By Benjamin Millar
Nearly 100 more jobs are set to be lost from Melbourne’s western suburbs with Tottenham power cable manufacturer Nexans Olex to cease production before the end of the year.
A high Australian dollar and falling demand are being blamed for the decision to shut down operations and lay off 90 workers, with locally made products struggling against global competitors. The job losses follow gradual cuts at Nexans Olex over the past 12 months and come as thousands of western suburbs workers face employment oblivion in the face of ship-building and auto-industry closures.
Nexans Olex is Australia’s largest power cable supplier, employing more than 700 staff in Australia and New Zealand. Its human
resources and corporate affairs general manager John Thomson said the company would be doing the right thing by workers affected.
“Our immediate priority is to provide appropriate support to these employees,” he said.
A statement issued by the company indicated the exact timing of the Tottenham closure would coincide with completion of forward orders.
“Nexans Olex has taken this step to position the company for a sustainable and successful future in Australia,” the statement read. “Over the coming months, Nexans Olex will work closely with customers to ensure they are provided with the best cable solutions.”
The company’s Lilydale site and New Zealand operation are unaffected by the decision.
Mr Thomson said the Tottenham warehouse operations would remain in place, and sales, sales support, supply chain and technical and administration roles would mostly be unaffected.
“The Tot
tenham facility as such is not closing,” he said. “[However] the manufacturing of power cable products will not reopen at Tottenham. Manufactured products will be sourced from our Lilydale or New Plymouth [New Zealand] facilities or from Nexans-approved supply partners.”
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