Victorian manufacturers launch scathing attack on Albanese government after collapse of Oceania Glass

Victorian manufacturers have slammed the Albanese government for “overlooking” the sector as they reel from the collapse of Dandenong South-based glass maker Oceania Glass which has put 260 jobs at risk.

Victorian manufacturers have launched a scathing attack on the Albanese government, saying the local industry is being “overlooked” as it struggles to compete against cheap overseas imports, high taxes and soaring energy costs.

The warning follows the collapse of the nation’s largest glass maker, Dandenong South-based Oceania Glass.

Oceania, which is the nation’s only maker of architectural glass used for homes and offices, entered administration last week, putting 260 jobs at risk.

Union bosses will this week meet with federal ministers to discuss the future of glass manufacturing in the state, amid “serious concerns” Labor’s Future Made in Australia plan lacks “specific support for domestic manufacturing”.

The collapse of Oceania Glass has sent shockwaves through Victorian manufacturers. Picture: Supplied

South East Melbourne Manufacturers Alliance chief executive Honi Walker said any closure of Oceania would ripple through Victoria’s manufacturing sector, putting pressure on jobs in those firms which supplied it.

It would also weaken the nation’s sovereign capability and lead to higher construction costs and lengthier builds with unsafe overseas products, Ms Walker said.

“Manufacturing is being overlooked,” she said.

“We will lose our manufacturing hub heartland here in Victoria.

“We simply can’t compete on price from China and other Asian countries.”

Ms Walker, who represents about 240 manufacturers, said both the price and supply of gas in Victoria was a major concern for local manufacturers and would have been a “huge concern” for Oceania Glass.

Woodside Energy last week said it was too late to avoid an economically damaging gas shortfall in Victoria following a decade of political opposition to the fossil fuel industry.

The alliance has called on the federal government to reinstate anti-dumping laws, establish an advanced manufacturing hub in the south east, and slash the company tax rate to 15 per cent to reduce cost pressures and increase competition.

An Oceania Glass distribution centre in Brisbane. Picture: Supplied

Oceania is understood to owe creditors upwards of $125m, according to initial investigations from administrators.

The company last year successfully argued that Chinese and Thai competitors were dumping glass products into the Australian market at subsidised prices, with the Anti-Dumping Commission initiating an investigation.

Grant Thornton administrators Lisa Gibb, Said Jahani and Matt Byrnes are running the business and looking to undertake an urgent sale process.

“We understand the role the company plays in the Australian construction sector,” Ms Gibb said.

“In continuing to trade the business with a view to a going concern sale, we will work to mitigate the potential disruption to customers and the broader sector.”

The cost and supply of gas in Victoria is a major concern for local manufacturers. Picture: Supplied

Australian Workers’ Union Victoria secretary Ronnie Hayden will meet with federal ministers this week to discuss the future of Oceania Glass.

“Our immediate focus is on understanding the situation and supporting our members through this challenging period,” Mr Hayden said.

“However, we must also address the broader crisis in Australian manufacturing.

“We need concrete action to protect and strengthen our domestic manufacturing capabilities, particularly in essential industries like glass production.”

Australian Industry Group chief executive Innes Willox said companies were facing “an increasing burden of taxes, red tape and unsustainable energy costs”.

“The closure is another warning that we have to get our basic economic settings right,” Mr Willox said.

“Businesses are doing it tough and we can’t expect them to survive and thrive if we keep putting obstacles to success in their way.

“In a geopolitical environment of trade wars and supply chain stressors, we must ensure our anti-dumping system is fit for purpose and able to respond to changing market situations.”

A spokesman for federal Industry Minister Ed Husic said: “While these are difficult developments for workers of Oceania Glass, we’re advised the administrator is exploring ways to maintain operations”.

“The Anti-Dumping Commission administers an evidence-based investigation process arms length from government and consistent with international rules overseen by the World Trade Organisation,” the spokesman said.

Originally published as Victorian manufacturers launch scathing attack on Albanese government after collapse of Oceania Glass