Queensland-based building fitting and fixture supplier GWA Group will cut 164 jobs workforce as part of a manufacturing restructure.
According to the Business Spectator, this number equates to 10 per cent of the company’s Australian workforce.
GWA said in a statement that its plastics plant in the Adelaide suburb of Norwood will be phased out over the next three years, and as a result, 76 jobs will be lost.
In addition, its vitreous china manufacturing facility in the Sydney suburb of Weatherill Park will close by the end of 2014 and 88 jobs will be lost. The company hopes to sell the site, lease it back and save the remaining jobs at the site.
To deal with the closures, the company will source plastics and vitreous China products from existing overseas suppliers.
The restructure will result in a charge of about $29 million in fiscal year 2015. This figure includes redundancies, asset writedowns and associated costs. The sale of the Weatherill Park site is expected to generate $24m and the restructure is expected to result in annual savings of $4m into the future.
GWA said that the previously announced sale of its non-core Dux Hot Water and Brivis Heating and Cooling businesses is now "well advanced".
The company said, “subject to the successful divestments of Dux and Brivis and the sale of the Weatherill Park site, directors will actively consider options to return proceeds to shareholders whilst maintaining the group's strong financial metrics."