THE future of Orange’s Electrolux fridge factory would remain secure even if the company lost a trade dispute with Korea, a spokesman said yesterday.
Electrolux has launched an anti-dumping action alleging Korean whitegoods manufacturers LG and Samsung have been selling fridges in Australia for significantly less than they are sold in Korea.
Company spokesman Craig McCarthy yesterday said the Orange plant would not be greatly affected by the outcome of the case.
He said there had been significant increases in efficiency and productivity in the company’s Orange operations in the past four years, which had enabled the local factory to become globally competitive.
Productivity improvements would continue to occur at Orange to ensure it remained competitive in domestic and overseas markets, he said.
Orange operations had become focussed on the manufacture of large refrigerators and the company now had a competitive advantage in this area, Mr McCarthy said.
Better product designs and technological innovations had helped it establish this advantage, he said.
Closure of the small fridge making unit at Orange last year, which resulted in the loss of about 200 jobs, also enabled the company to focus more on its strengths, he said.
Professor Rob Lambert, of the University of Western Australia, has been studying multi-national companies including Electrolux. He was one of the speakers at a union-organised forum in Orange last year to discuss the future of Electrolux in Orange.
Prof Lambert said there would be a cloud over the future of large manufacturers in Australia until these companies had an obligation to spell out their plans to the Australian public.
The worldwide experience was that manufacturing operations were increasingly being concentrated in cheap labour countries, he said.
He said he hoped the Orange plant would remain competitive for many years by focussing on its strength in large fridge units.
Mr McCarthy said the anti-dumping action was “a sidebar to the main action” and not integral to the future of the company in Australia. However, he said: “We don’t believe the case is going to fall over.”
Electrolux managing director Trevor Carroll said: “Electrolux is determined to protect its position as Australia’s leading major appliances company. We will seek prosecution of any competitor who we believe acts illegally against our interests or those of local manufacturers.”
From yourguide.com.au