Manufacturing News

Fund generates $67m investment in SA

South Australia’s reputation as an innovation and manufacturing powerhouse has been boosted with the announcement that investments worth $67 million and up to 450 jobs will be generated under the first round of the South Australia Innovation and Investment Fund.

The $15.4 million in funding was announced today by Australian Innovation Minister, Senator Kim Carr, and SA Deputy Premier and Minister for Industry and Trade, Kevin Foley.

The 10 grants announced, ranging from $366,000 to $3 million, will fund projects to establish and expand local manufacturing capabilities.

Projects include:

• A complex analysis laboratory to service SA’s growing minerals industry (Labanalysis Services — 109 jobs).

• An aerospace and defence component machining facility — Aerospace Engineering SA (Broens Industries — 63 jobs).

• Production of a world-leading bolt-on turbine technology designed to dramatically reduce fuel consumption and greenhouse gas emissions in new and existing car and truck fleets (Intex Holdings — 45 jobs).

“When the Australian and SA governments announced this fund, we were very clear on its purpose: to create sustainable, full-time jobs that grow local industry,” Senator Carr said.

“Today’s announcement does exactly that, generating up to 450 jobs and $67 million in investment. This is an outstanding result that reinforces SA’s reputation as an innovation and manufacturing powerhouse.

“The Rudd Government believes there is a strong future for manufacturing in SA. We will continue to work in partnership with industry and the State Government to secure new opportunities that result in jobs and growth.”

Deputy Premier Kevin Foley said projects funded would help diversify SA’s manufacturing base and go some way in filling the gap created when Mitsubishi pulled out of local manufacturing.

“These projects exemplify the type of advanced manufacturing the State Government is keen to see flourish,” Foley said.

“As the global financial crisis deepens, grants like these couldn’t be more timely, helping quench a thirst for capital needed by firms primed for expansion.

“Support from the fund can make the difference between projects proceeding or not proceeding, and often between succeeding and not succeeding,” Foley said.

The $40 million South Australia Innovation and Investment Fund was set up by the Australian and SA governments in response to the closure of Mitsubishi’s Tonsley Park assembly plant in March last year.

It includes $10 million for intensive assistance to retrenched workers and $30 million to support industry development.

Applications for the second round of the industry development program are open and must be received by the Australian Government Department of Innovation, Industry, Science and Research by 29 May 2009.

Information on how to apply is available at www.innovation.gov.au or phone (03) 9268 7548.

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