Sandvik has announced it will close its Wollongong operations and reduce its Kalgoorlie site in the wake of continuing mining uncertainty.
As a result of the shutdown Sandvik will now focus on field service in the Illawarra, while its Kalgoorlie site will now operate as a field service division, warehouse, and rock drill rebuild facility.
“Sandvik Mining in Australia continues to operate under very challenging market conditions, with the continued reduction in commodity prices and subsequent decline in the mining business,” Rowan Melrose, country manager for Sandvik Australia, stated.
“As a result Sandvik Mining has undertaken a further review of the business and adjusted our Australian operations accordingly.”
As a result of these changes 63 roles will be made redundant in the company.
“Unfortunately, these redundancies are necessary as a result of the continuing decline in market conditions,” Melrose said.
“Sandvik is not alone in having to make these difficult decisions, with other suppliers of equipment and services, along with mining companies, announcing employment reductions and facing the same situation.”
The company added that all workers affected will be offered career transitioning services and access to Sandvik’s employee assistance program.
Sandvik will now carry out its customer pre-delivers and machine rebuilds and repairs for the Illawarra and Kalgoorlie regions from Heatherbrae and Perth respectively.