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Manufacturing Update 11

by Scott Logan

Manufacturing Update

Vacancy central coast site to rise again as Tip Top Factory, creates 100 new jobs

  • Tip Top has announced that it has purchased and will re-open the former Kellogg’s Australia site at Charmhaven, creating as many as 100 new jobs.
  • The vacant 25,000 square metre site would be refurbished and integrated into Tip Top’s bakery and distribution network, which includes 11 other factories in Australia (three of these in NSW).
  • “Tip Top is already a key employer in New South Wales and a strong contributor to its economy – we take great pride in this,” said Tip Top Australia managing director Andrew Cummings in a statement.
  • The site was opened in 2000, before Kellogg’s announced its closure in December 2013 and shut it down in January last year.
  • Wyong Shire’s mayor Doug Eaton called the news of the factory’s re-opening a “tick of approval” for the area.
  • “This investment is recognition of the strategic position of the Central Coast to enable food and beverage companies to produce and distribute their products,“ added Eaton.

Source: Manufacturing Monthly

Carbon revolution opens new fibre wheels manufacturing facility in Geelong

  • Carbon Revolution opened a new manufacturing facility in the Victorian city of Geelong yesterday where it intends to make carbon-fibre wheels for the new Shelby GT350R Mustang.
  • The new manufacturing facility is located near the Carbon Nexus site of Ford’s carbon-fibre research with Deakin University.
  • Speaking at the official opening ceremony, Minister for Industry, Innovation and Science the Hon Christopher Pyne MP congratulated the Australian owned company on commercialising its high tech products.
  • “Carbon Revolution is a modern Australian success story demonstrating the power of applying research and advanced manufacturing technology to develop world leading products,” Mr Pyne said.
  • “The success of companies such as Carbon Revolution means more jobs for the Geelong region as seek to grow advanced manufacturing and other emerging industries,” Ms Henderson said.

Source: Australian Manufacturing 

Toyota recall affects nearly 100,000 Australian RAV4’s

  • Almost 98,000 RAV4 Toyota vehicles in Australia have been recalled due to a seatbelt issue affecting 2.87 million of the cars globally.
  • AAP reports that the vehicles were built between August 2005 and November 2012. They could potentially see damage to part of the seat belt in the second row, leading to a failure to restrain the passenger.
  • "There is a possibility that, in the event of a high-speed frontal collision, the seat belt webbing could contact a portion of the metal seat cushion frame, become cut and separate," Toyota said in a statement.
  • There have been no injuries in Australia due to the issue, according to the company.
  • Fairfax reports that the recall affects 2.87 million vehicles globally. 1.3 million were in North America, 625,000 in Europe, 434,000 in China, and 177,000 in Japan.
  • The company will repair the fault by adding resin covers to the metal seat cushion frames, with this expected to take an hour per car, "depending upon the Dealer's work schedule".

Source: Manufacturing Monthly

Kimberly-Clark brings Snugglers manufacturing back in Australia

  • Personal care product manufacturer Kimberly-Clark Australia announced the relaunch of Snugglers® Nappies on Woolworth’s shelves.
  • The company also announced that it has moved the production of Snugglers® Nappies back to Australia, which from now on will be manufactured at Kimberly-Clark’s plant in Ingleburn, Western Sydney.
  • “The news of Snugglers® Nappies now proudly being made in Australia again follows the value brand’s recent Canstar Blue Award Win,” the company said in a press release to Australian Manufacturing.
  • “In 2015, Snugglers® value range was rated No 1 for Overall Satisfaction by Canstar Blue. Snugglers® came in strong overall, with the list of accolades also including 5 Stars for both Fit and Leakage Prevention too.”

Source: Australian Manufacturing 

Labor pushes for local steel procurement for government projects

  • Federal Opposition leader Bill Shorten has urged the government to use local steel in public projects to assist in the survival of Arrium’s Whyalla steelworks.
  • The ABC reports that a letter from Shorten also insists that an inquiry on the dumping of Asian steel, due to be delivered in April, be sped up.
  • "Had your Government acted on this issue four months ago when Labor first raised these issues, your Government would now be proposing action rather than further reviews," a letter to prime minister Malcolm Turnbull reads, according to the ABC.
  • The South Australian government – which requires public projects in the state use certified local steel – has urged NSW and Queensland state governments to adopt a “buy Australian first” approach.
  • "There are multiple problems, the cheap dumping of steel which is really hurting Arrium,” SA treasurer Tom Koutsantonis said yesterday.
  • "There are procurement policies around the country that are hurting Arrium.”

Source: Manufacturing Monthly

Aggressive cost-cutting to continue as Bluescope profit more than doubles

  • Bluescope Steel’s half-year profit has more than doubled to $200.1 million, with CEO Paul O’Malley saying the company’s “relentless” cost-cutting will continue in the second half.
  • According to The Australian Financial Review, revenue for the final six months of 2015 was $4.43 billion, up from $4.33 billion in the final six months of 2014.
  • AAP reports that earnings before interest and tax were up 35 per cent to $230.1 million.
  • Last November 500 jobs were shed at the company’s Port Kembla operation and workers accepted a three-year pay freeze. The NSW government also granted the steel company $60 million in payroll tax exemptions.
  • The pay freeze agreement was a big part of the cost reduction, and the focus on reducing costs in Australia and New Zealand was paying off, according to CEO Paul O’Malley.
  • “Our relentless focus on cost reductions in Australia must continue,” he said, according to Business Insider.

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