised by the end of this month.

“It is great news for the Huon valley and the wider forestry sector.

Mr Green said the mill would employ 25 workers, the same number as under the ownership of Gunns.

“The new owners are working with Forestry Tasmania to finalise wood supply arrangements consistent with the Kelty Report and the Tasmanian Forests Intergovernmental Agreement.

“The Government is working closely with the industry as we move through the process of transition to ensure the forest sector has a strong and sustainable future.

Mr Green said the likely sale of the Somerset veneer mill was also positive news.

“These are significant developments as we progress the IGA.

“The IGA is not the cause of the change occurring in our forestry industry but it will provide solutions and future opportunities that secure jobs and economic prosperity for regional communities around Tasmania,” Mr Green said.

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