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$4.3m initiative to help auto suppliers enter new markets

08 May, 2014

Seven Australian automotive supply chain firms will receive a total of $4.3 million to diversify their product and customer bases through Round 3 of the Automotive New Markets Program (ANMP).

The $42 million ANMP is a joint initiative of the Federal, Victorian and South Australian governments to help automotive component producers win work in non-automotive markets domestically and internationally.

"These ANMP funded projects display the leading edge manufacturing capabilities of our local automotive supply chain firms," said Federal Minister for Industry, Ian Macfarlane.

"These grants will help automotive firms remain viable by diversifying into non-automotive markets and ensure that vital manufacturing capabilities remain in Australia."

The projects to be funded include:

  • manufacturing cycling training simulators;
  • casting metal components for the aerospace and defence industries;
  • transforming production lines to producing new packaging products for the food and medical/pharmaceutical industries; and
  • producing emergency pipe repair clamps for the oil and gas industries.

Victorian Minister for Manufacturing David Hodgett said local automotive companies have valuable skills which have been developed over many years, and these capabilities can be adapted to a wide range of industries.

"The ANMP provides the much needed support for companies to innovate and diversify their products away from the automotive industry and into new sectors," Hodgett said.

South Australian Minister for Automotive Transformation Tom Koutsantonis also pointed to the commitment SA firms are making to keep up with changes to the industry.

"These ANMP projects show that South Australian automotive firms are determined to adapt in changing times to ensure that SA continues to have an advanced manufacturing industry," Koutsantonis said.

"Our recipients are committed to maintaining their manufacturing capabilities and the ANMP provides crucial support to allow them to diversify and develop new products for new customers."

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John R WORNER | Friday, May 9, 2014, 12:52 PM
My Company PRESSFORM ENGINEERING PTY LTD has been in business for 40 years supplying car, trailer and truck parts into all industries We also have made and supplied pipe supports and clamps for all that time. Therefore I am not happy at all, that my taxes are being used to "producing emergency pipe repair clamps for the oil and gas industries", in direct competition with my business.
Ken Goldsmith | Friday, May 9, 2014, 2:23 PM
The demise of our manufacturing sector is a disaster, BUT.... Government has never been any good at picking "winners". "•manufacturing cycling training simulators" Does this mean simulators for learning how to ride a bike? If so, don't gamble any of MY tax dollars on it. FAIL. "•casting metal components for the aerospace and defence industries";As with John Worner's company, there are already firms trying to make a living this way. "•transforming production lines to producing new packaging products for the food and medical/pharmaceutical industries" Unless the idea is to recycle pre-loved materials into new packaging products, another guaranteed waste of money. "•producing emergency pipe repair clamps for the oil and gas industries." Only so many firms can co-exist in a niche market. Australia has currently no market advantage in this field, exports are most unlikely. Another waste of money. The LNP was elected to STOP WASTING OUR MONEY!