MORE than 100 employees at an Adelaide car component manufacturer will lose their jobs after being made redundant.
American-based car component producer Cooper-Standard Automotive is to close its factory at Woodville North, with the loss of 116 jobs.
The company said its plant, which produces power steering and brake components and currently employs 136 people, would close over the coming months.
The factory’s GM, John Thomas, blamed reduced customer demand and shrinking margins for the closure but stressed that all employees will receive their entitlements.
“Ultimately we’ve reached the decision based on several factors, but ultimately our profitability and the losses that we’ve sustained in this business we can no longer sustain those losses,” he said.
“The environment’s been in decline over a significant period. This has deteriorated sales revenue and margin.”
“I am saddened that we must close a plant that has a loyal workforce and a long history here.”
Justin Hanson from the Australian Workers Union (AWU) says the closure of the factory is another blow to light manufacturing in South Australia.
“Our main concern is with light manufacturing in SA. It’s just continuously going downhill and no-one’s going to put their hand out to help it,” he said.
“It’s just further proof in the AWU’s mind that light manufacturing is a rust bucket in this state and once again we see the bottom falling out of the rust bucket in terms of jobs and an ability for people to have light manufacturing in SA.”