It’s hard to believe but that headline is closer to fact than fiction. As reported on August 8 in More Supply Problems for Holden and Ford the industry is in dire trouble as another parts supplier is on the brink of closure.
Ajax Engineering Fasteners, a company that supplies fasteners and bolts for Holden, Ford, Toyota, Mitsubishi and PBR Australia, is in voluntary administration and now cannot afford to pay it’s workers. Union spokesperson, Bill Shorten, claims the company needs $450,000 by Monday to pay workers and a further $2 million by the end of next week.
Unless the money is forthcoming the Administrator will have no choice but to close the plant. If that happens 200 people will be out of work immediately but that’s just the start. It’s estimated that PBR will run out of stock in less than 24 hours, Holden will be out of stock on Monday and Ford may just last till later in the week.
Re-supply is not just a matter of ducking down to the nearest Bunnings store and picking up a few packets of screws either. While fastemers and bolts may not sound very high tech what we’re talking about here are specialty products designed and produced for particular applications. Finding a new supplier will take months.
Talks aimed at providing a rescue package have been taking place between the Administrator and the stake-holders but one stake-holder has been unable to agree to the terms of a funding package.