MELBOURNE, Australia (Aug.30)—Pacific Dunlop Ltd. is reviewing its South Pacific Tyres business unit for ways to reduce the cost of manufacturing after the company suffered a 77-percent drop in operating profits for the fiscal year ended June 30. The review, being conducted by the business consulting firm Arthur Andersen L.L.P., has raised concerns among employees about possible job losses, according to the National Union of Workers, which represents the rank and file at South Pacific Tyres. Pacific Dunlop CEO Rod Chadwick opened the door for speculation about the future of the unit´s four tire plants by stating "we probably need to change our exposure to manufacturing" in prepared comments posted on the firm´s Web site. Pacific Dunlop said also said it will "reconfigure manufacturing to make it more responsive and cost competitive."
Pacific Dunlop mulls changes at South Pacific Tyres
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