Oceania Glass’ Voluntary Administration: Will You Be Affected?
For the past 169 years, Oceania Glass has been producing high-quality panels for the local industry. As the only domestic glass manufacturer, they were the go-to for many factory owners – a strong backbone that never shattered under the pressure of a demanding property sector.
Sadly, cheaper Thai and Chinese imports were the company’s undoing. Taking up roughly 80% of the market, these imports dominated while Oceania’s share shrank to just 20%. For many, that 20% was a security blanket, cocooning against potential delays in shipping, or less-than-ideal panel quality. Now, that security blanket has been tugged off, a casualty of the increasingly turbulent global economy.
“We simply can’t compete on price from China and other Asian countries,” South East Melbourne Manufacturers Alliance chief executive Honi Walker told the Dandenong Star Journal.
Oceana Glass was, however, competing with overseas imports on quality. Producing panels for architectural use, their end product was in line with recently established sustainability goals. With as much as 10-15% of total heat lost in typical homes, Oceania’s low-E windows made an impact – and they were proud of their process.
A source of quality, energy-efficient glass
In a video released in 2024, the company describes their manufacturing workflow. Starting with 500 tonnes of raw material, melted at 1600 degrees, sand turns into molten glass. Each batch spends around 3 days in the furnace, then flows into a molten tin bath at 1100 degrees celsius, which helps it create a perfectly flat surface.
After that, an energy-efficient, low-E coating is applied once the glass is semi-molten, at about 700 degrees. The coating is applied in super-thin layers, thinner than a human hair. This coating helps to control the flow of heat in buildings.
Once coated, panels are checked and then shipped to factories where machines like our waterjets and CNCs process it for architecture and construction clients.
While Oceania operated, these local factories could rely on a steady stream of panels flowing into the workshop. Now, the panels they’ll be working with may not be low-E at all – and while the upfront costs may be lower, overall costs could be higher. One thing is for certain: Australia’s glass industry is about to change.
How Oceania Glass’ administration could impact you
While Oceania continues to trade during its administration period, the thought of its closure puts many on edge. Events in 2020 showed us the value of having shipped stock on hand, which is why we always keep a range of popular CNC machines on-shore for fast installation. The same rule goes for all imports, especially where raw materials are concerned. In order for that to happen, many factories will need to increase storage capacity.
For some, that may mean investing in A-frames or racks that can safely and efficiently keep panels stacked away. For others, it could mean a machinery upgrade, moving to something high-yield yet compact like the new CMS Taktika. As a last resort, it could mean moving to a larger facility with a bigger floor plan – something that comes with larger overheads, and bigger potential for growth. It all depends on your current capacity and long-term goals.
Talking to manufacturers across the country has given us a bird’s-eye perspective on happening in every state, and we’re grateful to be in this position. If you’re curious to hear how other factory owners are responding to the news, or want our take on the direction the industry is going in, give us a buzz on 1300 404 512, or reach out to Dominik or Pierre directly.