One of Australia’s largest appliance manufacturers has blamed Victoria’s gas policy for the closure of their Albury factory, sending a blunt message that the reckless plan will cost consumers dearly.
Seeley International, who produce airconditioners and gas heaters, announced on Tuesday that 120 jobs would be lost from the local community when they closed their doors in December 2025 and relocated to South Australia.
Victorian Energy Minister Lily D’Ambrosio announcing the new gas connection ban.Credit: Joe Armao
Group managing director Jon Seeley put a fall in demand down to the state’s efforts to move more houses onto electric products.
He said the gas substitution road map was a major factor behind the decision to consolidate their businesses, which are 1000 kilometres apart, to ensure its financial stability.
Seeley was scathing of the government’s strategy, saying while he supported a transition to cleaner energy it was too much, too quickly.
“The accelerated disruption to our industry caused by the Victorian government’s inexcusable anti-gas obsession, and using taxpayers’ money to pay consumers to replace Australian-made gas heaters with imported reverse cycle systems, is extremely detrimental,” he said.
“This policy will only increase demand on an already overloaded, coal-fired electricity grid and drive emissions up, not down.”
Last year the state government announced they were banning gas connections for new homes and providing incentives to replace existing cooktops with electrical. More than 2 million homes in Victoria are connected to the gas network, the highest of any state.
Seeley said Victoria’s policy would increase demand on the electricity grid while coal-fired power was still a significant part of generation.
“Banning connections at new homes was the first red flag for consumers. It is that volatility and uncertainty,” he said.
“We believe in the importance of gas in the clean energy transition and recognise the need to plot a sensible path away from fossil fuels, including natural gas.
“But a premature exit from gas, without viable alternatives and credible solutions, is entirely reckless and will end up costing consumers the most.”
Seeley said affected employees would be offered roles in South Australia but understood not everyone could move locations and hoped to minimise disruptions by providing warning nearly two years in advance.
A government spokeswoman said electric appliances used less energy to produce the same amount of heat.
“So even though the grid is not 100 per cent renewables yet, there are still less emissions from an electric appliance,” she said.
“We’re working closely with the small number of gas appliance manufacturers in Victoria to support the expansion of their electric product lines to help them meet growing demand.
“We’ve always been clear gas has a role to play in Victoria’s energy transition. With dwindling supply and gas companies continuing to prioritise export markets over Victorians, getting households off gas not only helps to reduce their energy bills but helps ensure there is enough left for manufacturing and power generation.”
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