Workers have been told in a letter that the Bradken foundry at Kilburn, Adelaide will be “phased out” late next year.
The ABC obtained a letter from an anonymous worker at the foundry, with workers told mining’s “significant downturn” had forced the company to make savings, and the factory was expected to close in late 2015.
Reasons such as high costs for labour, utilities and services were also blamed by Bradken, a manufacturer of mining consumables.
The Australian Workers Union’s Joseph Kane said the environment for the 119 workers who would lose their jobs was difficult.
"Foundry workers have some very good skills, but where do you transfer them to?" Kane told the ABC.
This follows the company’s statement in May that it would “progressively close a number of its highest cost manufacturing facilities and reduce associated costs and by transferring work”.
The May announcement predicted the company’s workforce would be reduced by 10 per cent compared to what it was in December 2012 and 25 per cent down from September 2012 (its peak).
The Adelaide Advertiser reports that the Kilburn foundry has been running since the 1950s.