One of Goulburn’s iconic engineering firms is leasing out its business in response to economic challenges.
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DME Kermac Engineering is pulling its manufacturing out of the city and renting 17,500 square metres of its north Goulburn premises to Mass Steel, a structural engineering firm with bases in Canberra and Sydney.
The company will employ all 20 or so workers, with full protection of entitlements.
They were told of the arrangement just before Christmas. The lease, which will also see the name changed to Mass Steel, takes effect today.
DME Kermac Engineering owner and managing director Don Earle said it would remain essentially the same business, but would do things a slightly different way.
“I just think it will be better for the Kermac business to concentrate its focus on other areas, other parts of the industry,” he said.
“It’s been terrific but it’s the natural course of things to move with the times. The important thing is to do the best thing by the workers and the business.”
DME Engineering still has large facilities in Sydney, Queensland and other parts of Australia.
Employees were also given the option of working at the Sydney facility.
The company bought Kermac in mid 2005 after the latter went into voluntary administration in March 2004.
Mr Earle described the current economic climate as tough but this was typical of the industry’s booms and busts he’d experienced over 20 years. Nevertheless, Kermac worked on several significant projects last year, including Sydney’s desalination plant, Westfield shopping centre in central Sydney and supply and installation of panels and other infrastructure for the New Year’s Eve fireworks display on the Sydney Harbour Bridge.
Mass Steel general manager David Campbell visited Goulburn late last week to discuss arrangements. He said Goulburn was an ideal location for his company’s expansion, as it had facilities in Canberra and Sydney.
“Goulburn also has a good blue collar workforce compared to Canberra, which is more white collar and retail,” he said.
For the full story, please see the print edition of the Goulburn Post, available from our Auburn Street office and from leading newsagencies across the region.
