Editing Gunns

{{Lead too short|date=April 2020}}
{{Use dmy dates|date=April 2020}}
{{Use Australian English|date=April 2011}}
{{Infobox company
|name              =  Gunns Limited
|logo              =  [[File:Gunns Limited logo.svg|200px]]
|type              =  [[Public company]] 
| traded_as  = {{Asx|GNS}}
|founder           =  John and Thomas Gunn
|area_served       = 
| key_people = {{Unbulleted list
| [[John Gay (businessman)|John Gay]] (former [[Chief executive officer|CEO]])
| Chris Newman ([[Chairman]])
}}
|industry          =  [[Timber]] production
|genre             = 
|products          = 
|services          = 
|revenue           =  {{loss}}[[A$]]406 million (2012)<ref>{{cite web|title=Preliminary Final Report |url= http://www.gunns.com.au/Content/uploads/documents/ASX%20RELEASE%20-%202012%2008%2031%20-%202012%20Preliminary%20Final%20Report.pdf |work= Gunns Limited |via= gunns.com.au |access-date= 25 September 2012 |date= 31 August 2012 }}</ref>
|operating_income  = 
|net_income        =  {{loss}}[[A$]]904 million (2012)
|owner             = 
|num_employees     =  645 (2012)<ref name="Gunnadmin"/>
|parent            = 
|divisions         =  Gunns Plantations Limited<br/>Gunns Forestry Limited<br/>Tamar Ridge Wines<br/>Gunns Retail<br/>Gunns Timber Products<br/>Gunns Pulp
|subsid            = 
|homepage          =  [http://www.gunns.com.au/ www.gunns.com.au]
|footnotes         = 
|foundation        =  [[:Category:Companies established in 1875|1875]]
|location_city     =  [[Launceston, Tasmania|Launceston]], [[Tasmania]]
|location_country  =  [[Australia]]
|location          =  <!--modifies "Headquarters" entry-->
|locations         =  <!--# of locations-->
|caption            = 
|dissolved         =March 2013 
}}

'''Gunns Limited''' was a major [[forestry]] enterprise located in [[Tasmania]], [[Australia]]. It had operations in [[forest management]], [[Woodchipping in Australia|woodchipping]], [[sawmilling]] and [[Wood veneer|veneer]] production. The company was placed into liquidation in March 2013.

==History==
Founded in 1875 by brothers John and Thomas Gunn, it was one of Australia's oldest companies. It had over 900 square kilometres of plantations, mainly [[eucalyptus]] trees. In 2001 Gunns paid $335 million for Tasmania's biggest woodchip company, North Forest Products, making it Australia's biggest exporter of [[woodchips]]. At one stage it became Tasmania's largest private land-owner. The company employed over 1,200 people and had suffered a dramatic turnaround in revenue in its final years, going from a turnover in excess of A$600 million in 2006, to a loss of over $350 million in 2011.<ref name="mercury">{{cite web | title =  2011Annual Report| publisher =The Mercury Newspaper | url =http://www.themercury.com.au/article/2011/08/26/256251_tasmania-news.html| access-date =2011-09-09}}</ref> Gunns was one of the largest export woodchip operation in the [[Southern Hemisphere]], and one of two chip export companies sourcing raw materials from [[Tasmanian forests]], the other being [[Neville Smith Forest Products]] through their [[SmartFiber]] branch in [[Bell Bay, Tasmania|Bell Bay]].<ref name="Schofield2003">{{cite journal | last = Schofield | first = Leo |author-link = Leo Schofield | title = Toxic avengers | journal = Bulletin with Newsweek (Australia) | volume = 121 | pages = 11 |date=6 October 2003 | issue=6376}}</ref> Gunns announced a $900 million loss for 2011–12 and debts of $3 billion. On 25 September 2012, Gunns announced to the [[Australian Securities Exchange]] (ASX) that its board had decided to put the company into voluntary administration after its financier withdrew its support, and in March 2013 the company was placed into liquidation.

New Forests purchased the assets and employed former staff of the old company.

==Operations==
The move to expand its base into mainland operation began with the acquisition of Auspine in 2007.<ref name="gtm3">{{Cite news |url=http://www.smh.com.au/news/business/gunns-to-make-332m-takeover-offer-for-auspine/2007/05/15/1178995126795.html |title=Gunns to make $332m takeover offer for Auspine |access-date=5 October 2012 |date=15 May 2007 |newspaper=The Sydney Morning Herald }}</ref> In September 2010, Gunns announced that it would end logging of [[old growth]] forests and move to [[plantation timber]].<ref>{{cite news|url=http://www.smh.com.au/business/a-growth-industry-set-up-to-fail-20100910-15536.html|title=A growth industry set up to fail|last=Manning|first=Paddy|date=11 September 2010|work=[[The Sydney Morning Herald]]|access-date=11 September 2010}}</ref>  In November 2011, the Gunns Mitre 10 stores were re-branded as Beck's Home Timber and Hardware, after being sold to Danks Brothers Hardware Group, a subsidiary of [[Woolworths Limited]].<ref>{{cite news|title=All eyes on Gunns' share price|url=http://www.abc.net.au/news/stories/2010/05/26/2909453.htm?site=hobart|archive-url=https://archive.today/20121231062334/http://www.abc.net.au/news/stories/2010/05/26/2909453.htm?site=hobart|url-status=dead|archive-date=31 December 2012|access-date=25 September 2012|work=936 ABC Hobart|publisher=Australian Broadcasting Corporation|date=26 May 2010}}</ref>

Gunns was placed into voluntary administration on 25 September 2012, and later liquidated, after it was unable to raise further capital or restructure the business.<ref name="Gunnadmin">{{cite news|title=Gunns appoints administrators|url=http://www.smh.com.au/opinion/political-news/gunns-appoints-administrators-20120925-26i92.html|access-date=25 September 2012|newspaper=The Sydney Morning Herald|date=25 September 2012}}</ref>

===Tasmania===
Gunns operated sawmills across the state, as well as three woodchipping mills: [[Longreach]], near Bell Bay; [[Triabunna]], on the east coast; and Hampshire, near [[Burnie]]. The company was forced to close all three woodchipping mills and most of its sawmills in 2011. After being placed into voluntary administration in 2012, the Longreach mill was reopened and began exporting woodchips for a time.<ref>{{Cite web|url=http://www.examiner.com.au/story/1562987/woodchip-mill-reopens/|title=Woodchip mill reopens|date=10 June 2013}}</ref>

In 2008, operations at a sawmill in [[Scottsdale, Tasmania|Scottsdale]] were restructured, resulting in the loss of 70 jobs.<ref name="7jl">{{Cite news |url=http://www.abc.net.au/news/2008-07-02/70-jobs-lost-gunns-closes-scottsdale-sawmill/2491246 |title=70 jobs lost, Gunns closes Scottsdale sawmill |access-date=5 October 2012 |date=2 July 2008 |work=ABC News |publisher=Australian Broadcasting Corporation }}</ref> The sackings broke an agreement with the federal government, leading to the cancellation of substantial funding assistance.<ref name="glff">{{Cite news |url=http://www.abc.net.au/news/stories/2008/08/07/2327410.htm?site=hobart |archive-url=https://archive.today/20121231071427/http://www.abc.net.au/news/stories/2008/08/07/2327410.htm?site=hobart |url-status=dead |archive-date=31 December 2012 |title=Gunns loses federal funding |access-date=5 October 2012 |date=7 August 2008 |work=ABC Hobart |publisher=Australian Broadcasting Corporation }}</ref> In the same year, around 135 workers at another Auspine sawmill at [[Tonganah, Tasmania|Tonganah]] lost their jobs after a softwood timber contract had gone to a competitor.<ref name="gsa">{{Cite news |url=http://news.smh.com.au/national/gunns-sawmill-axes-up-to-135-jobs-20080710-3d3d.html |title=Gunns sawmill axes up to 135 jobs |author=Paul Carter |access-date=5 October 2012 |date=10 July 2008 |newspaper=The Sydney Morning Herald }}</ref>

===Victoria===
In 2009, the company was awarded a contract to operate a new woodchip processing facility at [[Portland, Victoria|Portland]].<ref name="givp">{{Cite news |url=http://www.abc.net.au/news/stories/2009/07/30/2641002.htm?site=northtas |archive-url=https://web.archive.org/web/20140328011032/http://www.abc.net.au/news/stories/2009/07/30/2641002.htm?site=northtas |url-status=dead |archive-date=28 March 2014 |title=Gunns in Victorian port woodchip deal |access-date=5 October 2012 |date=30 July 2009 |work=ABC Northern Tasmania |publisher=Australian Broadcasting Corporation }}</ref> The woodchipping mill was later sold off to Australian Bluegum Plantations in 2012, for $61.8 million.<ref name="Gunns offloads Portland sawmill">{{Cite news |url=http://www.smh.com.au/business/gunns-offloads-portland-woodchip-plant-for-618m-20120716-2266h.html |title=Gunns offloads Portland woodchip plant for $61.8m |date=16 July 2012 |work=The Sydney Morning Herald}}</ref>

===South Australia===
In South Australia the company managed [[Eucalyptus globulus|blue gum]] plantations on [[Kangaroo Island]].<ref name="gdc">{{Cite news |url=http://www.abc.net.au/news/2012-09-27/gunns-demise-creates-uncertain-times/4282970?section=sa |title=Gunns demise creates uncertain times |access-date=5 October 2012 |date=27 September 2012 |work=ABC News |publisher=Australian Broadcasting Corporation }}</ref> In [[Jamestown, South Australia|Jamestown]] Gunns was a major customer of Morgan Sawmill.<ref name="gdc"/>

Gunns bought the Tarpeena softwood sawmill from the now failed Forest Enterprises Australia, and which was later sold on to Timberlink.

===Western Australia===
Gunns operated three hardwood sawmills in [[Western Australia]]. Their nationwide product line of timber flooring included the hardwood, [[jarrah]], found in the southwest of the state.<!-- Link south west Bioregion? --> The timber is reddish-brown when hewn and is, "renowned for its beauty, warmth and durability".<ref>{{cite web | url = http://www.gunnswa.com.au/ | title = About Gunns (WA) | access-date = 2007-06-07 | author = Gunns | author-link = Gunns | publisher = Company website | quote = Gunns in Western Australia demonstrated its commitment to product and service excellence by achieving the coveted International Standard ISO9001:2000 Quality Assurance Certification. | archive-url = https://web.archive.org/web/20070322224617/http://www.gunnswa.com.au/ | archive-date = 22 March 2007 | url-status = dead }}</ref> Their environmental initiatives included achieving [[Quality assurance|certification]] under international standard [[ISO 14001]]:2004.<ref>{{cite web | url = http://www.gunnswa.com.au/ | title = Gunns Limited Western Australia - Environmental Policy | access-date = 2007-06-07 | author = Gunns | author-link = Gunns | author2 = Max Evans - General Manager | date = October 2006 | publisher = Company website | quote = Gunns is committed to the [[United Nations]] definition of [[sustainable development]]; that is "development that meets the needs of the present, without compromising the ability of future generations to meet their own needs". | archive-url = https://web.archive.org/web/20070322224617/http://www.gunnswa.com.au/ | archive-date = 22 March 2007 | url-status = dead }}</ref> Gunns supplied local trade and retail markets from its distribution yard in [[Welshpool, Western Australia|Welshpool]], near [[Perth, Western Australia|Perth]].

==Criticism==

[[Image:Rally1407 (www.tamarpulpmill.info).jpg|thumb|Anti-pulpmill rally (April 2007)]]
The company has been the focus of criticism from [[environmentalist]]s, primarily for its four woodchip mills which produce 4 million tonnes of chips for export annually. Green groups claim that native forests are harvested specifically for [[woodchipping]], whereas Gunns claim that the majority of their chips come from residue from their sawmilling and veneer operations. Gunns' major customers are paper producers in Northern Asia, mainly [[Japan]], including [[Mitsubishi]], [[Nippon Paper Group|Nippon]] and [[Oji Paper]]. Gunns has also been criticised for its logging operations in the [[Styx Valley]] and for its use of [[1080 poison]] [https://web.archive.org/web/20050915035251/http://www.wilderness.org.au/campaigns/corporate/gunns/whatisgunn/] to kill wildlife including protected species (baiting and particularly aerial spraying of forest prior to clearfelling<ref name="Schofield2003" />).

In 1989, the chairman of Gunns, [[Edmund Rouse]], unsuccessfully attempted to bribe a [[Australian Labor Party|Labor Party]] member, [[Jim Cox (Australian politician)|Jim Cox]], to cross the floor, which would have allowed the pro-logging Tasmanian government of premier [[Robin Gray (Australian politician)|Robin Gray]] and the [[Liberal Party of Australia|Liberal Party]] to resume power. A Royal Commission followed and convicted Rouse.<ref name=flanagan>{{cite journal | last = Flanagan | first = Richard | author-link = Richard Flanagan | title = Out of control: the tragedy of Tasmania's forests | journal = The Monthly | volume = 23 | pages = 20–31 |date=May 2007}}</ref> Robin Gray became director of Gunns Limited on 21 February 2000. He retired from the position in 2010.

Further allegations of corruption appeared when [[Paul Lennon]], Premier of Tasmania, had his heritage home renovated by a Gunns-owned company at the height of Gunns' push for the [[Bell Bay Pulp Mill]]. Lennon refused to disclose how much he paid for the renovations.<ref>The Australian. "[http://www.theaustralian.news.com.au/story/0,25197,22532174-28737,00.html Gunned down] {{Webarchive|url=https://web.archive.org/web/20080219174300/http://www.theaustralian.news.com.au/story/0,25197,22532174-28737,00.html |date=19 February 2008 }}". John Lyons. 5 October 2007.</ref>

===Bell Bay Pulp Mill===
{{Main|Bell Bay Pulp Mill}}
[[Image:Clouds (www.tamarpulpmill.info).jpg|thumb|right|The proposed mill site taken from [[Kayena, Tasmania]]]]
The company was planning to build a $2 billion [[pulp mill]] in the [[Tamar Valley, Tasmania|Tamar Valley]], near [[Launceston, Tasmania|Launceston]]. The proposed mill would have used the [[Kraft process]], Elemental Chlorine Free (ECF) bleaching, and been fed with plantation eucalypt forest timber. The project was supported by the [[Government of Tasmania|State Government]] for the perceived economic and employment benefits which were said to include $6.7 billion in spending over 25 years and 2000 temporary jobs created during the construction phase,<ref>http://www.justice.tas.gov.au/__data/assets/pdf_file/0004/82282/Final_ITS_Global_Report.pdf {{Webarchive|url=https://web.archive.org/web/20110930032349/http://www.justice.tas.gov.au/__data/assets/pdf_file/0004/82282/Final_ITS_Global_Report.pdf |date=30 September 2011 }} ITS Global Report</ref> but was opposed by environmental and social activist groups.
Federal Environment Minister Malcolm Turnbull gave approval for the project on Wednesday 3 October 2007.<ref>[https://web.archive.org/web/20071117214515/http://www.abc.net.au/news/stories/2007/10/04/2050653.htm ABC News]</ref> This decision was however challenged by The Wilderness Society and later overturned on appeal due to alleged flaws discovered in the approval process.

===Gunns 20===
In the 2005 ''Gunns Limited v Marr & Ors'' case,<ref name="vsc2005_251">{{Cite AustLII|VSC|251|2005}}</ref> Gunns filed a [[writ]] in the [[Supreme Court of Victoria]], against 20 individuals and organisations including Senator [[Bob Brown]], for over A$7.8 million.<ref name="vsc2006_386">{{Cite AustLII|VSC|386|2006}}</ref>

The original list of defendants were:
{{div col|colwidth=20em}}
*[[Bob Brown]] - federal [[Australian Greens|Greens]] senator (dropped December 2006)
*Simon Leo Brown - settled following certain undertakings not to protest
*Adam Burling - Huon Valley Environment Centre - dropped
*Brian Dimmick
*[[Doctors for Native Forests]] Inc. (Split off into separate action in November 2006 and settled as part of Nicklason apology)
*Heidi Douglas - [[The Wilderness Society (Australia)|The Wilderness Society]] (TWS). Settled in 2009 following certain undertakings not to protest.
*Neal Funnell. Settled in 2009 following self representation and limited undertakings not to protest.
*Helen Gee (dropped November 2006)
*Lou Geraghty
*Russell Hanson - TWS. Settled in 2007 following certain undertakings not to protest.
*the [[Huon Valley Environment Centre]] Inc.
*Geoff Law - TWS. Settled in September 2008 with damages of $15,000 awarded to Gunns.
*[[Alec Marr]] - TWS. Settled in May 2008 with damages of $45,000 and costs of $70,000 awarded to Gunns.
*Leanne Minshull - Settled with TWS 2008 agreement
*Louise Morris - Settled in 2009 following self representation limited undertakings not to protest.
*Ben Morrow. Settled in May 2008 with damages of $45,000 and costs of $70,000 awarded to Gunns.
*Frank Nicklason - Settled following written public apology from Nicklason withdrawing claims of legionella in woodchip piles.
*Peter Pullinger (dropped November 2006)
*[[Peg Putt|Margaret (Peg) Putt]] - [[Tasmanian Greens|Greens]] [[Tasmanian House of Assembly|MHA]] (dropped December 2006)
*[[The Wilderness Society (Australia)|The Wilderness Society]] Inc.Settled in May 2008 with damages of $45,000 and costs of $70,000 awarded to Gunns.
{{div col end}}
[[Image:Gunns 20 Protest Franklin Square 15Dec2004.jpg|thumb|right|Some members of the "Gunns 20" at a protest rally, December 2004 (Bob Brown centre, Peg Putt right)]]

Gunns claims that the defendants have sullied its reputation and caused it to lose jobs and profits. The defendants claim that they are protecting the environment. The defendants have become collectively known as the "Gunns 20".<ref>''[http://www.theage.com.au/news/in-depth/gunns-greenies-and-the-law/2006/08/29/1156617279358.html?page=fullpage#contentSwap1 Gunns, greenies and the law]'' by Andrew Darby, The Age, 29 August 2006. Accessed 10 June 2007</ref>

Opponents and critics of the case have suggested that the writ was filed with the intent to discourage public criticism of the company, in a similar vein to a [[Strategic lawsuit against public participation]], commonly used in North America,<ref>{{cite web |url=http://bob-brown.greensmps.org.au/taxonomy/term/131/all |title=GUNNS 20 |access-date=2007-06-07 |work=Senator Bob Brown |archive-url=https://web.archive.org/web/20110313111718/http://bob-brown.greensmps.org.au/taxonomy/term/131/all |archive-date=13 March 2011 |url-status=dead }}</ref><ref>{{cite news | title =Tasmanian action a threat to basic rights| work =[[The Guardian]] | date =2006-04-03 | url=https://www.theguardian.com/letters/story/0,,1745396,00.html | access-date =2007-06-07 | location=London}}</ref> and the English [[McLibel case]] of [[McDonald's|McDonald's Restaurants]] against environmental activists Helen Steel and David Morris over a pamphlet critical of the company.<ref>{{cite news | url=http://www.theage.com.au/news/Opinion/Who-benefits-when-a-company-sues-to-save-its-reputation/2004/12/16/1102787209525.html | title=Who benefits when a company sues to save its reputation? Melbourne Age Newspaper, 17 Dec 04 | work=The Age | date=17 December 2004}}</ref> Gunns has maintained the position that they are merely trying to prevent parties enjoined to the writ from undertaking unlawful activities that disrupt their business. The statement of claim alleged incidents of assault against forestry workers and vandalism.<ref>{{cite web | url=http://www.abc.net.au/rn/talks/8.30/lawrpt/stories/s1287516.htm | title=The Law Report, ABC Radio National, 25 Jan 05| website=[[Australian Broadcasting Corporation]]}}</ref><ref>{{cite news | url=http://www.smh.com.au/news/Opinion/Middleground-views-are-up-against-battleground-tactics/2005/04/06/1112489558868.html | title=The Sydney Morning Herald, Middle ground views are up against battleground tactics, 7 Apr 05 | work=The Sydney Morning Herald | date=7 April 2005}}</ref>

At a hearing before the [[Supreme Court of Victoria]], an amended statement of claim lodged by the company and served on defendants on 1 July 2005 was dismissed.<ref name="vsc2005_251"/> However, the judge in the case granted the company leave to lodge a third version of their statement of claim with the court no later than 15 August 2005.<ref name="vsc2005_251"/>

The application continued before the court, before being brought to a close on 20 October 2006.<ref name="vsc2006_386"/> In his ruling, The Honourable Justice Bongiorno, made an award of costs in favour of the respondents.<ref name="vsc2006_386"/>

In November 2006, Gunns dropped the case against Helen Gee, Peter Pullinger and Doctors for Forests. In December 2006, it abandoned the claim against Greens MPs Bob Brown and Peg Putt.<ref>{{cite news |url=https://www.abc.net.au/news/2006-12-13/gunns-abandons-legal-action-against-greens-leaders/2153212 |title=Gunns abandons legal action against Greens leaders |date=13 December 2006 |publisher=[[Australian Broadcasting Corporation|ABC News Online]] |access-date=2007-06-11}}</ref> The other matters were all settled. A documentary about the case ''Defendant 5'' (by and about Heidi Douglas) has been shown on ABC and Al Jazeera.<ref>{{Cite web |title=Defendant 5 |url=https://www.defendant5.com.au/ |access-date=2023-12-15 |website=Defendant 5 |language=en}}</ref>

===Redevelopment of Triabunna Woodchipping Mill===
In 2011, online travel entrepreneur [[Graeme Wood (businessman)|Graeme Wood]] (Wotif.com) and outdoor wear entrepreneur [[Jan Cameron]] (Kathmandu) purchased the Triabunna Mill from Gunns for $10 million, out-maneuvering rival forest-related bids by providing prompt payment. Wood and Cameron, both wealthy environmentalists, planned to redevelop the site as an eco-friendly tourist resort or theme park. The instigator of the negotiations was Alec Marr, formerly head of the Wilderness Society. When [[Tony Abbott]] later became Prime Minister, he and [[Eric Abetz]] wanted to compulsorily acquire the mill for woodchipping. To forestall this plan, Alec Marr secretly recruited three ship welders and an electrician, and they smashed up the control room and other critical infrastructure, so that the mill could never be in operation again.<ref>{{cite web | last=Van Tiggelen| first= John | title= Timber! How Gunns and Tasmania's woodchip industry came crashing down | work= The Monthly | date= July 2014 | pages=18–29| url=https://www.themonthly.com.au/issue/2014/july/1404136800/john-van-tiggelen/destruction-triabunna-mill-and-fall-tasmanias-woodchip- | access-date=8 September 2019}}</ref>

===Insider trading===
In August 2013, the former [[CEO]] John Gay, who had presided over much of Gunns' latter years (1986 to 2010) including its disastrous demise, was convicted of [[insider trading]] relating to his sale of company shares in December 2009 just prior to a shock announcement of a half-year profit collapse of 98%.<ref>{{Cite web|url=https://www.examiner.com.au/story/4495574/the-rise-and-fall-of-gunns/|title=The rise and fall of Gunns|date=28 March 2017}}</ref>

==See also==
{{Portal|Australia|Companies}}
*[[Forestry in Tasmania]]
{{Clear}}

== References ==
{{Reflist}}

==Further reading==
* {{cite book | author = Lyons, Brendan | year = 1998 | title = All Gunns blazing: J. and T. Gunn and the development of Launceston, 1871-1997 | location = Launceston | publisher = Foot and Playsted | isbn = 0-9585990-6-8}}
* {{cite book | title = Woodchips, lawsuits and democracy : a discussion of issues relevant to Tasmania in 2005 | year = 2005 | location = Sandy Bay, Tasmania | publisher = Now We the People}}
* {{cite book | title = Gunning for change : the need for public partication law reform | author = Greg Ogle | year = 2005 | location = Hobart | publisher = Wilderness Society}}

== External links ==
* [https://web.archive.org/web/20081220145318/http://www.gunns.com.au/ Gunns Limited ]
* [http://www.gunnspulpmill.com.au/ Pulp Mill Project] {{Webarchive|url=https://web.archive.org/web/20070911071535/http://www.gunnspulpmill.com.au/ |date=11 September 2007 }}
* [http://www.sourcewatch.org/index.php?title=Gunns Gunns] on SourceWatch
* [https://web.archive.org/web/20110310095033/http://www.wilderness.org.au/campaigns/gunns-pulp-mill/ Gunns Limited] overview from The Wilderness Society.

{{Authority control}}

[[Category:Building materials companies of Australia]]
[[Category:Timber industry in Australia]]
[[Category:Companies based in Tasmania]]
[[Category:Renewable resource companies established in 1875]]
[[Category:Defunct forest products companies of Australia]]
[[Category:Tasmanian forests]]
[[Category:2013 disestablishments in Australia]]
[[Category:Renewable resource companies disestablished in 2013]]
[[Category:Australian companies established in 1875]]