Fed: Fed and Tas govts join multi-million dollar bailout for ACL

AAP General News (Australia)
04-07-2008
Fed: Fed and Tas govts join multi-million dollar bailout for ACL

By Melissa Jenkins

CANBERRA, April 7 AAP - The federal and Tasmanian governments will join major car companies
in rescuing a parts manufacturer whose financial troubles have threatened to shut down
the industry.

Launceston's ACL Bearings is the only supplier of precision auto bearings to Ford,
Holden and Toyota.

ACL, along with parent company - Australia's largest independent distributor of automotive
parts, National Parts, - are under administration.

Ford, Holden and Toyota are providing ACL with a rescue package worth an undisclosed sum.

Industry Minister Kim Carr said the Rudd government would chip in $2 million, while
the Tasmanian government would contribute $330,000.

He said the rescue package would allow ACL to trade out of its "acute liquidity problem"

and allow it to clear its debts.

"Some of the bigger companies only had five days supply (of parts) on hand," Senator
Carr told AAP.

"These are exceptional circumstances which require urgent measures to prevent an industry
wide shutdown with ... tens of thousands of layoffs."

ACL would be required to implement an efficiency and productivity strategy to secure
the viability of the company into the future, Senator Carr said.

Tasmanian Economic Development Minister Paula Wriedt said ACL Bearings made a significant
contribution to the economy, and the package would give the company's 285 staff the security
they needed to get on with the job.

Federal Chamber of Automotive Industries (FCAI) chief executive Andrew McKellar welcomed
the federal and Tasmanian governments' support for ACL.

"The move is a pragmatic response to what is a short-term and exceptional circumstance
that a key manufacturer to the Australian automotive industry is experiencing," he said.

"This financial support recognises the regional significance of the company and the
importance ACL plays as part of the Australian vehicle manufacturing supply chain."

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KEYWORD: ACL

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