It is feared hundreds of jobs will be lost north of Adelaide after one of Australia's biggest steel structure manufacturers has reportedly been taken over.
SA Structural's collapse has left several major projects in jeopardy, including the South Australian government's A $715m Gawler rail electrification project, which has been beset by delays and budget overruns.
Nearly 200 employees are understood to have been affected by the company's collapse.
SA Structural has embarked on an ambitious development programme in recent years, expanding into NSW and Victoria, completing major projects including the South Australian Institute of Health and Medical Research, the Royal Adelaide Hospital, the Osborne Shipyard, the Adelaide Oval and the redevelopment of Memorial Drive.
However, a former employee who left last year said things went sour more than 12 months ago, when the company abruptly stopped paying employees' pensions.
"They weren't going to give me a pension," said the former employee, who asked not to be named. "That was really a turning point for me. The company hasn't officially announced it yet -- it's been passed on by word of mouth."
"At the beginning of last year, people started to realise there was a problem -- the non-payment of pensions was a sign that there was a problem.
I think it was a problem that it grew too fast, that the company grew too fast without having the necessary systems in place.
It took on too many projects, too fast, and couldn't get them done."
SA Structural, founded in 2003 by Adelaide businessman Michael Mangos, supplies Structural steel for mining projects, infrastructure works, shopping centres, schools and hotels.
In 2018, the company moved to its 13,000-square-metre facility in Edinburgh, but less than two years later, it sold the property to investor Centuria for A $19.5m as part of a sale and leaseback arrangement.
Rebecca Pickering, chief executive of the Civil Contractors SA, said the firm's demise highlighted the challenges facing the state's Civil construction industry.
"A $16.7 billion in infrastructure spending over the next few years underlines the importance of the state government issuing a consistent and reliable tender to the market," she said.
The first creditors' meeting will be held at Adelaide City Hall on February 2
