Industry says sawmill closure shows forestry woes
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The forestry industry says the closure of a sawmill in Yarloop is a clear indication the sector is struggling.
Gunns Limited will close its Yarloop sawmill in 10 weeks, blaming the high price of Jarrah and a decline in the quality of the wood for making its operation non-viable.
The Australian Workers Union says the 29 workers at the mill are in disbelief and uncertain about their futures.
The executive director of the Forest Industries Federation, Bob Pearce, says the industry has been in poor shape since new regulations were brought in four years ago.
"The problem has been for quite some time now. Ever since the new forest management plan basically, the industry has struggled for viability because of the very poor quality and the very high cost of logs which are coming into our mills," he said.
"People have not been operating profitably in all cases and Gunns certainly have struggled."
