Home > Queensland donga business shuts on the back of poor industry demand

Queensland donga business shuts on the back of poor industry demand

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Nomad Building Solutions has placed its Queensland mining village business into care and maintenance as the company moves to cut costs.

The Queensland arm of the company, called Nomad Eastern States, has been placed on ice with its workers sacked.

Nomad said the business was expected to lose $400,000 a month if it kept operating.

"The combination of poor industry wide demand and the lack of available larger projects has resulted in intense competition at unacceptable margins and returns on shareholder capital," Nomad said.

"Several competitors have recently closed or substantially reduced their factory operations, or alternatively are manufacturing stock to keep their operations open.

"The near-term outlook continues to be bleak in a very competitive market coupled with a severely reduced pipeline of opportunities."

While managing director, Peter Hogan, resigned from the job on Friday but will stay on the board as a non-executive the company said

The company said improved earnings should improve going forward off its two remaining businesses McGrath Homes and Nomad Rental.

Australian Mining asked Nomad how many workers would lose their jobs as part of the decision to place Nomad Eastern States into care and maintenance. The company was unavailable for comment at the time of publication.

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