Kimberly Clark US, the parent company of Kimberly Clark Australia, will restructure its South Australian operations as a result of a global review, culling 170 permanent and 35 temporary jobs.
While the new plans will affects plants in a number of countries, 170 permanent and 35 temporary jobs will be cut from the company’s Millicent Mill in South Australia.
A further 65 jobs may be lost in October 2011 if a buyer for the Tantanoola pulp mill cannot be found.
Innovation Minister Senator Kim Carr said the Gillard Labor Government’s immediate concern is for the workers and their families, and attracting new investment in high-skilled jobs.
According to Senator Kim Carr, the Commonwealth in partnership with the South Australian Government will establish a new $17 million Innovation Investment Fund in South Australia, concentrating on the South East region, designed to help those affected find jobs.
“The focus of the fund will be on manufacturing and manufacturing services, and it will help create new sustainable jobs and opportunities for the region,” he said.
“The Australian Government will provide $10 million for the fund and the South Australian Government will provide $7 million.”
The Australian Government will also support displaced workers through Centrelink and Job Services Australia, Senator Carr says.
“I have been given assurance from Kimberly Clark that all affected staff will be paid their full entitlements and have access to outplacement and counselling services,” he said.
The South East South Australian Innovation Investment Fund will be available over the 2011-12 to 2012-13 financial years. It will be delivered through AusIndustry, the Department of Innovation’s program delivery division.