Ford to end manufacturing in Australia in 2016, cites high costs

23 May 2013 15:02  [Source: ICIS news]

LONDON (ICIS)--Ford plans to end local manufacturing in Australia in October 2016, mainly because of high costs, the US-based automaker said on Thursday.

Ford will close its two plants near Melbourne - Broadmeadows and Geelong - affecting 1,200 jobs, it said. The company recorded total losses of about Australian dollar $600m ($583m) in the last five years in Australia.

Car manufacturing is an important end market for chemicals and plastics. The American Chemistry Council (ACC) estimates that each automobile contains an average of $3,297 worth of chemicals such as acrylonitrile-butadiene-styrene (ABS), nylon, polycarbonate (PC) and others.

Ford added that despite the plant closures the company and its dealer network would remain a significant employer in Australia.

$1 = A$1.03)

Additional reporting by Mark Yost

By: Stefan Baumgarten
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