Claypave hits brick wall as it enters administration

A century-old Queensland brickworks has gone into administration in the latest body blow to the state’s manufacturing sector.

Premier Annastacia Palaszczuk visiting Claypave in Dinmore. Picture Tara Croser.

THE century-old Queensland brickworks Claypave has gone into administration in the latest body blow to the state’s manufacturing sector.

Adam Ward from insolvency specialist Worrells has been appointed administrator of the Dinmore-based business after it was hit by rising competition from cheaper imports and a downturn in building activity.

Mr Ward said the company would continue to trade while he investigated options for its future. “While the administration is in its infancy, it appears all creditors will be paid in full from the sale of assets or sale of the business,” said Mr Ward. “A number of parties have expressed interest in the business or company assets.”

Originally named Rylance Collieries and Brickworks, the company began operation in the 1880’s. The business’s current owners took over in 1985, focusing primarily on manufacturing clay pavers. The company has established export markets in Japan and employed about 50 people, some of whom have worked in the business for more than 20 years.

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In 2017, Claypave received $100,00 under the State Government’s Advance Queensland Ignite Ideas fund to develop new technology for creating ‘long format’ clay bricks.

“All requirements (of the grant) were met by 22 August 2018,” a Department of Innovation, Tourism Industry Development spokesperson said on Monday.

The company’s troubles come less than a week after Lindsay Partridge, the chief executive of Brickworks, said he feared for the future of Australia’s entire manufacturing sector and said his company was “actively investigating” acquisition opportunities in the United States.

Mr Partridge said Brickworks’ Australian manufacturing operations in the six months to January 31 had been rocked by the effect of runaway energy prices, particularly gas, adding to the impact of slowing demand from the nation’s rapidly cooling housing construction market.

A meeting of Claypave’s creditors will be held on Friday, April 5.