Reliance Worldwide to Close Melbourne Brass Operations, Expects $9 Million Annual Earnings Uplift
Reliance Worldwide (ASX:RWC) said it plans to close its brass casting, forging, and machining operations in Moorabbin and Braeside in Melbourne, along with smaller sites, to optimize its global manufacturing operations, according to a Tuesday Australian bourse filing.The company said it expects an annual uplift to operating earnings of about $9 million by the end of fiscal year 2027, reflecting a net annual benefit to the Americas region of $18 million offset by an estimated adverse impact of $9 million on APAC region results.About 85 employees are expected to be affected by the closure of brass manufacturing operations in Australia, with Reliance starting consultation with impacted employees and anticipating the process to be completed in July, the filing added.Reliance expects to recognize a one-off net charge of $100 million to $110 million in fiscal year 2026, which will be excluded from operating earnings, with a net cash outcome expected to be around $5 million.From fiscal year 2027, production will shift away from APAC, with intercompany revenue of the region expected to fall from about $38 million in fiscal year 2025.