South Pacific Tyres To Close Plant** 600 Jobs To Go

[mustanger]

South Pacific Tyres are to close their Somerton manufacturing plant at the end of the year.
600 jobs will go.http://news.ninemsn.com.au/article.aspx?id=587388

It is a real shame that these manafacturing icons are closing and jobs are going overseas.

[saaz]

Probably is, but if people keep on asking for the best price on things it will not help. I don't think I have ever read a request for what tyres to buy based on being Australian made. Mostly it is how good, and what price.

[Hamico]

http://www.news.com.au/business/story/0,23636,23924710-462,00.html

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Factory closure to cut almost 600 jobs
June 26, 2008 09:12am

ALMOST 600 jobs will be lost when a tyre factory in Melbourne's outer north closes at the end of the year.

Workers were delivered the devastating news that South Pacific Tyres at Somerton - which has been the subject of speculation about its future - will close on December 31.

In a statement this morning, the company said all 587 employees' full entitlements under their collective agreement would be honoured.

Chief executive Judith Swales said the factory's viability had long been under a cloud, primarily because of its high operating costs and low volume capabilities to produce the types of tyres consumers were now buying.

"To put this in perspective, conversion costs ... are almost double that of our average plants overseas and almost six times that of our most cost-competitive plant," Ms Swales said.

"Despite the best efforts of our manufacturing workers and their improvements in the area of quality, safety and waste, the Somerton factory is still not cost competitive."

South Pacific, which produces Goodyear and Dunlop tyres, said it would work with the various unions as it prepared to wind down operations and also said the closure was "in no way related to any lack of support from federal, state or local governments".

"South Pacific Tyres respects the role of various unions in representing its workforce and will engage and collaborate with associates and their unions to ensure a smooth transition," Ms Swales said.

"South Pacific tyres recognises the potential economic and social repercussions of this announcement and will work with local and state governments as appropriate to ease its effect."

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[iamhappy46]

$20 says that the reduction in costs of the so called 'expensive plant' will not translate into cheaper tyres for the consumer ;)

Same pricing = better profits

[kpop]

this is unfortunalty just a sign of things to come. how about the qantas engineers strike. they want a 5% pay rise. qantas say 3%, unions say no, were having strikes. qantas say yeh watever, well get our planes serviced overseas then mate.

and nothing much you can do about it really

[RARASV8]

this is just as much as our own faults, howmany of us buy Goodyear tyres?
i used to work for a company that serviced the tyre moulds for SPC and they made us buy goodyear tyres b4 we were allowed onto the premisses, even our truck that transported the moulds. the closed down the LT tyre side back around 2002 and sent them ofshore to NZed. the wrighting has been on the wall for along time. they shut BA hamill back in 2001 or there abouts and they serviced all off the machinery for maintenance, they then closed Goodyear at Thomastown and moved some of the machinery and workers to somerton.
this will affect a lot more than the 600 or so workers they are saying. alot of tyres come out of here each day.
but we want cheaper tyres so the blame ends with us, the tyre buying public.

Garry

[German Statesman]

Our labour costs aren't competitive with those in the Asia area. Local bus & coach manufacturers are copping heaps from Thai bus makers under the free trade agreement, and we are no longer a manufacturing nation....

I wouldn't be surprised if with the falling Commodore and Falcon sales GM & Ford become importers like Mitsubishi....it will only be exports of those cars will keep them appearing in our showrooms, and Ford have no real export programme with the Falcon (not in the league of the Commodore anyway).

[VL Executive]

Not good news at all. Geez, soon nothing will be made here.


this is just as much as our own faults, howmany of us buy Goodyear tyres?


I supported them, and bought a set of Aussie made Goodyear Ducaro's for the VK. Sad to say it will be the last set of Australian made goodyear tyres it will get / roll on.