A Tasmanian development group waiting to receive a federal grant has lost its bid to buy Gunns’ former sawmill at Scottsdale in the north-east.
The Dorset Renewable Industries group was promised $ 2.8 million in forest peace deal funding to develop an integrated timber processing hub at the Ling Siding site.
Gunns’ receiver Korda Mentha has announced the asset has been sold but it will not name the new owner or disclose the sale price, saying that is up to the successful bidder.
A spokesman says the receiver accepted the highest unconditional offer after extending the deadline for by six weeks to give the development group a chance to secure the Commonwealth funding.
David Hamilton of the Dorset Renewable Industries group says it is disappointing.
“Unfortunately the uncertainties about our grant and its timing were the things that got in the way of our being successful,” he said.
“But still we have been promised a grant, we are hoping to proceed with our plans.”
The Dorset Mayor, Barry Jarvis, says it is unclear how the new owner plans to use the mill.
“There is no indication that there’ll be 40 jobs created so obviously that’s a disappointment to the community, so not knowing and the unknown is probably the worst part about it,” he said.
Mr Hamilton says the group will try to find a different site for its proposed timber processing hub.
It is still not known when the peace deal money will be delivered.
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