Today’s announcement that Gunns will be recapitalised to the tune of $280 million helps to progress the Bell Bay Pulp Mill, providing hope of a sustainable future for Tasmanian forestry industry workers, CFMEU National Secretary, Michael O’Connor said today.

The company has announced it will receive a $150 million investment from the Richard Chandler Corporation.

Along with a rights issue to existing shareholders, the recapitalisation will raise up to $280 million, leaving Gunns debt free and well placed to finance the Pulp Mill.

“This is a significant development and shows the confidence investors have in a sustainable Tasmanian forestry industry,” CFMEU National Secretary, Michael O’Connor said.

“It would be foolish for anyone to bury their head in the sand and pretend the industry and its workforce aren’t facing challenges.

“So today’s announcement that this vital project is a step closer is great news for Tasmanian forestry industry workers and their families.”

The project will create more than 3000 jobs, with significant spin off benefits for the Tasmanian economy. The company has previously committed to employing as many Tasmanians as possible.

The Pulp Mill will provide downstream, value added processing of forestry product in Tasmania, providing the state with a stronger economic platform into the future.

“A pulp mill has always been a vital component in the transition to a sustainable, long term forestry industry in Tasmania,” Mr O’Connor said.

“Today’s announcement will improve the confidence of forestry workers, their families and their communities.”

For further comment: Michael O'Connor 0418 550 831