62-year-old family manufacturing business calls in administrators

A family-owned manufacturing business that has been operating for more than 60 years has collapsed into voluntary administration.

Tieman Industries was established by Neil Tieman from his family home in Victoria in 1953, building its first tanks and vats for the local dairy industry.

The business designs and manufactures bulk road tankers, as well as importing and installing tail lifts and operating a repairs and maintenance service. It employs 250 people nationally.

However, tough market conditions have taken a toll on the business, which appointed Rahul Goyal, Sebastian Hams and Bryan Webster of KordaMentha as administrators on Monday.

KordaMentha told SmartCompany the administrators will continue to trade the business while urgent expressions of interest are sought for the tanker business, the tail lift business and the repairs and maintenance business from potential buyers.

According to the administrators, Tieman Industries recorded “a significant loss” last year, which has been attributed to a number of factors, including market conditions, overstaffing and “very large overheads”.

Tieman Industries had been undertaking a restructure plan but a lack of funds meant the plan could not continue. According to the administrators, the high costs of the business will likely mean consolidating the company’s sites and cutting jobs.

According to the Herald Sun, around 80 jobs in Victoria and another 60 jobs could be lost as a result of the administration if the tail lift and service and maintenance businesses close.

The tanker business employs around 100 workers. The Tieman family is hoping these jobs can be saved by restructuring that part of the business.

Tieman Industries joint managing director Dale Tieman, who along with brother Colin took over the business from their father Neil eight years ago, told the Herald Sun the decision to call in administrators was “extremely hard”.

“But we know we’ve made the right decision. If we didn’t do this, everyone would lose their jobs,” he said.

Tieman said the business is committed to ensuring all employees receive their full entitlements.

“It’s going to be tough for them and us, because we have a lot of long-term employees who have supported the family and supported us,” he said.

“It’s a long-term plan. As much as we are hurting, we are determined to make what we have put on offer a success.”

The first meeting of creditors for Tieman Industries will be held in Melbourne on August 20.