There is more uncertainty over jobs in Tasmania’s north-east after a local development group missed out on buying a former Gunns sawmill. Source: ABC News
Gunns receiver Korda Mentha sold the Ling Siding site near Scottsdale to an unnamed bidder.
The Dorset Renewable Industries group was promised $2.8 million in forest peace deal funding to develop an integrated timber processing hub at the Ling Siding site.
Korda Mentha announced the asset has been sold but it will not name the new owner or disclose the sale price, saying that is up to the successful bidder.
A spokesman said the receiver accepted the highest unconditional offer after extending the deadline for by six weeks to give the development group a chance to secure the Commonwealth funding.
The local group estimated the timber processing hub would have created about 40 jobs.
Spokesman David Hamilton said it is disappointing.
He said the group would try to find a different site for its proposed timber processing hub.
“Unfortunately the uncertainties about our grant and its timing were the things that got in the way of our being successful,” he said.
“But still we have been promised a grant, we are hoping to proceed with our plans.”
Dorset Mayor Barry Jarvis said it is unclear how the new owner planned to use the mill.
“There is no indication that there’ll be 40 jobs created so obviously that’s a disappointment to the community, so not knowing and the unknown is probably the worst part about it,” he said.
It is still not known when the peace deal money will be delivered.
