gunns pulped

Taking stock of the pulpless state of the pulp play at the end of 2010 it can be said that Australia continues to miss the action and returns for investment for a pulp deal in this country . If we look just at the ADDITIONAL demand for BHKP over the next 2 years to 2012 this is 4.4M tons of BHKP . The total of committed investment expansion in South America and Asia is 2.3 million tons. Mainly in Chile,Brazil,Uruguay , China,ROK & Indonesia. There is a deficit of about 1.8 million tons of BHKP upto end of 2012.
China alone has plans for 4.5 million tons of magazine grade paper requiring about an additional 3.3 million tons of additional pulp capacity incl BHKP.
There will be no world scale pulp mill operative in Australia before 2014 - 15 on the basis of the current state of Gunns disasterous mismanagement of this investment. The result is that also Australia is now a dumping ground for BHKP containing magazine papers which are currently being dumped from Europe and Asia into Australia at $200 below production costs.
One factor that large scale BHKP investments have in common in China,Brazil.Uruguay and Chile is large scale state investment subsidies for billion dollar projects.Australia should join this club and send a billion or so from the NBN fiasco to the green renewable pulp mill deal - put next to the sawmills at Bell Bay and with a couple of large paper machines . All up 2 billion and we start massive import replacement for the balance of payments and end the subsidization of the added value paper production in China. If Australia does not move soon I guarantee that Brazil will be sending us the subsidized paper within 10 years and a pulp mill alone here will be a sitting duck.