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Gunns to spread its roots
27 Aug 2004
Timber company Gunns Ltd is targeting interstate expansion and the development of a pulp mill in its home state of Tasmania, following strong demand for its forestry products. Yesterday Gunns announced a 42.4 per cent rise in net profit to $105.31 million. The board declared a final fully-franked dividend of 30 cents a share, up from 23 cents a share last year.
The timber giant said it expects to complete a feasibility study into the development of a Tasmanian eucalyptus pulp mill by January 2005. If the mill goes ahead it could cost between $500 million and $1 billion.
In terms of geographical expansion, Gunns said its recent acquisition of the WA jarrah sawmills would increase turnover by $20 million in 2005. The company is also looking at a saw-milling opportunity in Victoria.
Australian Financial Review, 27/8/04.
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