ACL Bearing Company Announces Its Restructuring Plan

ACL Bearing Company Announces Its Restructuring Plan This afternoon at Rocherlea at a meeting with all employees of ACL Bearing Company, the chairman and chief executive of ACL, Ivan James, announced a wide-ranging restructuring plan for the business. The new plan is focused on improving the competitiveness and profitability of the Company to ensure its long-term viability. Mr James said, ¡°The Company¡¯s financial performance in 2006 and its forecast for 2007 are unacceptable and unsustainable.¡± He told employees that, ¡°The Company had experienced considerable external pressures in recent years from tariff reductions, price reductions, the commodities boom, currency pressures, fuel price volatility and a tight labour market. These factors had restricted investment potential, and eroded the competitive position and profitability of the company.¡± ACL Bearing Company employs 390 at its Launceston facilities and will reduce its workforce to 300 within the next six months. The reductions will occur in three stages with the initial 30 retrenchments within the next week, 30 in May and the balance in August. Mr James said, ¡°We regret that it is necessary to take this action and we apologise to the employees who will lose their livelihood as a result of this decision. Whilst 90 people will lose their jobs in the next six months, this is necessary in order to safeguard the jobs of the remaining 300 people¡±