THE strength of the Australian dollar has been blamed for forcing a major company to shed 17 workers from its Laverton North factory.
Amcor, the self-proclaimed world leader in packaging manufacturing, announced last week that it closing one factory and making significant changes at another.
Nigel Garrard, Managing Director of Amcor Australasia, said that Amcor would make changes to its Beverage Closures business in Victoria as part of a program to realign its Australian operations to the challenging conditions facing all Australian manufacturers.
A Thomastown manufacturing site is anticipated to close mid-year, resulting in approximately 80 redundancies, and changes at the company’s Laverton North site will see a further 17 redundancies.
“Significantly increasing cost pressures and the continued strength of the Australian dollar have made it impossible for these sites to remain competitive,” Mr Garrard said.
“While I regret that these changes will see a number of co-workers leave the business, we must transform our Australian operations in order to remain a viable business for the long term.”
The announcement came just days after Prime Minister Julia Gillard launched a $1 billion initiative to create jobs in her electorate of Lalor and the rest of Australia.
Ms Gillard said Labor’s Plan for Australian Jobs would help Australian industries win more work at home and overseas, as well as assisting small local businesses to thrive and grow.
“Our plan will help local manufacturers get more work from major projects at home through Australian Industry Participation (AIP) arrangements. We will also support local industry to increase exports and win new business overseas,” Ms Gillard said.
“Our plan will mean more work for local factories, construction sites and our services industry.”
