gunns axes pulp mill executive, page-2

http://www.themercury.com.au/article/2011/01/15/200251_tasmania-news.html

Gunns chops senior ranks
NICK CLARK
January 15, 2011 12.01am

GUNNS has retrenched four of its senior pulp mill personnel but insists the $2.5 billion project is still on track.

The departures come as Gunns seeks a joint-venture partner for the mill, after the pullout of Swedish company Sodra last year.

A Gunns spokesman said the changes had come as the project moved from the assessment stage to the construction phase.

The company appointed a new pulp mill project director, Timo Piilonen, last year.

Long-serving general manager of the Bell Bay pulp mill project Les Baker is one of the major departures.

Others believed to have been retrenched are engineering and construction manager Sven Lundgren, pulp mill project commercial manager Neville Smith, and former commercial manager John Germano.

Mr Smith and Mr Baker would not confirm their departure from Gunns.

Mr Lundgren came from Sweden in 2005, saying "we have the best expertise from around the world to design, engineer and construct this mill".

He said he had been working with pulp mill design teams for 30 years in Europe, Japan, Brazil, Chile and the Asia-Pacific.

Mr Smith was the former manager of Gunns' veneer operations.

Gunns says the project has a "project ready" status and minimal cost is being incurred to maintain that position.

The company has so far spent more than $200 million on the project. The 2010 annual report listed Mr Baker's salary at $473,183.

The report also said Mr Baker had a $746,341 loan from Gunns on which he was paying interest of $77,424 a year. He had funds on deposit with Gunns in an unsecured note scheme.

Mr Baker sold most of his Gunns shares and on June 30, 2010 had a holding of 21,250.

Gunns is expected to close its Long Reach woodchip mill on March 31.