Aerospace composites manufacturer Quickstep has been unable to find a buyer for its loss making Quickstep Aerospace Services maintenance business at Tullamarine in Melbourne, and will close the operation.

The Maintenance, Repair, and Overhaul (MRO) operation was originally purchased from Boeing Australia, with Quickstep investing $4 million and expanding the operation in 2021.

QAS works on Boeing, Airbus, Embraer and Bombardier civilian aircraft, as well as F/A-18 Classic and Super Hornets, C-130J Hercules and CH-47 Chinooks.

However hopes of broadening the scope of MRO work offered to include F-35 sustainment and other defence and commercial platforms did not eventuate, with losses from the Tullamarine part of $10 million in losses booked by the company in recent years.

QAS was put on the market in August as part of a major restructuring of the company’s core aerospace structures business which saw the company’s Sydney factory move from two shift to one shift operation and cut staff numbers by 20.

However Quickstep told investors this morning: “Following a period of engagement and due diligence and despite interest from several parties, at this time, no offer has been received for the business.

“Since the beginning of FY25, customer orders have declined, accelerating the losses at the Tullamarine facility.

“Given this, Quickstep has therefore made the decision to proceed with the closure and asset disposal of QAS.

“This decision has not been taken lightly given the loss of a unique Australian capability, however the mitigation of the losses associated with this MRO business supports the sharpening of our strategy and our focus on the long-term sustainable and profitable performance of the core Quickstep business.”

Quickstep said that following the restructure of its Bankstown Structures business earlier this year, its performance continues to exceed last year’s results in line with the company’s revised strategy.

“The company is working closely with all impacted employees, customers and partners to ensure a smooth transition during this period of change.

“Subject to any further discussions the Company may have, operations at Tullamarine are expected to progressively reduce in the lead up to 31 October 2024, with final closure shortly afterwards.”

Further reading:
Quickstep Aerospace Services expands at Tullamarine
Quickstep restructures its aerospace structures business
Picture: Quickstep