Orica has announced they will be cutting jobs, and production, at its Gladstone Yarwun site due to a falling demand for explosives from the mining sector.
The chemical producing company is cutting the capacity of the Yarwun site due to an oversupply of ammonium nitrate, which is used to make explosives used in the mining and quarry industries.
“Today, we have begun consulting with our employees to understand and address any impacts on the workforce,” Yarwun general manager Dave Buick said in a statement.
“We expect there will be some impact on staffing levels from this decision.”
The operations have the capacity to produce more than 500,000 tonnes of ammonium nitrate a year, but is expected to reduce that number to about 280,000 tonnes.
“Orica is operating in a highly competitive market in which supply of ammonium nitrate is higher than demand levels, and we need to pursue strategies that secure the long-term viability of the business,” Mr Buick said.
About 29 jobs are expected to be cut from the 220-strong workforce.