Vic: Feltex to close Melbourne plant by June

AAP General News (Australia)
02-02-2007
Vic: Feltex to close Melbourne plant by June

MELBOURNE, Feb 2 AAP - The new owner of carpetmaker Feltex has announced today that
it will honour employee entitlements in full when it closes its manufacturing plant and
distribution warehouse in Melbourne.

The closure of the Brooklyn plant, in Melbourne's south-west, which was planned for
the end of June, will result in 110 job losses.

The move was part of a rationalisation of Feltex Carpets which was bought by Geelong
based the Godfrey Hirst group late last year.

Godfrey Hirst spokesman Jim Walsh said all employee entitlements would be met.

He said Feltex was in receivership when it was purchased by Godfrey Hirst on November 30, 2006.

"We have undertaken a full review of Feltex and we are committed to fully overhauling
the Feltex operations to ensure it has a viable and vibrant long-term future in carpet
manufacturing in Victoria," Mr Walsh said.

Three hundred people were employed at Feltex when it was bought by Godfrey Hirst.

Mr Walsh said the closure would be staggered over the next five months to allow Godfrey
Hirst to work with employees on the timing of the redundancies, and the relocation of
other staff to other plants.

Under the plan the twisting and heatsetting operations will be transferred to Godfrey
Hirst's plant in North Geelong.

Feltex's national distribution centre will be transferred to Godfrey Hirst's plant
at Laverton, in Melbourne's southwest by June 30.

The company's pattern printing and laminating operation at Tottenham will be closed
within two months.

Comment was being sought from the Textile Clothing and Footwear Union of Australia.

AAP sam/dk/cjh/bwl

KEYWORD: FELTEX

2007 AAP Information Services Pty Limited (AAP) or its Licensors.