Sources close to the situation said that Shandong Bohui Paper Industry Co., Ltd. is one of the many Chinese buyers interested in the acquisition of Bell Bay and Tarpeena sawmills from Gunns Ltd. It is reported that last week, there were active discussions between Gunns and Shandong Bohui Paper for the potential acquisition and a heads of agreement had been signed. A source said, "Shandong Bohui Paper and Shandong Sun Paper have both been looking at assets outside China. Bohui has been the company that has been most active." Will Hodgman, State Opposition Leader told The Australian Financial Review, "The important issue is getting the mill up and running and we would welcome Chinese investment.

China is our fastest growing market."