http://news.ninemsn.com.au/article.aspx?id=60389
ZitatAlles anzeigenMitsubishi to close SA plant in March
Tuesday Feb 5 19:59 AEDT
Mounting losses and declining large car sales have forced the closure of Mitsubishi's Australian manufacturing operations with the loss of 930 jobs.
President and chief executive officer Rob McEniry delivered the grim news to workers at the Tonsley Park plant in Adelaide on Tuesday after the company's Australian management team submitted a recommendation to the Japanese head office last week.
The decision was confirmed by a meeting of the Mitsubishi Motors Corporation (MMC) board in Tokyo.
The plant will produce its last 380 sedan on or about March 31, with workers to receive all their full leave and redundancy entitlements.
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The company has also pledged to pay back a $35 million loan from the South Australian government that was provided in 2002 to help develop the 380 mid-sized model.
Federal Industry Minister Kim Carr said Mitsubishi workers would receive a $50 million assistance package to be jointly funded by the state and federal governments.
The package will include up to $10 million for intensive assistance to workers and a $40 million fund to strengthen South Australia's manufacturing base, Senator Carr said.
Mitsubishi says it also will work closely with government agencies to provide counselling, job seeking, retraining and other support services.
Mr McEniry said the decision to close the plant was "heartbreaking" but he believed the company had explored every possible option to keep it running.
He said Mitsubishi Australia had sustained accumulated losses of more than $1.5 billion over the past 10 years.
At the same time the large car market had declined significantly, while the strength of the Australian dollar had impacted on the viability of exports.
"All of this left the management of both MMC and Mitsubishi Motors Australia to conclude that the only viable, commercially responsible and the only sustainable future for the brand in Australia ... was to pursue a full import business strategy," he said.
"This joint decision was reached with much reluctance.
"However, in an ever-changing world it has been forced upon us as a commercial imperative by virtue of shifting consumer preferences and global economic factors.
"We can see no path for a return to viable production levels of the 380 sedan or a commercial case for developing any replacement production.
"This has been a very difficult decision."
Workers outside the Mitsubishi plant told reporters the closure came as no surprise.
"We kind of expected it, but it's come sooner that what we thought," one worker said.
He said the workers' meeting with Mr McEniry was "pretty emotional".
"The boss (Mr McEniry) was pretty upset, it's not his fault, he's done his best."
Australian Manufacturing Workers Union (AMWU) national secretary Dave Oliver said the union was "extremely disappointed" with the decision to close the plant and described it as a wake-up call for the rest of the automotive industry.
Mr Oliver said the federal government should sit down with unions and stakeholders to map a 20-year plan to "sustain manufacturing in this country".
The plan needed to identify what vehicles would be driven in 20 years time and determine that Australia should build and export those cars, he said.
"We just can't leave it to the market to determine," he said.
"That's why it's important that the new Labor government gets together with the major players to put a plan together for the automotive industry."
The AMWU also called for the Mitsubishi site to be retained as a manufacturing hub in Adelaide.
The Federal Chamber of Automotive Industries (FCAI) said the Mitsubishi closure would have a significant impact on the Australian manufacturing sector.
"The plant closure will be keenly felt and very difficult for the company and its employees," said FCAI chief executive Andrew McKellar.
"Today's announcement highlights the intensely competitive environment in which all Australian motor manufacturers are operating.
"There has seldom been a greater need to demonstrate the commitment of all stakeholders in the industry to its ongoing success."
South Australian Premier Mike Rann said the overriding priority for the state government would be to help Mitsubishi workers.
"I'm extremely disappointed with the decision this afternoon, following our strong representations to the company over many years, including during talks with senior management yesterday, and given the significant assistance provided by state and federal governments over recent years," Mr Rann said.
"Through difficult times, Mitsubishi workers and their unions have shown remarkable and unwavering loyalty to the company.
"I expect Mitsubishi to repay that loyalty by joining with us in making it a priority to find work for its highly-skilled workforce."
Mr Rann said the government had already provided the company with a letter of demand for repayment of its $35 million loan after it breached the agreement to maintain its local assembly operations until at least the end of 2010.