Nov 25, 2010. /Lesprom Network/. Gunns Limited would close several northern Tasmania woodchipping sites as part of a major operational restructure of its forest products division, as the company said in a press release received by Lesprom Network. Gunns Limited Chief Executive Greg 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.