Dec 02, 2004. /Lesprom Network/. Carter Holt Harvey yesterday launched an intensive two-month program to turn around its loss-making operation in Bell Bay, Tasmania. The program is seeking the support of major suppliers, major customers and Government to secure the future of the facility. The Bell Bay operation employs 110 people and produces 160,000 cubic metres per annum of commodity-grade medium density fibreboard (MDF) for Australian and international markets. Carter Holt Harvey Chief Operating Officer Ian Unwin said the site had been operating at a financial loss for more than two years and the company held concerns for its long-term viability. "Unfortunately Bell Bay's high cost structure has been exacerbated by the strong Australian dollar, record international oil prices and the high cost of Tasmanian wood – all factors beyond our control," he said. "The appreciating Australian dollar has been the single largest influence having risen more than 40% since we bought the site. This can only be bad news for a site with a strong export focus." Mr Unwin noted the program was not a reflection on the quality of the Bell Bay operations or its people. "Our people have shown great loyalty and have already made excellent progress in improving the site's environment, safety and production record. They were the first to hear about this program when it was launched yesterday and we will continue to keep them informed of developments," he said. "We recognise the significant uncertainty this creates for our employees and their community. CHH will do everything possible to handle this review sensitively and will continue to offer any support required." The two-month program is expected to reach a conclusion during February 2005. Mr Unwin acknowledged that closure of the site was a possibility, but stressed it remained Carter Holt Harvey’s option of last resort. "Ultimately the Bell Bay site must be able to compete on the world stage and we will exhaust all sensible opportunities to make this possible," he said.