Jobs saved in Adelaide engineering firm sale

Adelaide-based Century Engineering has announced the purchase of Priority Engineering Services, in a deal that will initially save up to 40 manufacturing jobs in Adelaide’s northern suburbs.

Priority Engineering Services, based in Elizabeth West, was placed in receivership in March this year with the intention of seeking a buyer for the business.

Century Managing Director David Heaslip said the acquisition was a strong show of confidence in the future of South Australia’s manufacturing sector.

Mr Heaslip said Century was looking to the future with the acquisition, and had confidence in the level of manufacturing opportunities in South Australia.

“It is our intention to initially re-employ, where possible, up to 40 of Priority’s former staff.  Our long term goal is to rebuild the business to its former size,” Mr Heaslip said.

“Priority Engineering Services has had an excellent reputation, particularly in the defence, mining and automotive sectors for many years.  Unfortunately it was unable to recover from trading difficulties dating back to the GFC.

“The company has a very good manufacturing capability, and we believe there is sufficient work and future contract opportunities in the pipeline to keep the company operating in a viable manner.

“We are currently bidding for a substantial package of work for the ‘Land 121’ Australian Army vehicle fleet upgrade, and this newly acquired capability is a key component of our bid. We also see opportunities for further engineering work in the power, water and rail sectors.”

Mr Heaslip said Century intended to continue to trade at Priority Engineering Service’s Edinburgh North site and had commenced re-employing former employees of the business.  To date, 15 people have been re-employed.

“We are actively seeking the interest of former employees, in particular boilermakers, machinists and programmers, who may wish to return to work,” he said.

“Ultimately Century’s aim is to build our workforce at both our Adelaide sites as we continue to develop the business.

“We see the capability of the former Priority Engineering Services as providing further improvement to the already substantial capability of Century, creating one of the State’s premier general engineering and manufacturing facilities.

Background

As a result of the Priority Engineering Services acquisition, Century will have two manufacturing sites in Adelaide with a total factory size of just over 10,600 square metres, featuring:

• High-end machining capability;
• Specialised fitting and assembly;
• Wide ranging fabrication skills from heavy plate work to pressure vessel manufacture;
• Manufacture of complex products;  and
• Specialised vehicle equipment manufacture

The acquisition will further improve Century’s exposure and service offering to its main markets in:

• Defence;
• Power Infrastructure;
• Mining;
• Water infrastructure and water treatment facilities; and
• Rail

Century has experienced strong support from existing and new customers from other market sectors and believes it can provide a comprehensive solution to our customers as it develops relationships with key customers to that of partnering with them to provide long term solutions.

FURTHER INFORMATION: Please contact David Heaslip on 08 8340 6666
ISSUED BY HUGHES PUBLIC RELATIONS: Please contact Mark Williams on 0401 147 558