The plant, which produces lamps, switches and electronics for car makers, will be closed in a staged manner, with all operations ceasing by the end of 2009.

A total of 210 employees will be affected by the closure and all will be provided redundancy packages. There will also be the option for some staff to relocate to Visiocorp's remaining manufacturing facility in Lonsdale, South Australia.

"This is a sad day for Visiocorp and the people of Taree," Plant Manager Mr Todd Watkin stated. "We completely understand the impact this decision has on our staff, their families and the local community but we were left with no alternative except to close the Taree plant."

"The Taree facility has been under threat for some time and it is no longer economically viable for the company to operate a manufacturing facility in Taree," he said. "The Taree plant has been operating just four days a week since the beginning of 2009."

Mr Watkin said the budget for closure includes payment of entitlements as per the Company's certified agreement.

"We will do whatever we can and provide whatever support is necessary to help our workers through this difficult time," he said.

It is envisaged that the majority of staff will not be made redundant until the end of 2009 as the company still needs to fulfill outstanding customer orders and commitments.

Samvardhana Motherson Group (SMG) has provided significant funding to support the orderly run out of Taree and has a firm commitment to the Australian operations.

Visiocorp Australia operates two manufacturing plants: Visiocorp Taree Pty Ltd, 89 Hargreaves Drive, Kolodong Industrial Estate, Taree; and Visiocorp Australia Pty Ltd, Sherriffs Road, Lonsdale, South Australia.

MORE DETAILS AND A CLOSER LOOK AT THE REPERCUSSIONS OF THIS ANNOUNCEMENT WILL BE PUBLISHED IN THE MANNING RIVER TIMES NEXT TUESDAY.