Australian yarn manufacturer to sack 49 workers; 20 to go by Christmas

Australian wool manufacturer Australian Country Spinners (ACS) will cut 49 manufacturing jobs at its Wangaratta facility in Victoria by February 2012; with 20 to go by Christmas.

ACS executive chairman Brian van Rooyen said the decision to reduce manufacturing staff numbers was made to ensure the company’s business future in Australia’s declining manufacturing sector, The Border Mail reported. 

The company will seek voluntary redundancies before issuing redundancies

ACS manufactures industrial yarn qualities in natural or dyed form for machine knitting and weaving. The company produces a range of the Wangaratta site makes a range of single and two-fold yarn counts from 9Nm to 30 Nm for use by Australian and international clients.
 
The company will reportedly shut down its spinning operation. The company’s dying, finishing, distribution and warehousing operations will continue.

In 2008, the company sacked 33 workers at the Wangaratta factory, the following year it sacked another 24. ACS currently has approximately 115 employees.

Australia’s textile, clothing and footwear manufacturing industry has been struggling for some time due to exchange rate movements on exported goods and tight competition from Asia.

In October this year, Godfrey Hirst announced that it will close its yarn making factory leaving 37 workers jobless.

The carpet and rug manufacturer has been slowly reducing the size of the Benalla site over the past 12 months by cutting back shifts and making some redundancies to keep the factory afloat. However, these changes made little difference for the carpet maker in the current economic and industry climate.

The closure is a result of a continuing decline in demand for wool carpets and increasing demand for synthetic carpet, largely driven by a high Australian dollar and higher price of wool.

Image: Australian Country Spinners (ACS)