PORTLAND wind tower maker Keppel Prince will sack 100 workers over uncertainty in the renewable energy target (RET).
The bombshell announcement comes a day after the Abbott government announced it will seek to halve the target.
Keppel Prince boss Steve Garner confirmed the company would close most of its wind division.
"After careful consideration, the decision has been taken to mothball most of the fabrication facilities at our Portland works. This will result in a reduction in our workforce of approximately 100 full time employees," Mr Garner said.
This will be a very difficult and emotional time for all of us, so please continue to look out for one another and work safely.
"The continuing uncertainty over large scale renewable (including the Renewable Energy Target) and related wind tower fabrication projects, together with the significant losses sustained from such activities over the past several years, have forced Keppel Prince Engineering to review this aspect of its business.
"Keppel Prince Engineering will continue to seek viable wind tower and other major fabrication projects, with a view to resume operations when feasible."
In a memo to staff on Thursday, Mr Garner said the company was seeking voluntary redundancies by October 31.
"This will be a very difficult and emotional time for all of us, so please continue to look out for one another and work safely," he said.
The changes will also mean:
- The Warrnambool crane operations will be closed
- The school road division will be closed and general fabrication and industrial coating will be consolidate at the Darts Road site.
- Some management and administrative will also be removed or restructured.
The company had warned in August that its wind division faced closure if the government abolished or scaled back the RET target, which mandates 41,000 gigawatts of renewable energy by 2020.
Industry minister Ian Mcfarlane confirmed yesterday the government would seek a "real" 20 per cent RET target of 26,000 gigawatts.
s.mccomish@fairfaxmedia.com.au
Source: The Standard