Motorway Tyres shut their doors.

[thomo.in.a.gq]

No more mongrels.

http://stawell.yourguide.com.au/news/lo ... 35126.aspx


Motorway Tyres factory closes
MARCUS MARROW
5/08/2008 8:22:00 AM
Staff at Stawell's Motorway Tyres factory were left stunned last Friday after the company's owners announced they would be closing the doors.
Several staff members had been advised to take leave prior to the bombshell being dropped late Thursday. Staff who could not be contacted about the closure had letters hand delivered to their homes via a taxi on Friday.

The decision by the owners to close down the tyre remoulding business directly affects 34 staff in Stawell, along with eight in Melbourne.

Concerns have since been raised about whether or not the staff would receive their entitlements and as a result, several meetings have already been held.

A meeting involving many of the staff took place on Saturday afternoon, where a decision was made to approach the Northern Grampians Shire Council, along with Federal Member for Ballarat Catherine King and Member for Ripon Joe Helper, to ensure the entitlements are honoured by the company.

In a statement released on Saturday, the company cited difficult trading conditions for the closure.

The company advised that joint administrators Gideon Rathner and David Coyne had been appointed in order to facilitate the closure and to ensure that asset sales are conducted in an orderly manner.

Motorway Director, Jason Bresnehen said the business had experienced difficult trading conditions over the past several years, primarily due to growing and sustained competition from low priced imported tyres.

Mr Bresnehen said there had also been significant price increases of rubber and increased distribution costs as a result of fuel price rises.

``Over the past three years, management has injected several million dollars into the business, to improve efficiencies in the production and distribution of remoulded tyres and truck treads. During this time there were also significant efforts made by staff to improve the efficiency of the business,'' he said.

``Despite the efforts of management and staff the tyre remoulding business is simply not cost-competitive.''

Mr Bresnehen said these trading conditions had impacted upon other Australian tyre businesses and used the example of Goodyear recently announcing the closure of the Somerton based, South Pacific Tyres factory which employs 600 workers.

``Over the past six months, management has explored a number of ways to keep the business running as a going concern. Unfortunately these options have not been successful,'' he said.

``It is a sad and difficult decision to close the plant. Since 2005 we have made significant investment to strengthen the business but events beyond our control have created a cost-price squeeze.

``I would like to express my concern for the company's dedicated employees who have worked so hard over many years to ensure the businesses success. Despite the difficult trading conditions, the company has high quality assets and as such, we believe that the Administrator will be able to satisfactorily meet all employee entitlements.

``We informed our employees Friday of the company's decision to appoint an Administrator. I am concerned for the wellbeing of our employees and their families who are affected most by this announcement. We also recognise the economic and social impact upon the town of Stawell and the surrounding region.''

Motorway Tyres was founded at Stawell in 1932. Over the past 70 years the business developed to become a leading Australian manufacturer and distributor of rubber tyre products to the taxi, passenger and truck market.

[bogged]

primarily due to growing and sustained competition from low priced imported tyres.

Keep hearing this in recent times... its good to have competition, but at what cost? Surely this has to end soon, look at the car industry... so many business' shit themselves in recent weeks.

[nicbeer]

Fug.

that sux

i have the motorway muds and was looking for more of them

[scooby_74]

i might have some near new ones for sale in a couple of months. just waiting to c how my new tyres go.

[GRPABT1]

primarily due to growing and sustained competition from low priced imported tyres.

Keep hearing this in recent times... its good to have competition, but at what cost? Surely this has to end soon, look at the car industry... so many business' shit themselves in recent weeks.

WTF? they copy tyres like simex pedes then complain about competition?

[nicbeer]

i might have some near new ones for sale in a couple of months. just waiting to c how my new tyres go.

kool let me know.

also is there anyone else in aus doing similar tyres to motorway?

i know in the uk there is a couple.

[GQ Bear]

They shoulda started re-moulding 35's. They'd have made a killing i reckon

[Offtrack]

Motorway are a pack of ##%#@!.

I know someone directly effected, and they way they sucked every dollar out of the business, and then closed the doors, is disgraceful.

The (majority) owner of the company is worth millions, and in the final weeks, resigned as a director. He basically jumped ship, and left everyone else to drown.

Staff entitelments were not paid, although the govenrment has a fund to pay out holiday pay etc, and become a creditor to re-coup their money.

Also.......the compnay has NOT BEEN PAYING STAFF SUPER......

I feel sorry for anyone else effected. The owners are scum.

[muppet_man67]

super will be the big issue. as Geers do not pay this.

[-Scott-]

WTF? they copy tyres like simex pedes then complain about competition?

Are they complaining? I read that article and found no complaints, just a measured statement. They've accepted that they're not competitive, and they're closing their doors. End of story.

Complaining would be "the government has forced us to fail by allowing the market to be flooded with cheap sub-standard imports made using slave labour in third world countries."

Staff entitelments were not paid

They announced they are closing 2 days ago, and you say this already?

"the company has high quality assets and as such, we believe that the Administrator will be able to satisfactorily meet all employee entitlements."

Give them a chance.

I think I can be a pessimist, but some people astound me with their ability to jump on negatives.

[Offtrack]

Staff entitelments were not paid

They announced they are closing 2 days ago, and you say this already?

"the company has high quality assets and as such, we believe that the Administrator will be able to satisfactorily meet all employee entitlements."

Give them a chance.

I think I can be a pessimist, but some people astound me with their ability to jump on negatives.

There was no 'announcement'. Staff (who were not taking holidays, due to lack of production) were told on the day, they were out of work as of lunch time, and had to be out of the building same day.

Peoples tools and personal belongings were locked in, as the locks were changed on the day.

As for assets......my understanding is they sold them off when the new owners took over, and leased everything there after....meaning there might be far fewer assets than first thought.

Regarding this:

``Over the past six months, management has explored a number of ways to keep the business running as a going concern. Unfortunately these options have not been successful,'' he said.

....explored, in theory, although not a cent was spent trying to develop new ideas, which were pretty promising.

I'm only saying that much. Although this is a 'closed' forum, my info is still only 2nd hand.s

[GRPABT1]

WTF? they copy tyres like simex pedes then complain about competition?

Complaining would be "the government has forced us to fail by allowing the market to be flooded with cheap sub-standard imports made using slave labour in third world countries."

I'll take my sub standard slave labour built simex over motorway remoulds any day. Gotta love them industrius little fellows

[DIRTY ROCK STAR]

They shoulda started re-moulding 35's. They'd have made a killing i reckon

i think you hit the nail on the head there....
or bigger? why not 37, 38 or 42s???

[hiluxmad]

pity really ive had mongrels for 4 years or more and they have taken everything we could throw at them and still plenty of tread would buy them again( if i could) these tyres have done over 200,000 HARD ks and still keep going....... still running them now alright 1 goes down slowly but that is due to one of my idiot mates ringbarking it on the inside.

[thomo.in.a.gq]

They shoulda started re-moulding 35's. They'd have made a killing i reckon

i think you hit the nail on the head there....
or bigger? why not 37, 38 or 42s???

I emailed them about 2 years ago in relation to making 35's, and was told they would not do them as they could not get enough used 35's.

Fair chance if they made a 35 simex copy for about $150 - $180 a hoop, they would still be in business today.

[Gutless]

They shoulda started re-moulding 35's. They'd have made a killing i reckon

i think you hit the nail on the head there....
or bigger? why not 37, 38 or 42s???

I asked this question years ago, and the answer was that there were not enough usable carcases available in those sizes to justify designing and making the moulds.

[bogged]

... these tyres have done over 200,000 HARD ks and still keep going....... .

they should go to a museum. or you need a new keyboard, your zero key is jammed.

[TRobbo]

the contents of the factory is for sale here

http://www.graysonline.com.au/catalogue ... THUMB&SP=1