Labor accuses Gunns of breach
Matthew Denholm; 4/7/08
Gunns has been accused by the federal Government of breaching a $4.5million grant deal by retrenching 130 workers whose jobs were meant to be saved by the assistance. Federal Industry Minister Kim Carr told The Australian yesterday there was “no question” that Gunns had breached the agreement, which aimed to avert redundancies at two pine sawmills in Scottsdale, northeast Tasmania. “There is no question that the actions of the company are in breach of the contract,” Senator Carr said. “We will be making no more payments until we know what the facts are.”
See: http://www.theaustralian.news.com.au/story/0,25197,23966383-2702,00.html
Gunns chases joint venture partner to help finance pulp mill
4/7/08
Gunns has flagged using a joint venture, potentially with Chinese pulp customers, to help finance its proposed $2 billion Tasmanian pulp mill. While pulp prices remain strong, the company has been struggling to secure sufficient finance to meet its aim of funding the mill entirely from debt. Yesterday, Gunns executive chairman John Gay used a statement to the Australian Stock Exchange to raise the prospect of using an equity partner to fill any funding shortfall. Mr Gay told the ASX the company was negotiating terms with a banking syndicate to provide finance, despite “challenging” market conditions.
See: http://www.theaustralian.news.com.au/story/0,25197,23966384-5006788,00.html
Tags: Australia, Environment, Trade