Bathroom and kitchen fixtures supplier GWA will shed 164 jobs as it closes its manufacturing operations in favour of overseas suppliers.
About 88 positions will be terminated by the end of the year when GWA closes its factory in the Sydney suburb of Wetherill Park.
Another 76 positions are set to go as the company phases out its Norwood plastics operation in Adelaide over the next three years.
The owner of well-known bathroom and kitchen brands, including Caroma, Dorf and Fowler, says the redundancies represent about 10 per cent of its workforce of 1,671 people across Australia.
It says the lay-offs are part of a restructure of its supply chain so that plastics and vitreous china products will be sourced from its established overseas suppliers.
"That transition will be conducted in a timely and orderly manner, with no supply shortages anticipated," the company said in a statement released on Wednesday.
The company said it had begun divesting its Dux Hot Water and Brivis Heating and Cooling businesses.
The redundancies, asset writedowns and costs involved with the establishment of a new innovation and technology centre in Sydney will result in about a $29 million charge for 2014/15.
However, GWA expects a positive cash flow of about $24 million for the 2015 financial year due to the sale of its Wetherill Park site with annualised savings of about $4 million.
GWA said these developments would negatively impact on its retained earnings and affect the group's ability to pay a fully-franked dividend.
But it said directors would "actively consider options to return proceeds to shareholders" subject to the successful sale of Dux and Brivis.
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