Assistance not enough for plant

BAILOUTS from all tiers of government, understood to be worth more than $8.8 million, were not enough to keep Orange’s Electrolux plant open.

In January, the former federal government committed $4.7 million to the plant under its Clean Technology Investment Program.

A decision on a second application under the scheme was pending when Labor lost government in September.

One week after the funding pledge, in February, Electrolux announced the Orange plant would close at the end of 2015, unless the factory was able to compete with its fellow refrigeration plant in Thailand for a $45 million investment from its Swedish head office to build the next generation of products.

In May, the state government gave the plant a $40,000 grant to pay for the employment of an engineering consultant to kick start a three-month study and master plan to look at ways of overhauling the entire plant to make it more competitive.

In July, Orange City Council pledged $1.1 million over 10 years to the plant if it was to stay open with a full workforce of 550.

The support package was worth $110,000 a year at a rate of $200 per employee and would only cease if there were less than 250 full-time equivalent employees.

In August, it was revealed Electrolux had asked the former federal industry and innovation department for $41 million to boost its chances of attracting the $45 million investment to build the company’s new range of products.

In September, member for Orange Andrew Gee announced a payroll tax break from the state government worth $4 million.

BAILOUTS from all tiers of government, understood to be worth more than $8.8 million, were not enough to keep Orange’s Electrolux plant open.

BAILOUTS from all tiers of government, understood to be worth more than $8.8 million, were not enough to keep Orange’s Electrolux plant open.

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