IT is not yet known if the Kimberly-Clark Australia Millicent Mill and its 450-strong workforce of employees and contractors will survive the axe being wielded by its American owners on 10 of its 91 manufacturing facilities across the globe.
At least 5000 jobs will be cut as part of the biggest global restructuring of the Kimberly-Clark Corporation since 2003.
A spokesperson for the KCA corporate headquarters in Sydney said the three-year global restructuring program is intended to give the Kimberly-Clark Corporation the flexibility it needs to invest in growth opportunities.
“The company is not providing specifics on the status of any of our production facilities or the proposed job reductions, beyond what is detailed in the Kimberly-Clark Corporation press release, until final decisions are made and announced,” the KCA spokesperson said in a statement.
“The timing of those announcements will be determined by the needs of the business and appropriate consultation and/or negotiations with employees and unions.”
The Construction Forestry Mining and Energy Union Pulp and Papermakers division has 260 members at the Millicent Mill and its federal secretary Alex Miller also told The South Eastern Times the local impact – if any – was not yet known.
Mr Miller had heard from his sources in America the job losses would be evenly cut between staff and hourly-paid workers.
According to Mr Miller the identity of the 10 mills slated for closure had not yet been revealed to his sources.
“If the Millicent Mill was to be off-loaded by the company, we would be strongly arguing for it to be sold rather than shut,” Mr Miller said.
The Kimberly-Clark Corporation expects the restructure announced this week will generate annual pre-tax cost savings of around $550m by the end of 2021, driven by workforce reduction along with manufacturing supply chain efficiencies.
Under the 2018 global restructuring program, the company expects to close or sell approximately 10 manufacturing facilities and expand production capacity at several others to improve overall scale and cost.
The company expects to exit or divest some of low-margin businesses that generate approximately 1pc of company net sales, with the sales concentrated in the consumer tissue business segment.
It is also understood declining birthrates are affecting diaper sales around the world.
Kimberly-Clark Corporation chief executive Tom Falk said the changes would improve profitability, provide more flexibility in growth opportunities and help the company “compete even more effectively”.
Mr Falk said although conscious of near-term challenging market conditions, the company planned to deliver stronger results while implementing the new restructure.
The last major local restructure of KCA operations occurred in 2011 with the closure and demolition of the Tantanoola Mill as well as the loss of 200 jobs at the neighbouring Millicent Mill.
Over the past 20 years, the number of KCA manufacturing plants has fallen from six to two.
