Australian Industry Group chief executive Innes Willox has warned more manufacturers may go to the wall because of high gas prices after the collapse of plastics maker Qenos, and urged federal and state governments to urgently replace dwindling Bass Strait gas and transition industry to green replacements.

Mr Willox said the collapse of Qenos reflected the “erosion of key pillars of Australia’s industrial landscape” and high prices triggered by Queensland’s launch of eastern Australia’s liquefied natural gas export industry a decade ago. The ripple effects from the shutdown of such a vital supplier of plastics risked much more damage, he said.