Quickstep Holdings ceases Deakin operations following ASDAM takeover
The hasty exit of a defence industry supplier from Deakin University’s “future economy precinct” is not only a big blow to those who lost their job, but also to Geelong’s ambition of becoming an advanced manufacturing hub.
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Geelong’s hi-tech manufacturing sector has suffered its second significant setback in as many weeks as a company with a decade-long history at Deakin University departs soon after its multimillion-dollar takeover.
Quickstep ceased operations at the university’s Waurn Ponds campus last week in a move that saw up to 30 employees made redundant.
Engineers and production line workers were among those impacted, sources said.
The shake-up comes soon after Quickstep was acquired by Australian Sovereign Defence Advanced Manufacturing (ASDAM).
ASDAM, majority owned by private equity group CPE Capital, upped its bid to 57.5c a share in December, a hefty premium and well up from the 15c Quickstep was trading at on the ASX in mid-2024.
Shareholders backed the directors’ recommendation to accept the offer, which valued the company at $41.2m, at an April 14 meeting.
Deakin held a 4.65 per cent stake in Quickstep, which netted it $1.9m upon the sale.
ASDAM did not respond to questions.
Quickstep’s exit coincides with fellow Deakin-based company Carbon Revolution cutting up to 60 employees, or approximately one-tenth of its workforce.
Quickstep, which established a presence at Deakin in 2015, is a carbon fibre composite manufacturer that supplies lightweight components to the defence industry, including for the F-35 Joint Strike Fighter program.
Its website lists Sydney-based Demi Stefanova as general manager and defence giants Lockheed Martin, Northrop Grumman, BAE Systems and Boeing as customers.
Quickstep also has a relationship with Marand, which has a presence in Geelong and also forms part of ASDAM alongside TAE Aerospace, Levett Engineering, and Rosebank Engineering.
The bulk of Quickstep’s manufacturing occurs at its 16,000sq m plant at Bankstown Airport in NSW.
Deakin was used for research and development, as well as a niche manufacturing facility that had recently focused on drone production.
Quickstep took on a second factory space within Deakin’s “future economy precinct” last year to cater for what it said was increased demand for its drones.
It is unclear what will happen to technology, including a 3D printer and cutting-edge tooling, which remains at its former premises.
Quickstep cut its 200-plus workforce by approximately 20 per cent in July last year as part of a restructure designed to improve profitability.
To fund employee termination payments, Commonwealth Bank granted Quickstep a 13-month, $2.3m facility that could only be used for restructuring purposes.
Quickstep and Carbon Revolution were members of the Advanced Fibre Cluster that promotes itself as “an initiative of a group of highly innovative companies and organisations centred around Deakin University and the Geelong region”.
AFC chief executive David Buchanan attributed Quickstep’s departure to international economic headwinds, as he did with Carbon Revolution’s recent redundancies.
“Their (Quickstep’s) intent was to expand, rather than contract,” he said.
Quickstep recorded a 17 per cent revenue decline in the first half of this financial year to $38m, but its $8.2m gross profit was up.
Quickstep and Carbon Revolution have been cited by Deakin and local politicians as examples of Geelong’s shift from its industrial origins to an advanced manufacturing hub.
A Deakin spokesman said the precinct was busier as it’s ever been.
“We continue to seek partners who want to be part of the precinct and to work with the university to further build the region’s manufacturing future,” he said.
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Originally published as Quickstep Holdings ceases Deakin operations following ASDAM takeover
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