Gunns reels as Japan paper mills shut

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This was published 13 years ago

Gunns reels as Japan paper mills shut

By Paddy Manning

Tasmanian forestry company Gunns shares slumped as much as 14 per cent this morning amid concern about the impact of closure of a number of paper mills in Japan, managed by one of the company's biggest customers, Nippon Paper.

Gunns shares were recently trading down 6 cents, or 10.7 per cent, at 50 cents.

A Nippon Paper statement on Saturday confirmed shutdowns at the Ishinomaki Mill, Iwanuma Mill, Nakoso Mill, Fuji Mill and Nippon Daishowa Paperboard's Akita Mill. At Ishinomaki there was unconfirmed information that an employee was injured, but elsewhere the damage appeared to be limited to the plants, equipment and stock.

The Kushiro and Hokkaido mills were undamaged.

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The statement noted damage in Sendai Port and Tokyo-Ariake Port but said Nippon Paper's other mills were undamaged and continued to operate.

Gunns derives up to half of its revenues from exporting woodchip to Japan.

A spokesman for the company said it was too early to determine any impact on its customers.

Gunns had an employee in Japan who was safe and was meeting with Japanese customers today, he said.

paddy.manning@fairfaxmedia.com.au

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