Integrated hardwood forest products company Gunns has announced it may wind down its WA jarrah market as it reviews its sawmilling, processing and retail sales operations at Deanmill, Manjimup and Welshpool.
Integrated hardwood forest products company Gunns has announced it may wind down its WA jarrah market as it reviews its sawmilling, processing and retail sales operations at Deanmill, Manjimup and Welshpool.
The decision puts up to 120 jobs in the timber town of Manjimup at risk.
"The jarrah business has suffered since the state government's restructure of the timber industry in January 2004," said Gunns chief executive Greg L'Estrange.
"The lower grade of log now being received, together with the significant increase in the cost of the log resource, has resulted in this decision.
"More recently the volume and price of imported timber products coming into the local market has had an impact on the business."
"Gunns has a long and proud history in the hardwood industry in Western Australia.
"We owe it to all of our employees who have made every effort to make the business viable during a very difficult period for the industry, to explore all available opportunities."
Mr L'Estrange said Gunns is open to discussions on a viable alternative that will maintain employment in the town.
"However, it is important to recognise the current difficult conditions and understand that winding down our WA jarrah operations remains a real possibility," he said.
See company statement below:
Integrated hardwood forest products company Gunns Limited will review the future of its jarrah sawmilling, processing and retail sales operations at Deanmill, Manjimup and Welshpool.
Chief Executive of Gunns Limited, Greg L'Estrange said: "The jarrah business has suffered since the state Government's restructure of the timber industry in January 2004."
"The lower grade of log now being received, together with the significant increase in the cost of the log resource, has resulted in this decision. More recently the volume and price of imported timber products coming into the local market has had an impact on the business."
"We are very disappointed that we now have to go down this path, which may result in us exiting from the WA jarrah operations".
"Gunns has a long and proud history in the hardwood industry in Western Australia. We owe it to all of our employees who have made every effort to make the business viable during a very difficult period for the industry, to explore all available opportunities.
"If this announcement results in a viable alternative and one that maintains employment in the Manjimup region, we would remain open to all options. However, it is important to recognise the current difficult conditions and understand that winding down our WA jarrah operations remains a real possibility."
