New Castalloy, a components manufacturer owned by US motorcycle company Harley-Davidson, has been given a four-year rent-free deal at its SA government-owned factory and will stay open.
"Earlier indications were that the company may be downsized and eventually closed, but this week it received confirmation from parent corporation the Harley Davidson Motor Company to stay in our state,” Tom Kenyon, the South Australian manufacturing minister told the ABC.
The future of the plant, which makes parts including wheels and hubs at its foundry in North Plympton, has been under a cloud since a late 2011 announcement, in which Harley-Davidson said the factory would close in mid-2013. Since the announcement, 110 jobs have been cut.
News Limited reports that Harley-Davidson has agreed to a four-year lease extension and workers have signed on for a four-year pay agreement.
"Through this evaluation process, we have determined that New Castalloy can be competitive at producing low-volume, high-finish specialty wheels and provides the optimal supply base for these components,” John Dansby II, Harley Davidson’s vice president of manufacturing told The Advertiser.
"We appreciate the support of the New Castalloy employees for their continued focus on operational competitiveness."