No buyer found for Oceania Glass, 56 jobs cut ahead of Dandenong factory closure

Collapsed architectural glass maker Oceania Glass has been unable to find a buyer since going into administration earlier this month, with 56 employees made redundant ahead of the closure of its Dandenong factory.

According to a statement from administrators Grant Thornton on Thursday, there is a potential for another 95 redundancies “over the coming weeks” as production at the nation’s only architectural glass company is wound down. The company reportedly employs 260.

A co-located distribution facility at Dandenong will operate as usual “over the forthcoming weeks” as a sale of Oceania’s nationwide distribution business is explored, administrators added, and they will continue to work “with several interested parties through a due diligence process.”

The Australian Workers’ Union said it was “outraged” at the administrators’ announcement, which it described as an “ambush”.

“It is utterly outrageous to think you can lay off 40 plus hardworking Australians with no financial support or entitlements and expect it to go unnoticed,” said AWU State Secretary, Ronnie Hayden.

The Herald Sun reported that Oceania owed 230 creditors approximately $60 million, adding that it is “understood about 250 employees are owed $45m worth of workers entitlements, taking total liabilities to more than $100m.”

Oceania, which is owned by private equity firm Crescent Capital Partners, went into administration on February 4. The former Viridian Glass division of CSR was acquired by Crescent in 2018.

Organisations including the South East Melbourne Manufacturers Alliance, the Australian Glass and Window Association and the AWU have cited cheap imports among contributors to the glass company’s demise.

SEMMA contrasted the end of Oceania with the Whyalla Steelworks administration on Wednesday last week, followed the next day by an announcement from the federal and South Australian governments of $2.4 billion in support for the steelworks.

“Why isn’t Albo playing the Man of Steel this time? Does he have a glass jaw?” asked SEMMA CEO Honi Walker in a statement on Thursday, requesting the prime minister “apply tariffs to stop the dumping of cheap Chinese products”.

SEMMA’s statement reads “It’s only $100million to save Oceania Glass, and the hundreds of local jobs through the Dandenong – South East supply chain SME’s AND Australia’s Sovereign Capability to manufacture glass.”

Picture: credit Oceania Glass

Further reading

SEMMA says action needed on cheap imports following Oceania Glass collapse

AWU urges support for sector following Oceania Glass collapse

Oceania Glass enters voluntary administration amid financial review

Act on “cheap imported products” or risk domino effect on building sector, housing supply: AGWA

Crisis in Victorian manufacturing: Opposition calls for action amid rising insolvencies

Federal, SA governments pledge $2.4 billion to assist Whyalla Steelworks’ transition