More than 100 jobs will be lost following a decision by motorcycle manufacturer Harley-Davidson to close its New Castalloy factory in Adelaide in South Australia next year.
South Australia’s manufacturing minister, Kyam Maher, said the state government was advised of the decision on Tuesday night.
New Castalloy was bought by Harley-Davidson in 2006 to secure its supply of wheels and hubs for some of its range of motorcycles.
The plant was threatened with closure in 2011 when Harley-Davidson announced plans to move its manufacturing operations to China.
But the Milwaukee-based group reversed its decision in 2013 and signed a new lease deal with the state government, “which owns the site”, to keep the plant open.
Since then, government support for New Castalloy has been worth about $500,000 a year.
Maher said the government would offer New Castalloy workers the same level of support offered to other auto sector workers who lost their jobs in recent years, including those at Holden.