Södra involved in controversial investment in Tasmania

August 8, 2010 by timbercommunity

Södra may be involved in a debate on the environment outside of Tasmania Australian news program "Rapport" reports in the Swedish Television. In Tasmania, one company is now building the world's largest pulp factory and Södra wants to cooperate. Construction plans have  upset many people in Tasmania since the island also has valuable and ancient forest. The debate has raged for more than five years and divided the population into two camps. Some hope for new jobs, but many are afraid forest and natural resources will  be destroyed.

"We discourage investors from supporting the project in its current form. Factory may destroy the Tasmanian forest if you do not make big changes, "said Paul Oosting from the Wilderness Society.

Gunns Ltd., Australia's largest exporter of timber into pulp, now looking for investors for a new pulp factory in the Tamar Valley.
The company Gunns, however, claims that no trees will be felled. "Our operations will be based entirely on plantation forest," says Frances Duffy, sales manager at Gunn.

Hard to find financing
But the company has found it difficult to finance the building. Politicians have been accused of bribery, and none of Australia's big banks wanted to help in this project. Sweden's largest forestry company Södra, however, has no objection to start cooperation with Gunns.

"We know very well what we ask for the requirements on technology, environment and forestry activities," says Leif Brodén, CEO of the Södra. He also says that they will ensure that Gunns complies with the requirements of Södra.