IPLEX Pipelines will shut its Albury operations in early 2015 resulting in the loss of another 38 jobs.
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The company confirmed the timeline of the move yesterday after an earlier announcement it would undertake a consolidation of its NSW factories.
Iplex Pipelines underwent an $8 million expansion of its Thurgoona plant in 2008 which resulted in the creation of 10 additional jobs.
Its factory at Minto has already closed and the factories in Albury and Chipping Norton will be consolidated into a purpose-built centre at Penrith over the next two years.
The Albury factory had a peak workforce of 45.
Iplex Pipelines executive general manager Rob McLeod said all affected employees would be offered support, advice and assistance in pursuing opportunities within the company and externally.
“We have been communicating with our employees over recent months to make them aware that we were reviewing our manufacturing capabilities nationally,” he said.
“We understand and regret the impact this will have on some of our employees and their families.
“But due to economic challenges we face, this decision is a tough but necessary one for the long-term survival of our business.”
The Chipping Norton plant will close late next year followed by the Albury factory early in 2015.
Australian Industry Group regional manager Tim Farrah said the manufacturing sector was feeling the strain and Albury-Wodonga wasn’t immune.
Bradflo air-conditioning factory closed in North Albury with 29 jobs lost earlier this year and another 40 positions went at Lavington gearbox manufacturer, DSI Holdings in recent months.
DTD Engineering went into voluntary administration this year before former owners were part of a rescue package which saved 56 jobs.
Mr Farrah said the underlying issue was demand had slowed right around the world.
“There are companies right around the globe that produce very similar products and services to those here,” he said.
“As demand shrinks everyone is fighting for a much smaller market.
“There is nowhere to hide and Albury-Wodonga is part of the global economy and with a global environment where demand is soft, more pressure is on.
“Everyone hopes these things are cyclical and the tide will turn.”
Mr McLeod said Iplex Pipelines remained committed to Australian manufacturing, but the company had to change.
“We must be as efficient as possible,” he said.
