Mining equipment manufacturer reveals plans to phase out 265 jobs

About 265 jobs will go at Komatsu Mining's Moss Vale plant as the company phases out operations by 2030.

Southern Highlands business leaders put the potential hit to the local economy at about $20 million a year.

Federal Labor MP for Whitlam, Carol Berry, will meet Komatsu on Thursday to ask why it is closing the plant and how it plans to support workers.

The decision to close a mining plant in the NSW Southern Highlands is being described as an "absolute gut blow" for workers.

About 265 jobs will go as Komatsu winds down operations at the Moss Vale plant before the scheduled closure in 2030.

A senior organiser with the Australian Manufacturing Workers' Union (AMWU), Nathan Everson, said workers at Moss Vale had been "blindsided".

"But there were also some workers there that were keeping it together for others who are a bit distressed by the news that seemingly came out of nowhere."

In a media release, Komatsu said it planned to close Moss Vale by 2030, shifting work to Rutherford (in the NSW Hunter Valley) and Rockhampton (in Central QLD) and outsourcing some fabrication and machining to Australian suppliers.

Komatsu executive Helen Gibson said the restructure was needed to "simplify operations" and respond to changes in the Australian market and customer requirements.

"Our employees were among the first to know and, importantly, there will be no immediate changes for them," Ms Gibson said.

Union officials met with the company on site today.

"So what the company told us in the meeting today was that original equipment, so OE work, is going to be transitioning to China," Mr Everson said.

"The company had intimated that the fabrication of machining was not competitive in the market anymore and that's ultimately led to a decision to send the work offshore."

Mr Everson said the company explained the job losses would be scheduled in six phases through to 2030.

"But even the Rutherford site is not getting this unscathed," he said.

"They will also be losing some work due to this restructure."

Business Southern Highlands chair Greg Welsh said the loss of highly skilled, well-paid jobs would be felt by local shops as well as the engineering firms, hydraulics businesses and component suppliers that service the plant.

Mr Welsh estimated the region could lose about $20 million a year in household spending if the workers and their families leave the area.

Mr Everson said it was "going to be a struggle for workers to find work in the area".

He said the closure would cost NSW skilled manufacturing jobs at a time when the state government was trying to grow the sector.

NSW Domestic Manufacturing Minister Courtney Houssos said she was disappointed by Komatsu's planned Moss Vale closure, had been in touch with the AMWU, and would monitor the impact of the 265 job losses.

Federal Whitlam MP Carol Berry said she would meet Komatsu on Thursday to ask why it was closing the plant and how it planned to support workers.

State Goulburn MP Wendy Tuckerman described the closure as "deeply disappointing" and said contractors, suppliers and local businesses would feel the effects.

Wingecarribee Mayor Erin Foley said council would seek a meeting with Komatsu and press for support for workers.