Reliance Worldwide Corporation has announced plans to close its brass casting, forging, and machining operations at facilities in Moorabbin and Braeside, Melbourne, as well as additional smaller sites, with the goal of achieving an annual operating earnings uplift of approximately US$9 million by the end of FY27. The closures reflect a sustained decline in brass production volumes at the Melbourne facilities, which management describes as no longer economically viable to continue.
The reduction in Australian brass volumes stems from strategic shifts across RWC’s global footprint. Investment in the company’s Alabama facility has enabled automation of SharkBite Max brass push-to-connect fittings production, bringing manufacturing closer to North American end markets and substantially reducing volumes sourced from Australia. Additionally, the company transitioned in 2025 from manufacturing brass SharkBite components in Melbourne for the APAC region to sourcing from third-party vendors in Asia. Looking ahead, RWC anticipates further declines in overall brass requirements as it progresses a broader strategy to replace brass with stainless steel across key product ranges.
The financial impact consists of a one-off net charge of US$100 million to US$110 million in FY26, which will be excluded from operating earnings. This charge breaks down into provisions for redundancies and property exit costs of approximately US$5 million, a net write-down of tangible assets including inventory of approximately US$25 million, and impairment of intangible assets and goodwill of US$70 million to US$80 million. The company expects approximately US$5 million in net cash outcome, with the remainder non-cash. From FY27 onward, the APAC region will experience an adverse operating earnings impact of US$9 million as intercompany revenue declines substantially from the approximately US$38 million recorded in FY25. These impacts are expected to be offset by lower costs in the Americas region, which should see a net annual benefit of US$18 million.
For investors, this announcement reflects RWC’s broader strategic repositioning to optimize its manufacturing footprint and supply chain economics. The closure eliminates uneconomic operations while supporting the company’s product innovation strategy of transitioning away from brass. The expected net annual EBITDA benefit of US$9 million across the group, combined with improved tariff exposure under the revised supply chain, positions the company for improved profitability. However, the substantial one-off charge in FY26 will impact reported earnings for the current financial year, and the APAC region’s structural earnings decline warrants attention to the company’s regional performance trajectory.
Approximately 85 employees are expected to be affected by the closures, with RWC having commenced consultation with impacted staff anticipated to be completed during July 2026. Key items for investors to monitor include the precise timing and magnitude of the transition to alternative supply sources, the company’s progress in replacing brass with stainless steel across product ranges, and the actual realization of the projected US$9 million annual earnings uplift. This announcement has been classified as price sensitive and is flagged as material by the ASX.
View the full ASX announcement (PDF)
About Reliance Worldwide Corporation Limited (ASX: RWC)
Reliance Worldwide Corporation Limited designs and manufactures branded plumbing and heating products for global markets, specializing in water flow, control, and monitoring solutions. The company produces brass fittings, push-to-connect fitting systems, pipes, tubing, and plumbing valves sold under brands including JG Speedfit, HoldRite, and SharkBite. It operates manufacturing and distribution facilities across North America, Europe, and Asia-Pacific regions.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
