Esco shuts Northgate foundry, nearly 70 jobs lost

US-based mining services company Esco Corporation shut its Northgate, Queensland foundry first thing this morning.

"It was everybody's first day back from Christmas and so they got all these bigwigs fly in from America to tell us we don't have a job," an anonymous worker told The Australian.

Esco designs and manufactures wear parts and complementary services. It acquired the foundry in 2010 from Austcast, hoping to capitalise on the mining boom in that state.

"The plant had a quality workforce making quality products, but a number of factors made it unworkable to operate economically," said Joe Weber, the company’s vice president of global operations, in a statement.

The company aimed to boost the output of the low-volume factory and become more profitable through economies of scale, though this was not realised.

"It wasn't any one factor but a series of hurdles that led to the closure," said Weber.

The statement also said up to 69 workers had lost their jobs in the closure.