Reliance Worldwide to shut Melbourne manufacturing sites, 85 jobs affected

Reliance Worldwide Corporation (RWC) will close its brass casting, forging and machining operations in Melbourne as part of a broader effort to streamline its global manufacturing footprint, with around 85 employees expected to be affected, as reported by the firm.

The ASX-listed plumbing and water flow solutions company said its facilities in Moorabbin and Braeside, along with several smaller sites, would be shut after a sustained decline in brass production volumes made the operations economically unviable.

The consultation process with affected employees has begun and is expected to conclude in July 2026.

Falling brass demand

The company attributed the decline in Australian brass production to major investments in its Alabama manufacturing facility in the United States, where automation has enabled production of SharkBite Max brass push-to-connect fittings closer to key North American markets.

The SharkBite Max design also uses around 20 per cent less brass per fitting, further reducing demand for Australian-made components.

According to the firm, brass production volumes were also impacted by its 2025 decision to shift the manufacture of brass SharkBite push-to-connect components for the Asia-Pacific market from Melbourne to third-party suppliers in Asia.

The company expects its overall brass requirements to continue declining as it advances plans to replace brass with stainless steel across several major product ranges.

Financial impact

RWC expects to record a one-off net charge of between US$100 million and US$110 million in FY26 as a result of the closure programme.

The charge will include approximately US$5 million in redundancy and property exit costs, around US$25 million in asset and inventory write-downs, and between US$70 million and US$80 million in impairment charges related to intangible assets, including goodwill.

The company said only around US$5 million of the total charge is expected to have a cash impact, with the remainder classified as non-cash.

Earnings boost expected

Despite the significant restructuring costs, RWC expects the move to strengthen profitability from FY27 onwards.

The closure of Australian brass manufacturing operations will substantially reduce intercompany revenue within the Asia-Pacific region, which generated around US$38 million in such revenue during FY25. The company estimates this will result in a US$9 million adverse EBITDA impact for the region.

However, lower manufacturing and sourcing costs in the Americas are expected to more than offset the decline.

Overall, RWC forecasts a net annual EBITDA benefit of approximately US$9 million across the group by the end of FY27. This includes an estimated US$18 million annual earnings benefit in the Americas, partially offset by the US$9 million impact on Asia-Pacific operations.

The company said the improved earnings outlook reflects the stronger economics of third-party sourcing arrangements and reduced exposure to US tariffs under its revised global supply chain strategy.