Carmakers rescue Australian parts suppliers

By Kate Tilley

Melbourne, Australia -- Seven auto manufacturers, including Ford, GM Holden and Toyota, have agreed to a A$10 million (US$7.56 million) rescue deal to keep three Australian automotive parts businesses afloat.

Melbourne-based Huon Corp. had bought the three thermoplastic and rubber auto parts manufacturers - Mills Elastomers, Empire Rubber and FRN - from Melbourne-based Nylex Ltd. last year, before going into administration in July.

Workers from the Melbourne-based factories went on strike in mid-July after the administrator, Melbourne accounting firm SimsPartners, said it would cut 122 jobs to keep the business going.

During the strike, which ended July 26, the car manufacturers could not receive parts.

A National Workers' Union spokeswoman said carmakers agreed to place three-month-forward orders with Huon and accept a 12 percent price increase from the supplier.

From Plastics News (A Crain publication)