Automotive Supplier Diversification Program

The Hon. G.A. KANDELAARS (15:30): My question is to the Minister for Automotive Transformation and Minister for Manufacturing and Innovation. Can he inform the chamber about the latest grant recipients through the Automotive Supplier Diversification Program?

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (15:30): I thank the honourable member for his question and his interest in the manufacturing industry, and particularly in matters to do with the changing nature of manufacturing industries in South Australia. I am pleased to advise that the government has awarded three automotive supply chain companies over $1 million in support through the Automotive Supplier Diversification Program to help them diversify. Trident Plastics, ZF Lemforder Australia and Australloy are the latest companies to benefit from the state government's $11.65 million program.

The Automotive Supplier Diversification Program is a state government initiative to assist South Australian automotive supply chain companies impacted by the closure of Ford, Toyota and particularly Holden by the end of 2017 to diversify their business activities and secure alternative revenue streams for a more sustainable future. These three grants will assist the companies undertake important re-tooling projects.

Woodville-based Trident Plastics currently produces injection moulded plastic components for the automotive, air-conditioning and waste management industries, currently employing nearly 80 people at its western suburbs operations. The company relies heavily on the automotive manufacturing sector, with a large part of the company's annual revenue derived from that sector.

Last month, I had the opportunity to tour Trident's facility, where they produce a very wide range of plastic items. Many of us in this chamber would use a Trident product every week as we put out our garbage and recycling bins for our local government to pick up. A large part of Trident's production is producing garbage and recycling bins right across many South Australian (and indeed interstate) councils, and I commend those South Australian councils for supporting a South Australian company.

Trident will receive $500,000 to invest in new tooling to manufacture a range of new plastic products. I understand the company expects that the new product range will generate significant export opportunities, particularly in the New Zealand market.

Edinburgh Park-based business ZF Lemforder Australia was established in 2006 to supply components to Holden for its VE Commodore and currently employs approximately 110 people. The company's revenue is very heavily exposed to the automotive manufacturing sector and, for their operations to continue in South Australia, it is imperative that their business is diversified. ZF Lemforder Australia will receive $450,000 to help the company progress the development of innovative bulk goods transport solutions. I understand that this will include a side-tipping operating technology. The $450,000 grant will assist the company to fulfil phase 1 of its plan, which involves preparing plant and equipment needed for manufacturing the new product.

Wingfield-based company Australloy specialises in producing aluminium castings for the automotive manufacturing sector and currently employs 22 people at its Wingfield operation. The company is heavily exposed to the automotive sector, with around 83 per cent annual revenue coming from auto manufacturing. Recently, the company had a successful joint venture with Victorian company Harrop Engineering, which has led to an increase in the manufacture of aluminium castings and resulted in the employment of an additional eight full-time employees.

This company will receive a grant of $84,000 to assist in scaling up its pilot copper casting production facility so that it can produce larger copper castings, up to 800 kilograms each, for operational trials at Olympic Dam. Between them these companies employ in excess of 200 people, and the grants provided by the South Australian government will assist these companies in securing jobs for the future.

These latest grants take the total number of grants awarded through the program to nine and will result in over $2.2 million invested in programs that will assist companies to diversify their business activities to secure alternative revenue streams for a more sustainable future.