An Australian glass company employing more than 200 people posted a loss of more than a million dollars.
One of Australia’s oldest glass manufacturers, Oceania Glass, has entered voluntary administration with a major union blaming the situation on an influx of “cheap imported glass products.”
On Feb. 4, Lisa Gibb, Said Jahani, and Matt Byrnes of Grant Thornton Australia were appointed administrators for the Dandenong-based Oceania Glass Pty Ltd near Melbourne.
The company will continue to trade under the administrators, who will undertake an urgent review of the company’s finances and look at selling the business.
The company, which started trading in 1856, currently employs about 260 staff and produces around 165,000 tonnes of float glass every year. However, in the year to March 31, 2024, the company posted a loss of $1.23 million.
Lack of Protection Against Cheap Imports Blamed
Oceania’s parent private equity group Crescent Capital said a delay in reintroducing tariffs on cheap glass contributed to the company’s problems.
Oceania had successfully argued previously that a flood of cheap imports from China and Thailand was being “dumped” into the market at a lower price than local manufacturers.
Further, the Anti-Dumping Commission has yet to reintroduce tariffs on imported float glass—which is used in buildings—was lifted during the COVID pandemic.
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Oceania specialises in high-specification products like coated glass, and laminated glass.
With distribution centres in Melbourne, Sydney, Perth, and Brisbane, Oceania is the sole float glass manufacturer in Australasia.
Union Calls for Support for ‘Made in Australia’
The Australian Workers’ Union (AWU) has weighed in, with Victoria secretary Ronnie Hayden saying he would meet with state and federal ministers to discuss the future of Oceania and glass manufacturing in Victoria.
“Our immediate focus is on understanding the situation and supporting our members through this challenging period,” he said in a statement.
“However, we must also address the broader crisis in Australian manufacturing.
“While the government speaks of a ‘Future Made in Australia,’ we need concrete action to protect and strengthen our domestic manufacturing capabilities, particularly in essential industries like glass production.”
The union said it would “gather comprehensive insights” and secure explanations from Oceania Glass management and the administrators.
“This situation highlights a broader crisis in Australian manufacturing, with very few Australian-owned and operated glass manufacturing companies remaining.
“The influx of cheap imported glass products has contributed to local businesses being forced into administration, undermining our domestic manufacturing capabilities.”
Looking for a New Buyer
Meanwhile, administrator Gibb from Grant Thornton said there would be work put into making the transition easier for customers.
“If an appropriate buyer cannot be found during the voluntary administration period and the administrators are faced with the difficult decision to shut down the business, we believe this period will allow customers to make alternative sourcing arrangements and significantly reduce disruption to the broader construction industry,” she said.
“We appreciate this is an extremely difficult time for employees of the company and their families and we will provide them with as much transparency as possible during the Voluntary Administration process.”
A creditors’ meeting will be held on Feb. 14.
