A year has passed since Holden’s announcement that it will cease manufacturing in Australia. After months of insecurity, the Government of South Australia has announced that it will provide financial support for auto supply diversification projects worth $1.23 million.
Quality Plastics and Tooling Pty Ltd, Numetric Manufacturing Pty Ltd and ZF Lemforder Australia Pty Ltd are the first three recipients of grants funded from the $11.65 million Automotive Supplier Diversification Program.
The Automotive Transformation Taskforce designed the Automotive Supplier Diversification Program to provide a unique package of support to firms to ensure they are provided with timely assistance based on their unique circumstances.
The program is comprised of the $7 million Automotive Supplier Capability and Competitiveness initiative and $4.65 million for Re-tooling for Diversification.
According to the news release by Automotive Transformation Minister Susan Close, Quality Plastics and Tooling Pty Ltd will get $495,000 to part fund a $990,000 project to expand its PakPot product range into food, cosmetics and other nonautomotive industries; Numetric Manufacturing Pty Ltd will get $97,250 to part fund a $214,500 project to diversify into defence industries and mining services, while ZF Lemforder Australia Pty Ltd will get $29,000 to fund a strategic review to find ways to diversify away from its 100% reliance on supplying parts to Holden.
“This important initiative provides assistance to component suppliers affected by GM’s announcement that it will cease making vehicles in Australia in 2017. Together the recipients of this funding will generate projects worth more than $1.23 million. These firms together employ 184 full-time workers. These jobs will be at risk if the firms are unable to reduce their reliance on the automotive industry,” said Dr Close.
“The State Government accepts that the only way many auto suppliers will survive into the future is to diversify away from automotive into other growth industries. These grants will assist eligible companies to successfully diversify and secure alternate revenue streams to drive sustainable growth, long-term employment and potential for exports.”