Supplier of fixtures and fittings GWA Group Limited
(ASX:GWA) has revealed a significant restructure of its manufacturing operations.
Under the changes 164 employees will be terminated, representing about 10 per cent of the company’s workforce.
GWA plans to phase out its Norwood plastics operation in Adelaide over the next three years.
The Wetherill Park vitreous china manufacturing facility will stop production by the end of this year and the site will be sold.
GWA also plans to transition to sourcing plastics and vitreous china products from its established overseas suppliers.
The changes are expected to result in a charge of about $29 million in fiscal 2015. However, GWA expects to generate positive cash flow of about $24 million this year as a result of the Wetherill Park sale and generate annualised savings of $4 million.
GWA Group reported a net profit of $18.6 million in the 2014 financial year.
