Press Release
FRN supply issue with Nylex resolved
Monday July 10, 2006
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NUW Victorian State Secretary Antony Thow
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Nearly 200 factory workers from Frankston are expected to return to work within 48 hours after Nylex decided to release vinyl product to rubber car component factory FRN late this afternoon.
FRN was owned by Nylex for more than 30 years, before being sold to Huon Corporation along with Empire Rubber in Bendigo and Mills Elastomers, late last year.
On June 30, Huon Corporation was placed in voluntary administration.
FRN has a contract to make door trims for the current model Holden Commodore for the next 18 months; however, Nylex was withholding supply of the core vinyl component, until an unsecured $1.4 million debt was paid.
Alternatively, Nylex had told administrators they could purchase further product for three times the current market rate.
Neither option was possible at this time, thus the 180-strong FRN workforce was stood down indefinitely this morning (Monday July 10, 2006)
However, late this afternoon an agreement was reached between Nylex and Holden for the former to resume supply of the vinyl to FRN for the time being.
NUW State Secretary Antony Thow was thrilled with the late development.
He said it was fantastic news for his members that commonsense had finally prevailed and that the crucial vinyl product would once more be supplied to FRN.
“We are thrilled that our members will be able to return to work. Our understanding is that a skeleton staff will return tomorrow, with full production beginning later in the week,” Thow said.
“We just hope Nylex will now work with the administrators (SimsPartners) and everyone else involved to keep this factory working, in an effort to sell it as a going concern and secure the jobs and entitlements of the loyal employees at the site.”
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Last modified 2006-07-10 05:29 PM
