More sackings at Forge

Last updated 13:15 18/02/2014

Relevant offers

World

Developing nations may be hit hard by Britain's EU exit Eric Watson: 'Brexit could provide a boon for Kiwi business' Brexit stuns investors, wipes US$3 trillion off stocks Brexit vote strips billions of dollars from UK's richest people Unexpected Brexit triggers Australian dollar fall Asia, US financial market fall as UK votes in favour of Brexit Sterling, stocks in free fall as UK on brink of Brexit British Pound hits lowest in decades, euro drops and yen surges as Brexit slams markets Burger King's latest fast food monstrosity is sadly genius KFC India is giving out boxes of chicken that charge your phone

Almost 1500 Forge Group employees have now been sacked as all but one of the collapsed company's projects grind to a halt.

Michael Smith from receivers KordaMentha said that number could grow.

"It probably will," he said.

On Friday, 70 workers at the Horizon Power station in the Pilbara were given notice, making it 1470 employees that have been retrenched from Forge's engineering operations.

"They've been retrenched and they'll get their entitlements through the federal government scheme but it will take a few weeks to come through," Smith said.

Still, he estimates around half of the affected employees will be offered positions by other companies that will take on Forge's work.

Forge went into administration last week with around A$500 million ($591 million) in debts, leaving administrators to complete the company's troubled Diamantina Power Station project in Queensland.

Smith said all of Forge's projects except Diamantina had stopped since Forge's financiers, including ANZ Bank, withdrew their support for the company.

Forge's clients included mining giants Rio Tinto, BHP Billiton and Gina Rinehart's Roy Hill Holdings.

The company, which had 1,753 employees in Australia, was previously involved in more than a dozen projects, including Rio Tinto's West Angelas power station project and Cape Lambert power station as well as BHP Billiton's Yarnima power station in the Pilbara.

Forge was also working on a A$1.47 billion processing facility at Gina Rinehart's Roy Hill iron ore project in WA, which was worth A$830m to Forge.

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

Ad Feedback

- AAP

Special offers

Featured Promotions

Sponsored Content