Another Blow To Australia's Manufacturing Sector

10 Dec 11

Harley-Davidson is to close it's South Australia subsidiary New Castalloy with 212 jobs lost.

In the face of a high Australian dollar, global uncertainty and Asian competition, President and chief operating officer of Harley-Davidson, Matt Levatich recently announced the closure of the local subsidiary and the loss of 212 jobs.

New Castalloy had been a producer of cast wheel and wheel hubs for the US Motorcycle giant.

Mr Lavatich said that "The company's decision on wheel production follows a review of the long-term fit and competitiveness of the New Castalloy business with our strategy and was not made lightly."

The company will wind down its local operation over the next 18 months and reportedly move the wheel manufacturing to China in a bid to save $9 million a year.

No Government assistance was offered to save the operation and 212 jobs, and it has been reportedly said that the company did not make either the Federal Government or South Australian, aware of its decision.

This further blow to the manufacturing sector will see further jobs created in China at the expense of Australian workers and one can only think that the Harley-Davidson name will be tarnished in moving wheel production to a country renowned for low quality manufacture, unsafe work practices and disregard for the environment.

Again we see little flow on effects from recently announced Government programs to aid the Australian manufacturing sector, and protect jobs in this vital sector. The Gillard Government has so failed to stem the receding tide of manufacturing in Australia.