Downer Group employs more than 250 people at its Maryborough rail facility, which has operated for more than 150-years in the regional town about 3.5 hours north of Brisbane.

A Downer spokesman said on Thursday said “no final decision” had been made about the potential redundancies.

“Our work on the Queensland Train Manufacturing Program is continuing as expected and we look forward to working with the Queensland government on potential future opportunities,” a spokesman said.

“The consultation we have commenced with our workforce specifically relates to the cessation of a contract with a private freight operator.

“We want to confirm no final decision has been made and we continue to explore opportunities to fill the gap in work in order to ease any impact on our people.”

The company signed a $4.6b deal with the Palaszczuk Government in 2023 to build 65 passenger trains for the South East Queensland rail network supporting 800 jobs in construction and manufacturing ahead of the 2032 Olympic Games.

Former premier Annastacia Palaszczuk made a commitment to Queenslanders that rail manufacturing jobs would be returned to Maryborough when the deal was announced.

Manufacturing Minister Dale Last said in parliament on Thursday he recently visited the Maryborough facility and met regularly with the construction contractor Downer.

“The jobs that are being created at the new train manufacturing facility at Torbanlea are secure,” he said.

“They will be secure for the construction of those 65 trains and ongoing under this government.”

Minister Last told parliament the government had awarded a new $120m contract to Gold Coast company ADCO to build a new rail maintenance building to maintain passenger trains built under the Queensland Train Manufacturing Program.

“ADCO will build a 20,000 sqm rail maintenance facility that will service and maintain the expanded fleet of 65 new six-car passenger trains being built in Maryborough to service the South-East Queensland rail network,” he said.

“The new contract on the Gold Coast will keep the maintenance of Queensland built trains right here in Queensland, supporting more than 100 jobs during construction and, importantly, around 140 jobs once operational.

“It will play a key role in supporting the growth and maintenance of our public transport network in the lead-up to the Brisbane 2032 Olympic and Paralympic Games.”