MEMBER for Maryborough Anne Maddern has described the closure of Maryborough's Bombardier factory as being "very sad for employees and their families".
But she said it was part of the wider problem of Australia's manufacturing industry not being able to compete with overseas businesses.
"It's a demonstration of the issues we are facing locally and across the country," Ms Maddern said.
Because of Australia's small population, its businesses couldn't compete with the scale of production of other countries.
Bombardier was attempting to find workers other employment within the company, Ms Maddern said, with one possibility being working in Ipswich, where the maintenance of trains would be carried out.
She said she wanted the local component of the contract to be carried out in Maryborough, but could see that Ipswich made sense as it was close to where the trains would run.
"Bombardier will work with staff to support them and Ipswich is an option they can explore," she said.
Ms Maddern said what it boiled down to was fierce competition from overseas companies and the tightening of government spending.
An internal document was seen by the Fraser Coast Chronicle on Monday, announcing to staff the downsizing and closure of Bombardier's Maryborough factory.
It is believed 45 employees have already lost their jobs, but a spokeswoman for Bombardier said there were currently still 55 employees working at the site until it shuts down next year.
She said the downsizing and eventual closure of the factory would be complete by the end of next year, when the factory had substantially completed its current contractual commitments.
"Bombardier continues to explore opportunities to utilise the site, and if new opportunities surface we would look to re mobilise operations there," the spokeswoman said.