ABC #403

NEWS
VOLGREN QUEENSLAND
RESTRUCTURE ANNOUNCED
STAFF AT VOLGREN’S Eagle Farm
site were informed recently that
the company’s final bus will be
delivered to Brisbane City Council
in May 2021, as the bus supply
contract between the two entities
expired as per the contractual
terms – and contract extension
options were not taken by
Council, Volgren has confirmed.
The country’s largest bus body
builder will thus restructure
its Queensland operations as
the joint-venture partnership
concludes in June this year.
Volgren has been operating
as ‘prime contractor’ to Brisbane
City Council since 2008 and in
that time it has supplied more
than 850 buses to the council, it
confirms.
The purpose-built facility at
Eagle Farm has manufactured
and delivered more than 1,100
buses for the Australian market.
According to Volgren, the
manufacturer remains in talks
with the council about ongoing
maintenance and servicing of the
current fleet, but has raised the
possibility of job losses.
NO MIDDLE GROUND
Volgren’s CEO Thiago Deiro says
the company explored several
options with the council to
continue operating but, despite
the best intentions from both
parties, a middle ground has not
been reached.
“Covid-19 has had a major effect
on all organisations around Australia
and the world – and government
bus operators haven’t escaped the
consequences,” Deiro stated.
“It has affected budgets in all sorts
of ways – passenger numbers alone
have been down significantly.”
Deiro says that although Volgren’s
attention would eventually turn to
Brisbane City Council’s next tender
for bus manufacturing, at the
moment the management team
was concentrating on staff.
“Our focus is firmly on our Eagle
Farm employees and we will make
every effort to support all members
of our team and their families
as we work through a complex
restructuring plan,” he explained.
“We are determined to retain a
presence in … Queensland and we
believe a number of staff can, and
will, remain in after-sales support
and servicing roles.
“There may also be an opportunity
to redeploy staff to Volgren’s
manufacturing sites in Melbourne
and Perth.”
In addition to those directly
employed by Volgren, Deiro says
the discontinuation of the contract
would affect workers connected to
Volgren in its extensive supply chain.
“We are also very conscious of
the fact that for many Queensland
Top::
As the contract
with Brisbane
City Council nears
expiry, Volgren will
deliver its final bus
to the council in
May 2021.
Right::
Volgren CEO
Thiago Deiro.
businesses and their employees, this
contract was a significant source of
work and revenue,” Deiro said.
“These are, in many cases, people
and teams with highly specialised
skills and we are in close contact
with them all about how best to
manage the period after which
we stop manufacturing buses for
Council.”
He adds that 2020 had been a
difficult year for much of the bus
sector, but had left him and many
within industry in little doubt that
manufacturing had a stronger
future than ever in Australia.
“As the vaccine begins to be
rolled out, Australia can begin the
post-Covid economic recovery
in earnest and I think advanced
manufacturing can play a central
part in the rebuilding effort,” Deiro
stated.
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ABC March 2021 busnews.com.au