Sandvik closes facility, cuts jobs

 

Sandvik has announced the closure of its hard materials facility in Mayfield, as well as the cutting of 26 jobs.

The facility supplied cemented carbide solutions for process lines, mining, oil and gas, metal cutting, and wear application.

“Reduced business opportunities in Australia in the current climate have resulted in us making the decision to close our Mayfield operation,” Rowan Melrose, president of Sandvik Asia Pacific, explained.

In addition to this shut down, Sandvik is also looking at voluntary redundancies at its Hunter Valley Site facility in Heatherbrae.

It will cut around 43 roles from the coal focused manufacturing, assembly, and distribution centre.

“Unfortunately current market conditions have meant a decreasing order intake for our market-leading load-and-haul products for the coal mining sector,” Melrose said.

“This decrease in capital sales means we will have had to make a number of positions redundant at Heatherbrae.

“Since we announced some redundancies at this site in December 2012, forward orders have slowed further.

“Over the past few months, Sandvik management has done everything it can to avoid further redundancies at our Newcastle facilities; we have restructured our workflows, redeployed employees to other worksites and cut overtime to reduce costs as much as possible in order to keep our trained workforce,” he said.

“Unfortunately, these steps have not been sufficient, as we have seen a further reduction in outbound orders during 2013; this means we have been forced to make these additional changes."

Sandvik is offering counselling to all employees affected by the announcement.

It originally opened the Heatherbrae site in March last year.

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