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

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

FROM SECOND HAND MOTORCYCLE DEALER TO LEADER OF THE PACK

MOTORCYCLE Holdings (ASX: MTO) founder and managing director David Ahmet (pictured) says he often gets asked wheth...

HOW TO PROTECT YOUR BUSINESS FROM RANSOMWARE

BUSINESS owners are being warned to prepare and protect themselves from the type of ransomware attacks which hit A...

NUFARM SHARES SURGE TO FIVE YEAR HIGH ON BIG TURNAROUND

After a heavy loss in 2015 because of major restructuring, crop protection company Nufarm (ASX: NUF) has swung to ...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter