CAR PARTS MAKER ACL BEARING TO CLOSE, 136 JOBS AXED
Resource from: Yahoo!7 News Likes:228
Jul 31,2013
Receivers for the Launceston car parts manufacturer ACL Bearing are closing the struggling business after failing to secure a buyer.
It means the remaining workforce of 136 will be out of a job by mid next year.
In 2009, 110 workers lost their jobs when ACL went into receivership.
The company has continued to operate, but another 35 workers were sacked in 2011 and 20 lost their jobs in July last year.
Receiver Matt Byrnes says there was initial optimism the business would be sold after an exhaustive sales campaign.
"Unfortunately despite negotiations with a number of short listed parties, none of those parties were able to put forward an offer for the business as a going concern here in Tasmania," he said.
"I don't think there's any one factor.
"I think certainly the location of the business in Tasmania and the currency, Australian dollar against the US which has obviously been strong was a factor.
"ACL exports about 80 per cent of its product so we've been fighting the currency battle for the last couple of years."
The troubled company was on the market for three months.
Mr Byrnes says there was no option but to close the business.
"Employees took the news pretty well, I think some of them will have anticipated that outcome."
The Australian Manufacturing Workers Union's John Short says while it was not totally unexpected, it is still a very sad day for employees.
"Obviously we'll be calling on the state and federal government to do what they can to maybe provide some retraining for some of those workers to find them other jobs," he said.
He says the workers will be supported.
"Because they deserve it."
The average length of service for the workers is 20 years.
The receiver says the Federal Government has confirmed entitlements will be paid under its scheme for workers whose employer goes bankrupt.
Political fallout
The Opposition Leader, Will Hodgman, says it's a bad look for the economy.
"The fact that the receivers have not been able to secure interest in this plant would be as much about Tasmania not being an attractive investment destination," he said.
"That is sadly an all-too familiar theme under the Labor-Green government."
The Economic Development Minister, David O'Byrne, says ACL is closing for reasons outside the Government's control.
He says the receivers have told the Government it could not have done anything more keep the business afloat
Launceston's Mayor says the closure of ACL Bearing will have a significant impact on the city.
Alderman, Albert van Zetten, says it means the city will have to create new industries to employ its residents.
"And that's going to be the modern industries, working with the computers, technology, the NBN roll out is part of that and I think it's something that we need to continue to work with."
ACL Bearing's announcement follows news that 50 workers at Australian Weaving Mills in Devonport will lose their jobs when the towel manufacturer moves to Victoria.
The region has been hit by other manufacturing job losses in the past three years with the closure of paper and textile factories, among others.
(Yahoo!7 News)
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