AUSTIN ANNOUNCES BRISBANE FACILITY CLOSURE

Written on the 24 November 2015

AUSTIN ANNOUNCES BRISBANE FACILITY CLOSURE

AUSTIN Engineering (ASX:ANG) hopes to shave $2.8 million off annual operating costs, after closing the doors at its manufacturing facility in Brisbane.

The closure at Carole Park will be continuously rolled out until the end of February 2016, following a rationalisation of operations along the east coast.

The asset write-off is expected to cost $1.7 million in restructuring, with $300,000 already paid in leave provisions.

Austin's corporate office will continue to operate from the site to maintain the option of re-opening the facility depending on future market conditions.

"This location also has net fixed assets totalling $1.6 million and we are considering the options to relocate or dispose of these assets as needed," Austin says in a statement.

"The coal mining markets of the east coast of Australia are continuing the recent trend of deferring capex purchases of new/replacement equipment and, where possible, repairs.

"This environment has resulted in Austin having excess manufacturing capacity in this region. By closing the Brisbane facility, Austin's capacity will better match the market requirements and will offer significant annual savings."

Austin's regional facilities in Mackay and the Hunter Valley have been upgraded in recent years, to manage the manufacturing and maintenance workload. Key equipment will be relocated to these facilities to boost capacity.

The company says the rationalisation will not impact the ability to deliver products to customers.


Latest News

GROUPTOGETHER A GIFT FOR TIME-POOR PARENTS

JULIE Tylman and Ali Linz have taken the stress out of gift giving by creating GroupTogether, an online platform whic...

SIRTEX CEO DISMISSED FOLLOWING SHARE TRADING PROBE

SIRTEX Medical Ltd (ASX: SRX) has sacked its chief executive officer, Gilman Wong (pictured), following an investigat...

SANTA DELIVERS KOGAN A GIFT

KOGAN.COM (ASX: KGN) has exceeded its expectations and reported another strong quarter of trade.

The online retail...

FOUR WAYS YOU SHOULD PROTECT YOUR IT SYSTEMS FROM EXTREME WEATHER

SHANNON Overs, co-founder of onPlatinum ICT, sees it too often, perhaps half a dozen times per year businesses tha...

Related News

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

FEMALE ENTREPRENEURS GET SPRINGBOARD TO GROWTH

DESPITE the fast-growing number of women studying STEM subjects at school and university, women continue to be und...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter