Troubled Australian textile manufacturer, Austrim Nylex, has announced a reorganisation of its textile businesses, putting around 570 jobs at risk.

The manufacturer, which has been suffering from dropping profits and boardroom wrangles, is expected to merge its dyeing plants at Coburg and Thomastown, in Melbourne, leading to substantial job losses.

Managing Director at Austrim, Peter Crowley, said that the restructuring of the business was necessary if it is to remain competitive in the face of the removal of import restrictions.

Austrim will also undergo reviews of its other key business areas.