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Reliance Worldwide Corporation Limited (ASX:RWC)

ALERT: Price-sensitive ASX Announcement for RWC
Current share price for RWC : $4.180 0.51 (13.90%)+
Announcement
Release
23 Jun 2026 8:43AM
Price at Release
$3.670
Full Release
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Summary
Reliance Worldwide Corporation Limited (RWC) announced a strategic move to close its brass casting, forging, and machining operations in Moorabbin and Braeside, Melbourne, as part of its manufacturing footprint rationalisation. This decision comes in response to a decrease in brass production volumes in Australia, largely due to investments in automation at RWC's Alabama facility and a strategic transition to third-party vendors in Asia. The changes are expected to generate an annual operating earnings uplift of approximately US$9 million by the end of FY27. As a result of the closures, approximately 85 employees will be affected. RWC plans to recognise a one-off net charge of US$100 million to US$110 million in FY26, including provisions for redundancies and asset write-downs. The company's overall strategy involves shifting production focus to reduce costs and improve supply chain efficiency, particularly in the Americas region.
Key Points
  • Closure of brass manufacturing operations in Moorabbin and Braeside, Melbourne.
  • Expected annual uplift to operating earnings of US$9 million by end of FY27.
  • Closure due to reduced brass production volumes and shift in sourcing strategy.
  • Investment in Alabama, USA facility for automation impacting Australian operations.
  • Transition to third-party brass component sourcing in Asia.
  • Impact on approximately 85 employees with a consultation process in July 2026.
  • Recognition of a one-off net charge of US$100 million to US$110 million in FY26.
  • Net annual EBITDA benefit of approximately US$9 million across the group by FY27.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.