Manufacturing gets $20M boost in WA budget to support energy shift

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Image credit: nordroden/stock.adobe.com

The Western Australian Government is strengthening local manufacturing capabilities and supporting the State’s energy transition with a $20 million investment announced in the 2025-26 State Budget. 

The funding will support the development of new manufacturing infrastructure and initiatives aimed at boosting local content in energy-related projects, as stated in a news release. 

As part of its Made in WA plan, the government said it will allocate $10 million to establish a manufacturing facility in Forrestfield that will produce the poles and wires needed to deliver thousands of kilometres of transmission lines for Western Power.

The facility will be developed in consultation with established steel fabrication companies and aims to reduce reliance on overseas supply chains by producing components locally.

Premier Roger Cook said the initiative is central to the Government’s broader economic diversification agenda. “This facility is a cornerstone of my government’s commitment to a future Made in WA,” he said. 

“By ensuring we have the facilities to deliver the poles and wires needed for Western Australia’s energy transition, we are creating opportunities for local industry to scale up and provide steel components that would otherwise be sourced from overseas. This will create jobs, diversify the economy, and help decarbonise WA—ensuring our State’s economy remains the strongest in the nation.”

An additional $5 million has been committed through the Strategic Industries Fund to support planning for a major manufacturing hub in Picton. 

The hub, part of the new Advanced Manufacturing and Technology Hub (AMTECH), will serve as a regional base where Western Power will act as a foundational customer. 

These developments are intended to create jobs, support local suppliers, and produce critical infrastructure needed for the energy transition.

Treasurer Rita Saffioti said the investment builds on the Government’s track record in manufacturing. “Our government has always been a very strong supporter of local manufacturing, having returned railcar manufacturing to WA and continuing to deliver our transformational METRONET program,” she said. 

“Now, we’re building on those pillars to further boost local manufacturing as part of our job-creating Made in WA plan.”

To further increase local industry participation, the Budget also includes $10 million for a new Local Industry Development Fund. 

The fund will support Western Power in achieving the highest levels of commercially viable local content in its projects. It will also establish a government agency-led local content coordination group to ensure a unified approach to procurement across departments.

Energy, Decarbonisation and Manufacturing Minister Amber-Jade Sanderson said the initiative aligns with WA’s broader energy goals. 

“We are working with local industry to maximise the opportunities provided by the energy transition, ensuring the creation of skilled local jobs to support the expansion of manufacturing capabilities,” she said. 

“This will enable local suppliers to be engaged in long-term supply contracts—creating a pipeline of skilled jobs and delivering value for money with materials made right here in WA.”

Local representatives also welcomed the investment. Forrestfield MLA Stephen Price said the manufacturing facility would provide long-term benefits for the local area. 

“The manufacturing facility will deliver great benefits for Forrestfield, creating local jobs and increased economic activity,” he said. “This facility could lead to other businesses being established in Forrestfield.”

South West Minister and Bunbury MLA Don Punch echoed the sentiment, highlighting the regional opportunities the new hub will create. “Making this election commitment a reality brings our Made in WA agenda right into the heart of our South West,” he said. 

“This is the beginning of an exciting new era for Bunbury and the region that will unlock our manufacturing potential and provide skilled jobs of the future.”