Timo Piilonen appointed to manage Australian pulp mill project
Timo Piilonen, formerly with Metsä Botnia and project manager during the construction of Botnia's Fray Bentos pulp mill in Uruguay, now owned by UPM, has been appointed to manage the planned pulp mill project on the south Australian island Tasmania."We have appointed Timo Piilonen to manage the project. He has built and operated similar mills around the world," the Chairman of the Board of Gunns Ltd said at the Annual General Meeting of Gunns today. "Using the resources and expertise of Timo Piilonen, we have reviewed the technical specifications of the planned Bell Bay pulp mill and continue the process.""The financial outlook for the project is strong, the project is globally competitive in the growing Asian eucalyptus pulp markets, and the facility, as proposed, will be one of the most environmentally controlled facilities in the world," Greg L'Estrange, Managing Director of Gunns, said in his speech at the Annual Meeting.Swedish Södra is one potential partner in the Tasmanian pulp mill project. It was expected that Gunns might announce their preferred joint venture partner at the Annual General Meeting today, but, according to the Chairman, the due diligence process has taken much longer than anticipated. "However," he said, "the most pleasing outcome is that our potential partners have confirmed the soundness of the underlying business case."It is Gunns' objective to hold a minimum 51 percent of the equity in Southern Star Corporation, which is the company that will own and operate the mill.