Water equipment manufacturer with $128 million turnover placed in administration as industry pain continues
Another manufacturing business has collapsed, with a large maker of water and irrigation equipment being placed in administration, as the manufacturing sector continues to suffer from a high Australian dollar.
The collapse comes after the latest results from the Australian Industry Group showed the manufacturing index contracted during December.
In a statement, PPB Advisory said it had appointed Stephen Longley, David McEvoy and Michael Owen as voluntary administrators to PPI Corporation as of January 16. Expressions of interest for a sale of the business are being sought.
PPI has operated for 25 years as a manufacturer of water and irrigation equipment, operating under two key brands and turning over $128 million during the 2011-12 financial year. The business makes pipes, fittings, hoses and garden products, along with filtration systems for the plumbing, resources and agricultural industries.
Longley said the company has ceased manufacturing, while the workforce has been stood down without pay.
"During the stand-down period the administrators will be conducting an urgent assessment of the viability of the business to determine whether operations can resume, with a view to selling the business as a going concern."
"In the meantime, we will be holding urgent discussions with employees, union representatives, customers and suppliers."
PPB was contacted by SmartCompany this morning, but was unavailable to reply prior to publication. PPI was also contacted, but it referred to administrators.
PPB is now searching for buyers for the company, with assets including a large customer base across the retail, plumbing and agricultural industries, along with a headquarters in Brisbane and factories and sales offices across the country.
The company is the latest victim of the pain in the manufacturing sector. More recently, car parts makers have been under an enormous amount of pressure, while late last year several businesses including a pool equipment maker and a uniform company collapsed.