Paintmaker DuluxGroup will cut dozens of jobs in Brisbane and Sydney as it relocates some paint operations and replaces two distribution centres.
Up to 60 jobs may be cut at the Dulux paint factory at Rocklea in Brisbane’s south as most production is moved to a new $165 million plant in Melbourne by 2017.
The new plant in Melbourne will create 64 new jobs.
Up to 80 jobs could also be cut at Dulux’s two distribution centres at Padstow and Moorebank in Sydney, which will be closed to make way for a new facility that will be owned and operated by Linfox.
The new distribution centre is scheduled to start operating in mid to late 2016, and Linfox is expected to employ some of the Dulux staff.
DuluxGroup managing director Patrick Houlihan said that once the jobs cuts, redeployments and potential hirings by Linfox were complete, the impact on overall job numbers hopefully would be small.
“Overall, these changes we are announcing across Australia are essentially headcount-neutral,” Mr Houlihan said on Tuesday.
DuluxGroup’s Australian operations employ around 3,000 people, including about 1,000 in Victoria, 1,000 in NSW and about 630 in Queensland.
Mr Houlihan said DuluxGroup’s commitment to building a new $165 million plant at the Merrifield estate in Melbourne’s north, contrasted with the move by many manufacturers offshore.
The new factory will produce nearly all of Dulux’s water-based decorative paints, which are currently manufactured at Rocklea.
Cost savings were expected from automation, better raw material utilisation and freight savings.
Dulux will retain the Rocklea factory, but operate it with fewer staff who will produce solvent-based paints.
Construction on the new factory, is expected to begin in late 2015 and be completed during 2017.
In Sydney, the new distribution centre will replace the existing Dulux facility at Padstow and the existing facility for the group’s Selleys DIY products at Moorebank.
Mr Houlihan said there had been significant volume growth for both Dulux and Selleys products in recent years, with both businesses having outgrown their existing distribution centres.
“The closure of our existing distribution centres will unfortunately result in the redundancy of roles at those sites,” he said.