Austal lays off workers

 

Shipbuilder Austal has laid off 26 people from its base in Western Austraila as well as in Spain.

The West Australian reports that Austal’s service businesses in Spain have been closed altogether, while the company has cut costs at its local operation in Henderson by moving its shipbuilding and services operations into one building.

Austal’s other service facilities around the world will not be unaffected.

"Combining the service base into the shipbuilding facility, which is operating just a few hundred metres away, makes financial and common sense," chief executive Andrew Bellamy said.

"Consolidation will provide greater operational flexibility, make both the shipbuilding and services businesses more competitive through reduced overhead costs and will bring management together onto one site."

Belamy said that the closure of the Spanish operation can be put down to economic problems in that country.

Over the coming months, Austal plans to recruit over 100 new staff to work on the Cape Class patrol boats it is building for Australian Customs and Border Protection. These jobs will be based at Henderson.