Gunns

Gunns Limited
Company type	Public company
Industry	Forestry, woodchipping, sawmilling, veneer manufacturing
Founded	1875
Founder	John Gunn, Thomas Gunn
Defunct	March 2013
Fate	Entered liquidation
Headquarters	Tasmania, Australia
Area served	Tasmania, Australian mainland (Victoria, South Australia, Western Australia)
Key people	Edmund Rouse (former chairman), John Gay (former CEO)
Products	Woodchips, timber flooring, veneer
Number of employees	1,200 (at peak)

Gunns Limited was a prominent forestry company headquartered in Tasmania, Australia, engaged in activities such as forest management, woodchipping, sawmilling, and the manufacture of veneer. The firm entered liquidation proceedings in March 2013.

History

Established in 1875 by siblings John and Thomas Gunn, it stood as one of the longest-running companies in Australia. Gunns oversaw plantations covering more than 900 square kilometres, predominantly composed of eucalyptus species. In 2001, the company expanded its footprint by acquiring North Forest Products, Tasmania's largest woodchip producer, for $335 million, thereby becoming the leading woodchip exporter in Australia. At its height, Gunns was the largest private landholder in Tasmania and employed upwards of 1,200 staff. Its revenue plummeted from over A$600 million in 2006 to losses surpassing $350 million by 2011. As one of the Southern Hemisphere’s top woodchip exporters and one of two entities sourcing raw forest materials from Tasmania—the other being Neville Smith Forest Products through SmartFiber in Bell Bay—Gunns reported a $900 million loss for the 2011–12 period alongside debts amounting to $3 billion. After its financier withdrew support on 25 September 2012, Gunns entered voluntary administration and was ultimately liquidated in March 2013.

Following liquidation, New Forests acquired Gunns’ assets and retained some former employees.

Operations

Gunns broadened its operations onto the Australian mainland by purchasing Auspine in 2007. In September 2010, the company declared it would halt logging of old growth forests to concentrate exclusively on plantation timber. By November 2011, all Gunns Mitre 10 outlets were sold to Danks Brothers Hardware Group—a subsidiary of Woolworths Limited—and rebranded as Beck's Home Timber and Hardware.

The company entered voluntary administration on 25 September 2012 and was later wound up after unsuccessful attempts to secure additional funding or restructure its operations.

Tasmania

Within Tasmania, Gunns operated multiple sawmills across the state along with three woodchipping facilities located at Longreach (near Bell Bay), Triabunna on the east coast, and Hampshire near Burnie. Most sawmills and all woodchip mills were shut down during 2011. After entering administration in 2012, the Longreach mill briefly resumed operations to export woodchips.

In 2008, restructuring at the Scottsdale sawmill led to approximately 70 job cuts and the forfeiture of significant federal funding due to a breach of contract. Additionally, about 135 employees lost their positions at the Auspine sawmill in Tonganah following the awarding of a softwood timber contract to a rival company.

Victoria

In 2009, Gunns secured a contract to manage a new woodchip processing plant located at Portland. The facility was sold in 2012 to Australian Bluegum Plantations for $61.8 million.

South Australia

The company managed blue gum plantations on Kangaroo Island in South Australia and was a key client of Morgan Sawmill based in Jamestown. Gunns acquired the Tarpeena softwood sawmill from the defunct Forest Enterprises Australia before selling it subsequently to Timberlink.

Western Australia

In Western Australia, Gunns operated three hardwood sawmills producing timber flooring products including highly regarded jarrah hardwood sourced from the state's southwest region. Known for its distinctive reddish-brown color and durability, jarrah timber formed an important part of Gunns’ product range. The company held ISO 9001:2000 Quality Assurance and ISO 14001:2004 environmental certifications, underscoring its dedication to sustainable practices. From its distribution centre in Welshpool, near Perth, Gunns supplied both trade customers and retail markets locally.

Criticism

Gunns has been the subject of environmentalist opposition due to its operation of four woodchip mills, which collectively produce around 4 million tonnes annually for export. Opponents contend that native forests are being harvested for woodchipping purposes, whereas Gunns asserts that the majority of woodchips are derived from residues generated by sawmills and veneer production. Key buyers include paper manufacturers in Northern Asia, especially in Japan, such as Mitsubishi, Nippon Paper Group, and Oji Paper. The company has also attracted criticism for logging activities in the Styx Valley and for employing 1080 poison to control wildlife populations, including protected species, through baiting and aerial dispersal prior to clearfelling.

In 1989, Gunns’ chairman Edmund Rouse was found guilty of attempting to bribe a Labor Party member to support the pro-logging Tasmanian government under Premier Robin Gray. Gray subsequently joined Gunns as a director in 2000 and retired from the position in 2010.

Further controversy emerged when Premier Paul Lennon had his heritage residence renovated by a company owned by Gunns during the period when the Bell Bay Pulp Mill was being promoted, with Lennon refusing to reveal the renovation expenses.

Bell Bay Pulp Mill

Gunns proposed constructing a $2 billion pulp mill in Tasmania’s Tamar Valley near Launceston. The facility was intended to utilize the Kraft process combined with Elemental Chlorine Free (ECF) bleaching and would have sourced timber from plantation-grown eucalypts. The project received backing from the State Government, which anticipated $6.7 billion in expenditure over 25 years and the creation of approximately 2,000 temporary jobs during construction. Despite this support, environmental and community groups strongly opposed the development. Federal Environment Minister Malcolm Turnbull granted approval on 3 October 2007; however, this consent was later overturned on appeal due to procedural irregularities challenged by The Wilderness Society.

Gunns 20

In the 2005 legal action Gunns Limited v Marr & Ors, Gunns initiated a writ in the Supreme Court of Victoria against twenty individuals and organizations—including Senator Bob Brown—seeking damages exceeding A$7.8 million.

The initial defendants were:

Bob Brown - federal Greens senator (case dropped December 2006)
Simon Leo Brown - resolved with agreements not to participate in protests
Adam Burling - Huon Valley Environment Centre (dropped)
Brian Dimmick
Doctors for Native Forests Inc. (separate case settled with an apology)
Heidi Douglas - The Wilderness Society (TWS), settled in 2009 with undertakings
Neal Funnell - settled in 2009 with limited undertakings
Helen Gee (dropped November 2006)
Lou Geraghty
Russell Hanson - TWS, settled in 2007 with undertakings
Huon Valley Environment Centre Inc.
Geoff Law - TWS, settled in 2008 with damages awarded to Gunns
Alec Marr - TWS, settled in 2008 with damages and costs awarded to Gunns
Leanne Minshull - reached settlement with TWS in 2008
Louise Morris - settled in 2009 with limited undertakings
Ben Morrow - settled in 2008 with damages and costs awarded to Gunns
Frank Nicklason - settled following a written public apology retracting claims
Peter Pullinger (dropped November 2006)
Margaret (Peg) Putt - Tasmanian Greens MHA (dropped December 2006)
The Wilderness Society Inc., settled in 2008 with damages and costs awarded to Gunns

Gunns accused these parties of harming its reputation and causing financial damage. The defendants maintained their actions were efforts to protect the environment. Collectively labeled as the "Gunns 20," this lawsuit attracted criticism as a potential strategic legal action designed to intimidate public dissent against the company.

Gunns argued that its objective was to prevent unlawful disruptions affecting its operations, citing instances of assault on forestry personnel and acts of vandalism. Although an amended statement of claim was dismissed in July 2005, Gunns was permitted to submit a third version by August that year.

The litigation concluded on 20 October 2006 when Justice Bongiorno ruled costs should be awarded to the respondents. Subsequently, Gunns withdrew claims against Helen Gee, Peter Pullinger, and Doctors for Forests in November 2006, as well as against Greens MPs Bob Brown and Peg Putt in December 2006. The remaining issues were resolved through settlements. This case was featured in Defendant 5, a program focusing on Heidi Douglas that aired on ABC and Al Jazeera.

Triabunna Woodchipping Mill Redevelopment

In 2011, the Triabunna Mill was acquired from Gunns for $10 million by Graeme Wood, known for founding Wotif.com, and Jan Cameron, the entrepreneur behind Kathmandu outdoor apparel. Their offer surpassed competing forest-sector bids through immediate payment. Both buyers, committed environmental advocates, intended to transform the site into an environmentally sustainable tourist destination or themed attraction. The negotiations were spearheaded by Alec Marr, formerly the Wilderness Society’s director. Following Tony Abbott’s appointment as Prime Minister, he and Eric Abetz attempted to forcibly purchase the mill to resume woodchipping activities. To thwart this plan, Marr clandestinely enlisted workers who deliberately damaged the mill’s control room and infrastructure, effectively halting all operations permanently.

Insider Trading Incident

In August 2013, John Gay, ex-CEO of Gunns who managed much of the company’s downturn between 1986 and 2010, was found guilty of insider trading. He had sold shares in December 2009 shortly before a sudden announcement disclosed a 98% decline in half-year profits.

External links

Gunns Limited
Pulp Mill Project
Gunns on SourceWatch
Gunns Limited overview from The Wilderness Society.