Founded in 1881 and based at the north end of the city, the business is one of the largest non-ferrous foundries in Australia and New Zealand, supplying customers in both New Zealand and internationally.
In response to written questions from the Otago Daily Times, Giltech Precision Castings general manager Bob Adams said the firm entered consultation with its employees in early March after recognising the future sustainability of the business was in question.
The consultation process was widened beyond employee input into customers and suppliers to ascertain future requirements and needs for the product offerings to glean what the future — at least the next 12 to 18 months — might look like for the business.
Consultation closed late last month and all the feedback was reviewed, including customer indications of future orders.
After "extensive consideration" the decision was made to cease trading on May 12.
Giltech would then begin the closure process of the plant, equipment and customer files on hand. Customers had been advised no more orders would be received and stock on hand would be offered where suitable.
The foundry provided production castings, bespoke one-off creations and sold its own range of bronze tapping bands and other fittings to the plumbing industry.
Asked about the effect on staff, Mr Adams said there had been "a few" resignations received through the consultation process and, as such, 13 employees would become redundant.
Asked if there were any job opportunities at Mosgiel-based PW Engineering — the owner of Giltech also owns that business — Mr Adams said that was quite a different type of business, requiring a different skill set.
"However, it is our intent to support our staff as much as we can with finding alternative employment."
Anyone with potential job opportunities was urged to get in touch.
Southland and Otago Regional Engineering Collective board member Sarah Ramsay said the news was "gutting" for industry, not just in Dunedin, but a significant loss of capability for New Zealand "that we won’t get back".
"Giltech is Dunedin’s last foundry, they’re a centrepiece of the supply chain for many companies across Otago and Southland, but sadly, as local industry has moved out, there clearly just hasn’t been enough work to keep them going.
"The last three years have been incredibly difficult for many of our members.
"Manufacturing engineering is a highly capital-intensive business and balance sheets have taken a hammering from continued disruptions to global business as usual," Mrs Ramsay said.
That was why the industry needed the Government and the business community to support each other by prioritising procurement of manufacturing domestically, she said.
Business South chief executive Mike Collins said it was a sign of the times if the costs of salaries, compliance and supply continued to rise.
"Unfortunately not all business can sustain the environment we live in today," he said.
