Detmold is blaming high operating costs in Australia for its decision to move the bulk of its carton converting operations from its Brompton, Adelaide, manufacturing plant to Asia.
The family-owned company, founded in 1948 and with manufacturing facilities in Australia, Indonesia, China, South Africa and Vietnam, was quoted in the Adelaide Advertiser as saying the move would result in the loss of 43 jobs at its South Australian base.
"Due to the high operating costs existing in Australia, locally owned packaging company Detmold Group will relocate the majority of its carton converting machinery from its Brompton manufacturing plant to one of its wholly owned Asian facilities," the company said.
"This will result in up to 17 positions no longer being required. Furthermore the tough economic conditions have forced Detmold to determine that up to 26 positions within its paper converting operations are also no longer viable.”
The company employs around 260 people in Australia, and close to 3000 worldwide.
Detmold group executive Australia & New Zealand Sascha Detmold Cox said that while the company would continue to manufacture in Australia, tough trading conditions meant it needed to trim back its activities.
"Detmold is committed to retaining a sustainable manufacturing presence in the Australian market, but sadly and frustratingly the current economic climate is making this more difficult to achieve and we have been forced to consolidate," Detmold Cox was reported saying.
"Our paper converting plant is well and truly cemented in South Australia, ensuring that the Detmold Group continues to provide quality products and service to our customers.
"We can be proud that our remaining Brompton operations continue to be viable in such a trade-exposed global industry."
In response to union concerns about the job cuts, the company issued a statement on Friday afternoon and told PKN it was open to discussions.
“In relation to the 43 redundancies announced yesterday, the Fair Work Commission has provided a framework for the Detmold Group and the unions to continue the consultative process,” Detmold said.
“In relation to this issue, Detmold has always been, and is willing to continue this open communication between its employees and the Unions.
“Further to this all affected employees will receive full entitlements.”
Detmold's group marketing manager, Tom Lunn, reiterated the company's desire to be open in its dealings with workers and its business partners.
“Detmold is committed to transparent and proactive communications, first and foremost with our people, but also with the unions, customers and suppliers,” he said.
Detmold will move some of its manufacturing operations in Adelaide to Asia as economic conditions hit its costs in Australia.
