Boeing to transfer Bankstown operations to Melbourne

Seventy years of NSW aerospace manufacturing history will come to an end in 2012, when Boeing transfers its Sydney operations in Bankstown to Fishermans Bend, in Melbourne.

Sydney employees were informed about the move early yesterday, which angered unions who were not resulted in an angry response from unions who were not consulted about the decision.

The Bankstown factory employee about 350 staff and it is expected that about 50 of these positions will be permanently lost.

Boeing has confirmed that most of its Bankstown employees will be offered the opportunity to fill 300 new jobs in Melbourne, complete with a relocation package.

Those unwilling or unable to make the move will be offered a redundancy package and assistance with outplacement.

Australian Manufacturing Workers Union secretary Tim Ayres said the move was "a massive loss to the entire aerospace industry in this state".

NSW Premier Kristina Keneally expressed her disappointment over the news but said she was unable to reverse the decision, which was made for commercial reasons.

Meanwhile, Victorian Premier John Brumby celebrated the move that will consolidate the state's position as an aerospace hub.

 "[This decision is] great news for local jobs, great news for the economy and great news for our city's reputation as a great place to invest".

Boeing Aerostructures Australia managing director Mark Ross said the closure of the leased facility would take place over the next 24 to 30 months.

The company said employment changes in both states would not take effect for another six to eight months. 

"The decision was really driven by the fact that we have two vastly underutilised facilities -- two facilities that are operating at less than 50 per cent," Mr Ross said.

"And we simply couldn't continue to carry the overhead associated with running the two facilities at these sorts of levels, so we're going to move the work."

It was "a very difficult decision but we're convinced that if we're going to succeed here as a manufacturing company in Australia, that it was necessary to do this consolidation, and Fishermans Bend was the obvious choice", he said.

"That . . . is a facility that we own and it's a facility where we've invested over $200 million over the last several years in preparing for the 787."

There is "investment in new technology and capability to position it for the future, and bringing this work there will simply strengthen that business and allow us to be successful at that site".