THE CLOSURE of the world's largest diesel engine designer and manufacturer's Dubbo branch has been described as a "huge loss" for the city, according to a local transport industry operator.
Cummins South Pacific communications and public relations manager Murray Clifford told the Daily Liberal the branch would shut its doors after six years as the company restructured itself.
All eight employees who were impacted, he said, were offered continuous employment with the company.
"It's very difficult for Cummins as a whole to make a decision like this," he said.
"We're responding to current deteriorating global economic conditions and it will affect many people but it is a necessary action for the company."
Senior management was still working with employees on the details of their redeployments.
Cummins South Pacific managing director Peter Jensen-Muir said it could be hard for some employees to find work at Dubbo which meant they may be forced to move elsewhere.
Workshop technicians could work as field service technicians, he said, who would work from home.
Mr Muir said the branch would close at the end of the year.
MacInnes Transport Pty Ltd operations and logistics manager David Allman said the closure of the branch would be a “huge loss” for Dubbo.
“The amount of Cummins powered vehicles here in Dubbo and that pass through is huge and would, I’d imagine, affect other businesses as well, as Cummins powered trucks would not be as sought after,” he said.
Dubbo Chamber of Commerce and Industry president Sandy Dunshea said the closure of the Dubbo branch was a “strange and surprise move”.
“I think given where Dubbo is located geographically as a transport hub I would’ve thought they would’ve built their presence instead of closing it down,” he said.
As the mining boom begins in two years, he said, it was “funny timing” to close the branch.
Mr Dunshea said even though senior management at the company justified closing the branch he still thought it was a strange move.
Cummins employees at the Dubbo branch could not be reached for comment.