Over the next 12 months, according to Sandvik Australia manager Rowan Melrose, it would transfer the bulk of its Australian manufacturing operations to offshore factories.
“We fully understand the impact that this decision will have on individuals, their families and the local community,” he said.
Melrose said Sandvik, which had been in business for 150 years, was optimising its supply chain globally – so it could focus its efforts and resources on giving the best possible service and support to customers.
“We have a very strong commitment to service and support, and we will continue to provide a wide range of aftermarket services through our customer service centers throughout Australia,” he said.
The company said this transfer would allow Sandvik to focus on the business of selling, servicing and supporting mining equipment to customers throughout Australia.
As part of the company’s strategy to optimise its supply chain around the world, manufacturing will cease at Heatherbrae and the Canning Vale factory in Perth.
Sandvik will continue to provide sales, aftermarket and support services from Heatherbrae and its other facilities around Australia.
Also remaining in operation will be Sandvik’s Bayswater factory in Perth, which will continue to manufacture a full range of aftermarket, over-the-counter conveyor pulleys, rollers and frames for the mining, construction and quarrying sectors.
Melrose said that the decision to cease most local manufacturing – while regrettable for affected employees – was inevitable in today’s global economy.
“Sandvik employees affected by this announcement will be supported through the company’s employee assistance program,” he said.
Last October, Sandvik announced the relocation of its conveyor component production unit from Heatherbrae to Western Australia, with the loss of approximately 25 jobs from NSW.
At the time, the company made a further 12 roles redundant across other production units at its Heatherbrae Hunter Valley site (HVS) facility as a result of reduced activity levels in the Australian and global mining industry – particularly the coal sector.
