UPPER SPENCER GULF

The Hon. G.A. KANDELAARS (14:34): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about developments in the Upper Spencer Gulf.

Leave granted.

The Hon. G.A. KANDELAARS: The Upper Spencer Gulf has been known as an area with tremendous potential for some time. Its development, based on mining and mineral related activities, has created three significant population centres at the head of Upper Spencer Gulf. Will the minister advise the house of a significant project which aims to capitalise on this potential?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (14:35): I thank the honourable member for his most important question and his ongoing interest in these matters. The South Australian government has recognised the potential of this area through a commitment of $4 million over four years to an Enterprise Zone Fund—Upper Spencer Gulf (USG) and Outback. I am very pleased to advise the chamber that the Whyalla manufacturing and fabrication company, E&A Contractors, is on track to complete a significant upgrade after a grant from the Enterprise Zone Fund.

In January this year, I announced a commitment of $2 million from this fund to assist this business take advantage of opportunities to obtain contracts to supply the mining, renewable energy and defence sectors. The company has undertaken a $7.5 million project to upgrade existing buildings, refurbish facilities and acquire heavy engineering equipment, which is expected to create approximately 100 full-time jobs over four years.

A project of this size is obviously a significant boost to the regional economy of the Upper Spencer Gulf and outback, and the company has wasted no time to upgrade its plant. These upgrades include a specialist wind tower fabrication plant, with new heavy engineering equipment, including modern profile cutting and plate rolling machines and large mobile and gantry cranes, extension of the existing buildings and yard area, and refurbishment of blast and paint facilities. The development means the company can treat surfaces of large structures of up to 180 metres long, including blasting, metallising and also painting.

I have been advised that, through this investment in the new fabrication plant, the company has been able to gain international procurement, accreditation from Siemens, the principal supplier of wind towers, as well as comparatively position the business in the region. The project has not only helped build capacity for engineering and manufacturing in one of our regional areas but also has enabled an established business to diversify its offering to the market and help position Whyalla as a manufacturing and service hub for the renewable energy industry. It is an excellent example of how we are supporting businesses to progress the state government's growing advanced manufacturing priority.

I am advised that E&A Contractors are now due to begin manufacturing wind towers by late May for Siemens, and over the next four months is committed to deliver the Siemens contract, which, once completed, will firmly establish E&A Contractors as the key supplier nationally to the wind energy sector. The USG and outback regions are well placed to capture businesses from the expansion of the resources, energy and allied service industries. The $4 million Enterprise Zone Fund is a rolling fund available over four years and is aimed at catching the benefits of growing industries to further strengthen USG and outback communities, including capitalising on opportunities that are focused on the expansion of the resource and energy sectors and providing access to organisations in the USG and outback for projects that make a major impact on the region by changing competitive advantages in its favour.

The fund is accessible by organisations, including local governments, businesses and industry associations, in the region. The fund is aimed at capturing the benefits of growing industries to further strengthen the Upper Spencer Gulf and outback communities. Renewable energy is obviously a very important part of South Australia and Australia's clean energy future, and I congratulate E&A Contractors on their expansion. This significant upgrade will not only position E&A to take advantage of current and emerging opportunities to participate competitively in the mining and defence sectors but also will establish a local company in our region as a recognised supplier to the wind energy sector nationally. Supporting this project will also help build local capacity for engineering and manufacturing in the Upper Spencer Gulf, and I look forward to seeing this extensive facility firsthand.