Syntec, Australia’s largest diamond tool maker, will relocate its Chinese manufacturing operations over the next few months, operating at a former Berri juice factory in South Australia’s Riverland.
ABC Riverland reports that Syntec’s managing director, Dennis Clift, cited the advantages of producing their cutting tools in Australia, which the company had been able to consider after being awarded $1,416,750 in SA government funding last year.
"We started in Australia, our hands were forced somewhat to compete in the international market particularly in the US with low-cost products coming out of Australia,” Clift told the ABC.
"There's this idea that everything in China is cheaper but if people really delved in and looked a lot closer, looked at doing things differently there are a lot more advantages in Australia than people realise, and that's worldwide not just in China.”
Clift said that there could be an “I don’t care factor”, as well as waste and a lack of pride when work was performed in China. Syntec has been offshoring for the last seven years, and will relocate factory manager Judee Mortel from Jiangyin to Berri to oversee the site.
The Riverland factory was formerly occupied by National Foods to make Berri products, but closed two years.ago, with 64 jobs lost.
The Riverland Sustainable Futures funding was announced by SA minister for regional development Gail Gago on December 17 last year.