Gunns to close Deanmill Jarrah sawmill in Western Australia
Jan 31, 2011. Gunns Limited would close its Deanmill Jarrah sawmilling site in Western Australia next month. The mill will close on 18 February, with 44 employees made redundant.
Jan 31, 2011. /Lesprom Network/. Gunns Limited would close its Deanmill Jarrah sawmilling site in Western Australia (WA) next month. The mill will close on 18 February, with 44 employees made redundant, as the company said in a press release received by Lesprom Network.
Gunns will maintain its Manjimup processing and Welshpool retail sales operations to reduce stock over the next 12 to 18 months. A decision on the level of activity at the Manjimup site will be made during that period.
“We said last year when announcing the review that the WA Government’s restructure of the timber industry in 2004 has resulted in a lower grade of log being received, together with the significant increase in the cost of the log resource,” Gunns Limited Chief Executive Greg L’Estrange said.
“The volume and price of imported timber products coming into the local market has also had an impact on the business. We have held talks with several possible buyers but have been unable to reach any agreement. Gunns has a long and proud history in the West Australian hardwood industry and we have made every effort to continue; however, at this point there are no viable alternatives to the closure of Deanmill,” Mr. L’Estrange added.