Rheem to shut down its Perth factory and axe 100 jobs


100 manufacturing jobs will be lost at Rheem’s Perth factory, as Australia’s largest water heater and appliance manufacturer has announced it would close the facility by the end of the year.

Image credit: flickr User: Jennifer Deckard
Image credit: flickr User: Jennifer Deckard

According to the article on ABC, 50 sales and service personnel at the factory are expected to survive the cut, which Rheem’s CEO Matt Sexton said was necessary to ensure business remained globally competitive.

“The company deeply regrets the impact that this decision will have on so many of its long-serving and loyal employees,” he said in a statement.

“Rheem will do everything it can to minimise this impact, and will take individual and family circumstances into account as far as possible.”

Mr Sexton said the decision was heavily influenced by inconsistent state and federal policies on product performance and efficiency, household incentive scheme and changes to the Renewable Energy Target (RET).

“This decision is based on an assumption that regulatory settings for the water heater industry will remain stable for the foreseeable future,” he said.

“This also includes an assumption that the RET will survive the current expert review.”

The job cuts come at a time when the company is preparing to invest $60 million on upgrading its manufacturing operations at sites in Rydalmere and Liverpool in New South Wales and Moorabbin in Victoria over the next two years.

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