Automotive Transformation

The Hon. T.T. NGO (14:42): My question is to the Minister for Automotive Transformation. Can the minister tell the chamber about how the government is assisting the automotive supply chain companies to take advantage of new market opportunities?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (14:42): I thank the honourable member for his question. I think this might be the third sensible question we have had in this chamber today, Mr President, which is fantastic. The government is delivering a comprehensive package of initiatives to assist the automotive industry as it transitions to new market opportunities.

In particular, the government's Automotive Supplier Diversification Program is supporting a number of companies to diversify and secure alternative revenue streams to ensure a sustainable future for these companies to secure key industry capabilities in South Australia and to secure the employment future of the many skilled workers that are exposed to the impact of the winding down of automotive manufacturing in this state and, indeed, in this country.

I had the opportunity today to visit the latest company to be provided with a grant from this program: Sonnex Engineering in Elizabeth South. Sonnex is a South Australian family-owned business that specialises in the design, fabrication and manufacturing of high-quality materials handling equipment, safety guards, platforms, ladders and stairways, manufacturing aids and other unique requirements, predominantly from steel.

At the time of the announcement of Holden's closure, the automotive industry equated to around 80 per cent of the company's turnover. Through the Automotive Supplier Diversification Program, the government has provided a grant of $417,500 to support Sonnex to diversify and reposition its business to take advantage of upcoming projects in global markets.

Sonnex is a great example of a South Australian automotive supply chain company taking on the challenge of repositioning to do what they can to ensure that their company has a viable future. The funding from this grant will be provided to assist the company in three core areas: business coaching and mentoring, the implementation of international certification ISO 9001 and the establishment of leading-edge laser cutting and robotic handling equipment, which I saw this afternoon.

As the company progresses to expand its exposure into defence related contracts, this global certification is essential and will be a core requirement for many of these contracts. Investing in this new technology will vastly improve the company's production capacity and capability, reducing the production cycle and increasing employment opportunities through the business, both here and interstate. In fact, the company told me they have taken on several new workers in the last couple of weeks, and even a new person today, in response to the extra work that they will be getting from the new equipment.

Today, the company's exposure to the auto industry is now somewhere around 10 per cent. This grant is expected to help protect the jobs of employees who are already at the company and pave the way for more employment through the awarding of new contracts in a diverse range of areas. I am pleased that the Automotive Supplier Diversification Program has already supported 14 companies to diversify, and I look forward to informing the chamber of the ongoing success of the program, particularly the success of Sonnex, as the company repositions to take advantage of new economic opportunities.