Michaela Meade
Update: The United Workers Union (UWU) has labelled the loss of 150 jobs at Qenos’ Altona site as a “devastating blow”.
UWU national secretary Tim Kennedy said the union would “urgently” seek further information about which jobs would be lost in order to properly support their members.
“Many workers have had a lifelong connection to Qenos, living and working in Melbourne’s western suburbs,” Mr Kennedy said.
“These job losses are another devastating blow to advanced manufacturing in Victoria.
“This announcement comes just days after a big budget splash from the Coalition government.
“Simply giving money to corporations is not enough to save advanced manufacturing jobs across Australia.
“We have an unfolding crisis that threatens the future of advanced manufacturing in this country, and the United Workers Union is calling for a proper plan for advanced manufacturing that provides secure, sustainable jobs into the future.”
ExxonMobil, which closed its Altona factory earlier this year, told Star Weekly it values the “long-standing relationships built with our partners across the petrochemical sector.”
“We have been engaging with Qenos since February to minimise any potential impacts of the transition of the Altona refinery to a modern import terminal,” a representative said.
“We have developed innovative solutions for medium-term arrangements to support Qenos during the transition.
“We have held a strong relationship with Qenos for more than six decades and recognise that their decision today is a very difficult one.
“ExxonMobil remains a critical supplier of energy to Australia and will continue to support Qenos going forward.”
In a joint statement, Gellibrand MP Tim Watts, Lalor MP Joanne Ryan, and Corio MP Richard Marles said Prime Minister Scott Morrison and Energy and Emissions Reduction Minister Angus Taylor “have another 150 job losses on their hands”.
“It is clear that after eight long years of this Liberal government, manufacturing jobs have been completely neglected by Scott Morrison,” the statement said.
“COVID-19 has shown the need for Australia to have a strong domestic manufacturing sector.
“The Liberals have failed to secure Australia’s domestic manufacturing capability.”
Altona MP Jill Hennessy and Williamstown MP Melissa Horne said in a joint statement said they “stand ready to assist” the locals impacted by Qenos’ decision to restructure its Altona plant.
“There is no denying that this will be challenging news, which comes amidst a changing industrial landscape here in the west resulting from closure of the Altona refinery,” they said.
“For our community and its rich industrial history, this is devastating.
“We know that the west has long been home to highly skilled workforces such as this, and it is our absolute priority to see that these advanced skills are fed into manufacturing employment opportunities wherever possible.
“We will work with Qenos, unions, and industry to understand the role that we can play in supporting workers and families as they grapple with this incredibly sad news.”
One-hundred and fifty Altona-based jobs will be lost as Australia’s largest petrochemical company “reconfigures its manufacturing assets” in the suburb.
Qenos today announced it would close and mothball one of two ethylene units in Altona, as well as one of the two polyethylene plants, resulting in a 15 per cent reduction in total domestic production.
At present, the Altona site employs 400 people and Qenos employs 650 people Australia-wide.
In February, ExxonMobil announced the closure of its Altona refinery after 72 years.
At the time, it was flagged ExxonMobil’s closure would have massive flow-on effects for the industry, especially Qenos.
Qenos chief executive Stephen Bell today said the decision to reconfigure parts of the Altona business enabled the company to continue to operate its remaining facilities.
“The impact of the Altona Refinery closure, combined with current ethane supply volumes, means we simply do not have enough total feedstock supply to keep these plants fully utilised,” Mr Bell said.
“We’ve not taken this decision lightly and deeply regret the loss of jobs.
“I’d like to take the opportunity to thank our dedicated employees who have contributed to the operation of these assets for over 60 years.
“Our priority going forward is to support our affected employees through this transition.”
The changes are expected to come into effect later this year.
Mr Bell said while reconfiguration of Altona assets was necessary, it would further reduce Australia’s national self-sufficiency in key manufacturing and economic inputs.
“Qenos’ goal is, and always has been, to keep manufacturing ethylene and polyethylene in Australia,” Mr Bell said.
“Our ability to do so is dependent on the supply of gas and ethane at internationally competitive prices.”
Qenos will continue manufacturing for its major customer market segments including pipe, blow moulding, injection moulding, rotational moulding and film extrusion.
