Dalby-based resources and infrastructure services group Ostwald Bros has gone into voluntary administration.
Managing director Brendan Ostwald said today the company had been affected by commercial issues on two major infrastructure projects which had impacted cashflow and forced the decision
“It is with deep regret we announce, we are placing Ostwald Bros Group and Ostwald Construction Materials into voluntary administration today,” he said.
“Over the past 27 years the family-owned and operated company has been a major employer and contributor to regional Queensland.
“With the significant downturn in mining and infrastructure, Ostwald’s has actively explored ways to keep the company trading including having downsized, sold major assets, reinvested profits in the company and more recently attempted to refinance and sell the business.”
PriceWaterhouseCoopers will act as administrators.
Mr Ostwald said staff and contractors were advised this morning of the move.
“We are deeply saddened by this decision and are acutely aware the impact it will have on our loyal employees, their families and the local community,” he said.
Federal Member for Maranoa David Littleproud said he was saddened to learn Ostwald Bros had gone into voluntary administration and understood about 470 employees – and their families – could be affected.
“I have made contact with my ministerial colleagues including Employment Minister Michaelia Cash and Human Services Minister Alan Tudge to make sure our local Centrelink office is fully equipped to assist those affected,” he said.
“This is a local, family-owned and operated company and a major supporter of rural Queensland and I know that I am not alone in my hope that Ostwald Bros can get back on track.”