Woodchipper Gunns Ltd has agreed to acquire the Bell Bay softwood sawmill formerly operated by Forest Enterprises Australia Ltd (FEA) in Tasmania. Gunns also said on Monday that it would progressively close down its Scottsdale softwood sawmill in Tasmania within four months. Gunns had assessed the softwood sawlog volume available to the Scottsdale mill and the mill's operating cost structure and concluded that it was unviable in the short and long term and unsustainable as a continuing business. But the Bell Bay softwood sawmill was a modern, low-cost facility, which would provide benefits and cost savings through the processing of the combined FEA and Scottsdale softwood sawlog volumes at the one facility. The combined facility will process about 450,000 tonnes of sawlog annually, with projected annual revenue of $85 million.