Whyalla-based Ottoway Engineering goes into administration
WHYALLA businesses are shocked and angry at the news local firm Ottoway Engineering — linked to an unsuccessful Future Frigates contender — has gone into administration.
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WHYALLA businesses are shocked and angry at the news local firm Ottoway Engineering has gone into administration.
Mayor Lyn Breuer said there were a “significant” number of suppliers to Ottoway who have been left in the lurch.
The Advertiser revealed yesterday that Italian shipbuilder Fincantieri, after it lost its bid to design the $35 billion Future Frigates, canned a deal with Ottoway and Adelaide’s MG Engineering to build cruise ship blocks in South Australia.
The cruise ship contract was expected to create up to 50 jobs and was a sweetener for the frigates deal — but Fincantieri had promised it would go ahead regardless.
BAE’s frigates contract win was announced on June 28, and Ottoway went into administration on the same day.
In a strange twist a separate Italian firm, Ferretti Group, took over Ottoway on that same day and appears to be carrying on business.
However, Ottoway’s suppliers have been told they will have to try to get paid via administrators Pitch and Partners.
Ms Breuer said Ottoway had appeared to be “in a little bit of trouble” long before Fincantieri pulled out, but that the town was assured all was well.
“The writing’s been on the wall for quite some time. Organisations that have been owed money have had some concerns,” she said.
“There are quite a number of companies and not-for-profits that will suffer considerably. There are significant amounts of money owed. It will impact on their businesses.
“We are hopeful some of them will get their money back.”
She said it was a shock to many organisations because, although they suspect things were not going well, in recent times Ottoway had won a contract for a wind farm, as well as the cruise ship contract.
“It was a shock to all of them, (there’s) a little bit of anger. People were not made aware of the direness of their situation,” she said.
Ottoway Engineering referred The Advertiser to administrators Pitch and Partners, who did not return calls.
Ferretti do not have a listed number in Australia but calls to numbers obtained by The Advertiser were not returned.
Fincantieri says the cruise block project was part of its industry planned, designed to help the Italian shipbuilder “gain familiarity with local partners”.
“As Fincantieri was not selected by the Australian Government, the project will not proceed, however, Fincantieri remains committed to fulfilling its remaining contractual obligations in Australia,” it said in a statement.