The Forum > General Discussion > Manufacturing plants start to close ahead of Carbon tax.
Manufacturing plants start to close ahead of Carbon tax.
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Any plant that closes never has only one reason. Having invested capital in building a plant owners are reluctant to walk away and pay huge closing and retrenchment costs. While the smelter might still have had a dismal future, the carbon tax sealed its fate.
Without the carbon tax the plant probably would still have closed, but it may not have. The carbon tax will be for many plants the straw that breaks the camel's back. For investors, it is yet another reason not to invest in Australia.
The production in Australia will be replaced no doubt by more carbon pollution intensive plants in China where there is no carbon tax.