Gunns chairman John Gay will announce today that he will stand down, the Australian Financial Review reported this afternoon.

A company spokesman was not immediately available for comment.

Gunns shares ended the day up 1 cent, or 2 per cent, to 52.5 cents.

Gunns posted a 99 per cent profit drop in the half year to December 2009, to $420,000, on revenues of $325.9 million, according to Morningstar, amid tougher trading conditions.
 
The company has struggled for several years to complete a controversial $2.2 billion pulp mill project in northern Tasmania, which has outraged environmentalists and been slowed by difficulties securing investors.
 
Earlier this week, two Tasmanian Greens, who have opposed the pulp mill, were sworn into the Tasmanian Labor government’s cabinet.

BusinessDay