Electric vehicle fast-charger maker Tritium DCFC has entered voluntary administration, the second major Australian manufacturing company that collapsed in a week next to Qenos.
McGrathNicol Restructuring has designated partners Shaun Fraser, Katherine Sozou, Matthew Hutton and Jamie Harris as receivers of Tritium in less than a day while the fast-charger company hired Peter Gothard, James Dampney and William Colwel as administrators.
“Our immediate focus is to stabilise operations and work closely with Tritium’s employees, customers, and suppliers as we attempt to secure the best possible outcome for all parties,” McGrathNicol Restructuring’s Fraser said.
“A sale process for Tritium’s business and assets was underway prior to our appointment—we will be re-engaging as a matter of urgency with interested parties and the broader market to seek to find a long-term capital and/or ownership solution for Tritium.”
The announcement came only a few days after Qenos, Australia’s sole manufacturer of polyethylene, entered voluntary administration.
“Unfortunately, the collapse of Tritium is not a surprise. The company, like many others in the charging industry, overestimated market demand and underestimated the growing number of competitors entering the direct current fast charging (DCFC) hardware market,” Loren McDonald, CEO of analyst firm EVAdoption, said in a LinkedIn post.
Last year, Tritium said it received a notice from Nasdaq, dated Oct. 12, that it was not in compliance with the minimum bid price requirement of US$1 per share over the past 30 consecutive business days, signifying a fall from its double unicorn status.
Unicorn status signals that a start up company is valued at over US$1 billion—Tritium at one point was valued at over US$2 billion.
Tritium’s down fall took place just as the federal government seeks to strengthen local manufacturing with the Future Made in Australia Act.
According to Prime Minister Anthony Albanese, Tritium is a “lost opportunity,” referring to the company’s decision to close its Brisbane factory and consolidate its operations in the United States after failing to secure a lifeline from the Australian state and federal governments.
Qenos’ Collapse to Severely Impact Manufacturers
Meanwhile, Australian Industry (Ai) Group CEO Innes Willox said that Qenos’ plunge will tremendously affect several manufacturers and blamed the long-term rise in natural gas prices for the company’s lost of its competitiveness.“The causes and consequences of Qenos’s closure are wide. A whole range of industrial and commercial products depends on the flow of resources and materials between oil and gas producers, refiners, chemicals businesses like Qenos, intermediate manufacturers of products like food and beverage packaging, and downstream users like food processors,” Mr. Willox said.
“Qenos is surely not the only industrial gas user to be unviable at these prices; and more businesses may shrink or collapse without the local product supply and demand for goods and services that Qenos provided. Full reliance on imported inputs will mean some businesses have no compelling reason to manufacture locally.”
Mr. Willox warned that sovereign supply chains may be at risk of disruption and that projects to recycle plastics are not sufficient to fill the gap that Qenos will leave.
Chemistry Australia also expressed disappointment over Qenos’ collapse and expressed sympathy towards the people who were laid off.
“We as a sector find ourselves in this position due to the consistent failure to address the competitiveness of Australian gas as a feedstock and energy source in this country,” Chemistry Australia CEO Samantha Read said.
“The chemistry industry will play a significant role in the transition to a circular and net zero economy. As a nation, it is imperative that we address the fundamental policy settings impacting ongoing investment and the cost of manufacturing in Australia.”
