The smart money is investing in world class pulp mills in Brazil and Uruguay .Chile even with the earthquake premium is a better bet than Tasmania for pulp and paper investment.
To understand how Australia has missed the boat on moving large pulp and paper mill projects in an international environment which is closing down huge capacity in Europe and North America just look at teh latest announcement out of Brazil with the announcement of another 1.5 MTPA pulp mill project for Eldorado Celulose e Papel in the Matto Grosso !!! this time .
With disfunctional companies like Gunns which should have never left the hardware and timber business the international pulp and paper companies realize Australia is a market for their products to the tune of over $ 2 billion per annum so why should they risk funds with small time amateurs like Gunns .
The best alternative for shareholders is for a takeover of the set up and kick out the board and restart the whole show in Tasmania with pulp and paper investors who know the business and can get a nice return on the import replacement market in Oz . Best prices in the world and rising .
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