The newly appointed chief executive of Tasmanian timber company Gunns told media on Wednesday that recent interest sought by foreign investors spells a good sign for the company.

Greg L'Estrange has given his first television appearance since former chief John Gray cut all ties with the company last night due to pressures from the dissatisfied shareholders.

Gunns shares dropped to 26 per cent recently after the company booked a 98 per cent fall during its half yearly profit, however, the stock now turned stable since Mr. Gray resigned.

Gunn's shares yesterday closed at 46 cents.

"I think the company is moving more away from conflict as a means of resolving issues to, how do we actually sit down and work for resolution," he said.

Meanwhile, Tasmanian Premier David Barnett reaffirmed the State Government's support for Gunn's pulp mill proposal in northern Tasmania.

When asked by a representative from the Greens Unions if the Government will support the project and public funds will be released, Mr. Barnett replied that the government only wants to extract value out of the harvested trees.

He did not mention any financial support for the project and asserted that a world class technology pulp mill is needed in the area and must be supported.