More Bad Jobs News From Forge: Shorten 1

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Thursday, February 13th, 2014
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Opposition Leader Bill Shorten has lamented the loss of more Australian jobs following news mining services company, Forge Group, has been placed into voluntary administration.

“It’s a devastating announcement – our thoughts are with the workers and their families,” Mr Shorten said in a statement issued late on Wednesday.

The decision to appoint administrators comes less than a fortnight after Forge said it expected to post a full year loss of up to $25 million.

The company is understood to hold debt with the ANZ Bank and has been on the market since January as it struggled with the construction of power stations in Western Australia.

Mr Shorten said more than 1000 job losses would stem from Forge’s collapse.

“This has been an awful week for job losses in Australia – first Toyota and now this,” he said.

“I am so worried that there is still more bad news to come when it comes to jobs in Australia.”

Talk of a restructure at Forge has also cast a cloud over the construction of a $1.47 billion processing facility at Gina Rinehart’s Roy Hill iron ore project in WA, which is worth $830 million to the company.

In December, Forge announced writedowns of $127 million associated with its Diamantina Power Station and West Angelas Power Station projects.

This led to an 84 per cent dive in Forge’s shares in one day and since November its stock has fallen 78 per cent on bad financial news.

Forge shares were placed in a trading halt at 91.5 cents on Tuesday ahead of an expected announcement to the market.

The first meeting of creditors is scheduled to take place in Perth on February 21.

 

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  1. Ian White

    Forge like a lot of new comers fail why, too much work lack of funds low prices inexperienced directors and no control on costs.This was seen to happen by many in the industry it is not a surprise evan to the Forge workforce. Hopefully it can be fixed companies have pulled back from the brink before but it needs a fresh face with some guts and money.