Big name motorcycle maker Harley-Davidson has committed to keeping its Adelaide factory open, saving 110 jobs.
The company has confirmed to the South Australian Government that it will continue to operate its New Castalloy plant which produced wheels, hubs and other motorcycle components.
A four-year rent-free deal at the State Government-owned property in North Plympton was central to the decision.
Manufacturing Minister Tom Kenyon said the deal secured the manufacturing jobs.
“Earlier indications were that the company may be downsized and eventually closed, but this week it received confirmation from parent corporation the Harley Davidson Motor Company to stay in our state,” Kenyon said this morning.
“They’re exporting wheels to probably the most iconic motorcycle brand in the world, so Harley Davidsons all around the world are getting around with wheels made in South Australia and that’s a big thing.”
A niche provider of high-finish specialty wheels, hubs and motorcycle components, New Castalloy raised fears it would cease its SA operations in 2011.
It was the second time the company’s future had been under a cloud.
From 2004 to 2006 the wheel producer was at serious risk of being closed down by the Environment Protection Authority because of excessive noise and odour levels, following complaints from neighbours.
The foundry was one of the State’s top 10 highest water users and its approach to waste management was considered by the EPA to be below par.
After it was bought out by new owners Harley Davidson in 2007 New Castalloy signed up to the Zero Waste SA Industry Program and began the process of reducing its environmental footprint.
Two years later it became the first company in the State to be awarded an Environment Protection Authority Sustainability Licence, recognising its environmental compliance and sustainability, and for engaging with the.
It also won a Clean Air Society award and the West Torrens Council Water Saving award.
But by 2011 the high Australian dollar and rising production costs threatened the company’s future and Harley Davidson considered closing the plant down.
Kenyon said the Government had been in constant communication with New Castalloy over the last few months and had reached a deal in helping to secure the future of NCA by waiving four years rent at the site.
“The employees at New Castalloy are already highly skilled but it’s important that people have the opportunities to continually improve their talents,” he said.
“While market conditions are obviously challenging for some companies around the world, New Castalloy’s success can be attributed to its commitment to superior quality products.”
Kenyon said New Castalloy, its employees and the Government have worked hard to consolidate an ongoing presence in Adelaide and the company now has the time to explore future business innovations.
The North Plympton-based company has successfully operated an extensive export program in recent times.
