Mount Gambier’s de Bruin Engineering, a manufacturer of a range of products including farm machinery, has sacked 21 workers.
The ABC reports that the company’s parent company, which also has interests in aviation, agriculture and elsewhere, blamed the job losses on the economic climate and more specifically on the position of the timber industry.
Managing director Scott de Bruins said that, while the engineering subsidiary would continue to operate, ongoing losses could not be sustained and the redundancies were unavoidable.
"The decision to reduce operations has not been taken lightly or without exhausting all available alternative avenues,” he said.
Mount Gambier Mayor Andrew Lee expressed his sympathies for the sacked workers and their families.
"I feel for them, in particular if they've worked for the company for a number of years,” he said.
"It's sad to see jobs going because our aim is to create jobs. It's not just a problem for our city but the state and nation as well."