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State pledges support for South East

27 January 2011

Premier Mike Rann has expressed his deep concern at the decision by Kimberly-Clark Australia (KCA) to scale back production at its Millicent and Tantanoola plants.

'This workforce reduction at such a large regional employer is obviously a real blow, not only for the workers but for the Millicent and wider South-East community,' Premier Rann says.

KCA informed the State Government that this was a decision by its US parent company, as part of Kimberly-Clark's global restructuring to ensure long-term viability.

The Millicent Mill will continue to employ around 370 people.

The State Government has reached an agreement with Commonwealth Innovation Minister, Senator Kim Carr, to establish a new $17m Innovation Investment Fund targeting the affected South East region.

Mr Rann says the State and Commonwealth Government will work closely with Kimberly-Clark, unions and the wider community to provide support for the workers.

"Displaced workers will also be supported through Centrelink and Job Services Australia," Mr Rann says.

"I have been assured by Kimberly-Clark that workers will receive their full entitlements and access to outplacement and counselling services.

'While we are doing all we can to help, I want to encourage employers in the South East who are thinking of expanding to give KCA workers a go.

'This Government, in conjunction with the Federal Government, has a track record of providing assistance for workers affected by production shutdowns."