Motorcycle maker Harley-Davidson to close New Castalloy factory, slash jobs

ABOUT 120 taxpayer-supported jobs will go at the North Plympton-based New Castalloy factory in a cost-cutting move by US-based parent company, motorcycle manufacturer Harley-Davidson.

The New Castalloy factory grounds at North Plympton. Pic by Kelly Barnes/The Australian.

ABOUT 120 taxpayer-supported jobs will go at the North Plympton-based New Castalloy factory in a cost-cutting move by US-based parent company, motorcycle manufacturer Harley-Davidson.

The blow to local jobs comes days after it was revealed that the factory site — owned by the state government — is at the centre of fresh investigations into disappearance of the Beaumont children.

Staff were informed on Wednesday the factory would stop manufacturing in the first half of 2019.

Manufacturing Minister Kyam Maher said the state government received a call about the closure from New Castalloy last night.

“Since 2013, the state has been providing $500,000 annually to Harley-Davidson to keep the jobs going and support the operation.

“There is nothing more we could have done to save the jobs.

“Our focus is on providing support to workers — as we did to Holden workers.”

Mr Maher did not rule out support for the company this year, saying there would be further discussions with the company.

In July 2013, the company reversed its then-decision to close the operation after a lease deal and funding agreement with the government and a wage deal with the workers union,

Harley-Davidson bought the New Castalloy business in 2006 to secure its supply of wheels and hubs after its previous supplier Ion went into receivership in 2004.

The state government bought the land for almost $9 million in 2006.

Harley-Davidson overnight released its full year results, reporting an ongoing slide in global demand for its motorcycles and a decision to consolidate all operations into its York, Pennsylvania facility. Another US factory will also close.

The Milwaukee-based company sold 241,498 motorcycles 2017 and expects the figure to continue declining to 231,000 to 236,000 motorcycle shipments in 2018.

“The decision to consolidate our final assembly plants was made after very careful consideration of our manufacturing footprint and the appropriate capacity given the current business environment,” said president and chief executive Matt Levatich.

The US facility closure will begin this year close by the third quarter of 2019.

The closures are expected to lead to ongoing annual savings of between US$65 million to US$75 million after 2020.