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Gunns Ltd (ASX:GNS) says it will close its Deanmill Jarrah sawmilling site in south-west Western Australia after having made every effort to continue.
The forest management company advises it has no other viable option to close Deanmill, having been unable to reach any agreement after talks with several possible buyers.
Gunns says the state government's restructure of the timber industry in 2004 resulted in a lower grade of log being received coupled with a significant rise in costs.
The company was also impacted by the volume and price of imported timber products coming into the local market.
The mill will close on 18 February and 44 employees will be made redundant.
In the 2010 financial year Gunns delivered a net profit of $28.49 million.
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