Launceston-based car parts manufacturer ACL Bearings will be closed by receivers by next June.
The Hobart Mercury reports that the decision comes after receivers were unable to find a buyer for the company. 136 workers will lose their jobs as a result of the closure.
As the ABC reports, receiver managers have been operating the company since August 2009. At that time 110 ACL workers lost their jobs. Then 35 employees were sacked in 2011 and a further 20 lost their jobs in July last year.
According to Receiver manager Matt Byrnes, worker entitlements will be paid by the Federal Government's General Entitlements and Redundancy Scheme. On average, they have served the company for 20 years each and, as the Examiner points out, the closure will result in a $10 million redundancy bill.
"Employees took the news pretty well, I think some of them will have anticipated that outcome," he said.
"There will be an orderly wind down of operations with operations to cease by June 2014."
ACL Bearings supplies components such as engine bearings and gaskets to the automotive industry and exports around 75-80 per cent of its products.
According to Byrnes, receiver were initially confident that a buyer would be found.
"Unfortunately despite negotiations with a number of short listed parties, none of those parties were able to put forward an offer for the business as a going concern here in Tasmania," he said.
He couldn’t put the failure to find a buyer to any single factor, but said, "I think certainly the location of the business in Tasmania and the currency, Australian dollar against the US which has obviously been strong was a factor.”