Manufacturing News

ASC to cut more jobs if it doesn’t get more work

Adelaide-based Shipbuilder ASC says it will be forced to cut 500 more jobs by the end of 2016 unless it wins more naval contracts.

AAP reports that the company will need to secure work such as the proposed new offshore patrol vessels build and the new frigates project in order to save jobs.

"At the end of 2016, another 500 jobs or so will be lost if nothing changes," ASC interim chief executive Mark Lamarre told a Senate estimates hearing in Canberra yesterday.

"[We] are heading to a reasonably steady decline that will accelerate at the end of 2017.

"So our focus is to demonstrate improved performance in our business and work with government on future programs, depending on the Navy's needs."

ASC has cut 300 jobs since May. The company currently employs 2600 full-time workers as well as a large number of sub-contractors.

As Adelaide Now reports, Lamarre told the Senate estimates hearing ASC is capable of handling all three major national defence projects, namely the new frigates, the offshore patrol vessels, and the new generation submarines.

 “I have comfort in saying we can do all three because I know that there will be partners involved, whatever the outcome is,” Lamarre said.

“What this yard is really good at is the hard bits of shipbuilding, which is getting the integration and the activation of the systems of the ship and getting it to sea.”

Image: ASC

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