gunns welcomes local business over pulp mill

MEDIA RELEASE6 July 2011 GUNNS WELCOMES LOCAL BUSINESS OVER PULP MILL PROSPECTS
Gunns Limited today spelt out its local procurement policy and expectations for sourcing local suppliers to help build its $2.3 billion pulp mill at the Bell Bay site. Around 200 local and regional goods and service suppliers attended an open day at the site. The event was organized by the Launceston, George Town and West Tamar Chambers of Commerce on behalf of their members. Gunns? Managing Director Greg L?Estrange told local business people that Gunns was committed to using local suppliers wherever possible, and welcomed their part in building a world-class pulp mill. ?We have done a lot of hard work setting the standards needed to meet community and regulatory expectations, and the suppliers we draw on will play a big part in meeting those expectations with us.? ?We will be uncompromising on our demands on health, safety and environment, and in living up to our promise of the Bell Bay pulp mill being among the most modern in the world.? Chamber members were provided with a draft Economic Development Plan (EDP), commissioned by Gunns to identify opportunities for maximising the benefits of the mill for the local business community. The EDP also looked at mitigating any potential adverse impacts on other local industries, such as viticulture and aquaculture. Mr L?Estrange said that the EDP, which is out for public consultation until mid-August, is aimed to ensure the maximum benefit flowed to local businesses. ?That has to be good for our local communities, for George Town and the whole Tamar Valley,? he said.

Under the draft Gunns Procurement Policy:

? Gunns committed to giving priority to local suppliers
? Higher priority would be given to suppliers from within George Town, West Tamar and Launceston local government areas
? Suppliers that met the stated criteria of supply would be given priority for ?like-for-like? services from outside north-east Tasmania
? Gunns would develop a supplier database and clear selection process guidelines.
Mr L?Estrange told members at the briefing that the pulp mill was potentially a turning point in the Tasmanian economy and how it views itself as a state. ?We have the chance through this significant project to show Tasmania and would-be investors in Tasmania that there doesn?t have to be a trade off between jobs and the natural values that Tasmania rightly wants protected,? he said. ?You can have both. And navigating the path through what seem like competing interests is what Gunns as a modern company has set out to do.? Earthworks were expected to begin at the Bell Bay site in August and operations expected by early 2014.

More detail on the draft EDP and the Procurement Policy can be found at: www.gunnsblog.com and www.gunns.com.au. Contact Company: Greg L?Estrange ? 03 6335 5211 Media: Matthew Horan ? 0403 934 958