Carter Holt Harvey say log prices too highCarter Holt Harvey in Mt Gambier has given Forestry SA an ultimatum to strike a new contract or it will close four of its South Australian operations reports AdelaideNow. Issuing the ultimatum to the State Government this week, the company said it would close its four operations in Mt Gambier and Nangwarry if a new contract with Forestry SA was not struck.More than 1000 people are believed to be directly employed by the company.
In a letter to staff the company said it has demanded that the price it pays for logs to be lowered in return for an expansion of the mills and a commitment to buy more logs. Structural timber operations were continuing to lose money at current log prices. While the company did not specify a time frame for the closure of the mills, any new deal would need to be signed before the State Government sells Forestry SA. That deal is expected to be finalised by the end of the year, but some reports indicate a decision by Treasury is imminent.
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