Fishing equipment supplier CCR has confirmed it has cut production of industrial products such as fishing nets and bait for the global fishing industry amid a wave of commercial fishing equipment flooding the market.
Key points:The company says it is investing $2 billion in the industrial market over the next five yearsIndustrial equipment supplier says its workforce has shrunk in the past two years and the market has not recovered from the industry’s collapseCuts will mean it will have to restructure its businessCuts to its business will affect its workforce, which will also include the production of fishing equipmentIndustrial Equipment Recovery (IERC) has been a mainstay of Australian fishing since the 1930s, supplying to industry across the country.
The industry has been struggling to recover from the collapse of fishing industry after the Great Barrier Reef was destroyed by the 2009 cyclone.
The Australian government recently declared the fishing industry was “vulnerable” and warned it could not return to profitability until at least 2020.
“We’re not able to sustain our business as it is today,” CCR chief executive officer Rob Chisholm said in a statement on Wednesday.
“It’s time for a rethink and the company is committed to working with government to support and support our workforce in the future.”
The company said the cuts were part of its ongoing restructuring plan, which included reducing its workforce by more than 500 positions and laying off up to 15 per cent of its workforce.
“The impact on our workforce will be substantial and will have a significant impact on the quality of our products, our business and the profitability of our business,” Mr Chishod said.
“Our aim is to have the workforce at least up to a 50 per cent workforce by the end of 2019, which is the timeframe we are undertaking this restructuring.”
The cuts were announced on Wednesday morning by the company in an earnings release.
Mr Chishollm said the company was committed to reducing its losses over the coming years, which he said would reduce the amount of money it had to borrow.
“As the industry is recovering from the cyclone, our ability to access capital markets will be affected,” he said.
“This is a time of transition, which means that our cash flow will be impacted.”
The changes to the company’s business are set to take effect from March next year.
The company will also need to restructuring its workforce in order to meet the new business plan.
Calls for help to tackle industrial declineIndustrial and construction equipment supplier HUB Group said on Wednesday it would lay off up 25 per cent staff in the coming weeks.
The company had been in talks with the Department of Industry, Innovation and Employment about a number of changes to its operations, but had not been able to agree a solution.
“Today, we have decided to close HUB as a standalone company and will be looking to partner with other companies in the industry to support the workforce in a more sustainable way,” it said in its statement.”HUB Group has always been committed to supporting our local community, and we continue to work closely with our local communities, including the fishing community, to support our businesses.”
The Government said it would support industrial businesses in their recovery from the recent cyclone and that there would be support for fishers in the recovery process.
“There is no silver bullet solution to our industry’s problems,” Industry Minister Scott Emerson said in the statement.
Industrial industry in QueenslandIndustry experts say the industry has lost about 50 per of its jobs since the last cyclone in 2017, and the downturn in the fishery has led to more people leaving the industry.
“With the downturn coming, it is very important that the community understands that there is a huge economic and social cost to the industry,” Mr Emerson said.