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Thursday, 20 October 2016 10:31

Loss of 80 jobs in Australia as ABB closes transformer factory

Loss of 80 jobs in Australia as ABB closes transformer factory Photo: ABB

Australia, Perth: About 80 workers will lose their jobs at the ABB’s Malaga factory in Perth, which this time last year celebrated 60 years of transformer manufacturing in Western Australia.

The closure of the transformer factory follows the loss of a critical contract with the State Government-owned electricity supplier Western Power, which was up for renewal, but ABB lost it because it was 40 percent more expensive than its nearest Australian competitor, according to Australia’s Energy Minister Mike Nahan, reports The Australian.

Earlier this year the factory also lost a preferred supplier tender for Western Power, and has also lost work from big mining companies as demand in that sector for power equipment recedes.

Political opposition in Australia is blaming the government for the loss of 80 manufacturing jobs that will ensue, claiming the closure of the plant is connected with the government preparing Western Power for sale, as the government is just weeks away from the decision on if and how it should sell the state utility.

Source: The West Australian

Additional Info

  • Continent: Australia
  • Category: Business