The Adelaide-based New Castalloy, a fully owned subsidiary of Harley-Davidson which produces heel, hubs and other bike components, will close down.
Harley-Davidson has announced the doors will be shut in just over a year, with about 120 jobs to be lost.
The announcement comes after the North Plympton business was given a lifeline in 2013 after the SA government – which owns the site – offered Harley-Davidson a rent sweetener.
Harley-Davidson also announced a few days ago that it would be closing its assembly plant in Kansas City.
The SA Minister for Manufacturing and Innovation Kyam Maher was quoted as saying by the ABC: "The State Government had provided rent relief to New Castalloy in the past and had made New Castalloy last year formally aware that we were committed to continuing that so there's nothing the state government could have done further… to help New Castalloy stay open.”
New Castalloy specialises in the supply and manufacture of aluminium components in a fully finished state to major OEM and parts and accessories manufacturers.
In an unrelated matter, the New Castalloy factory site will searched in the next few days for remains of the Beaumont children, who disappeared from an Adelaide beach on Australia Day in 1966.
The site was formerly owned by Adelaide businessman Harry Phipps, who died in 2004 but is still considered a person of interest in the case.