Mining services group Bradken is offloading its loss making operations in the United Kingdom and has flagged further financial damage from its major restructure.
Hit hard by the mining downturn, Bradken has already slashed its workforce, closed some of its manufacturing facilities and is in the process of buying a low cost manufacturing facility in India.
The company is also still looking for a permanent replacement for former chief executive Brian Hodges, who announced more than three months ago he would depart at the end of 2015.
Bradken has now decided to divest its UK operations, which have been unprofitable for some time and are not expected to recover in the medium term.
It owns two foundries plus a workshop and sales office in the UK midlands.
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Bradken's financial results for the six months to December are expected to include an additional impairment charge on its operations in the US, while underlying earnings are forecast to fall by $20 million from a year ago to $52 million.
Executive chairman and acting chief executive Phil Arnall said cost reductions are expected to deliver an improved result in the second half of the 2015/16 financial year.
