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Kalangadoo finally sells for failed Gunns

Receivers for Gunns have finally sold the Kalangadoo timber treatment plant in South Australia. Contracts were exchanged and the sale will be finalised for an undisclosed amount.

A spokesman for the receiver KordaMentha, Michael Smith, said it is a good result.

“That’s the first asset sale from the receivership which is now three weeks old,” he said.

“That means the 19 employees there will keep their jobs and it will also help … Gunns’ sawmills maintain their treatment contracts, so that’s a bit of good news on that front.”

The Bell Bay sawmill in northern Tasmania and another sawmill in Tarpeena, in South Australia, are on the market.

The Tarpeena sawmill has about 200 employees.

The Mayor of the Grant District Council, Richard Sage, says many stakeholders are involved.

“You’ve got all the suppliers, the engineers, the diesel mechanics and those sort of guys that do the jobs in the mills but also look after the log hauliers and the guys that bring the logs into the mill,” he said.

“So there’s a gamut of people out there that rely on the timber industry.”