Bundaberg-based aviation engine and part manufacturer CAMit has confirmed its closure.
The ABC’s Country Hour reports that the business employed 20 workers, and supplied to recreational aircraft makers such as Jabiru.
According to its website, CAMit began in 1986 and owned the biggest factory of its kind in the region.
CAMit was known for its collection of four-stroke four, six and eight and cylinder engines. It had provided Jabiru with aircraft engines since the early 1990s, replacing Italy’s KFM as the supplier.
Jabiru’s business development manager Susan Woods said the industry experienced difficulties including a small market and cheaper imports.
She added that the sector was important for the Bundaberg region, which fortunately had a “very pro-aviation” council.
“We do need to overcome this and we will overcome it as we have overcome very many other challenges throughout the 27-year history of Jabiru,” she told the ABC.