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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2015-11-18 Daily Xml
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Automotive Transformation

The Hon. T.T. NGO (15:11): My question is to the Minister for Automotive Transformation. Will the minister update the house on how the automotive supply chain companies are diversifying in South Australia?

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (15:12): I thank the honourable member for his question and his interest in automotive stuff, as well as the Hon. John Gazzola's very strong interest in muscle cars. Members would be aware that, in response to the announced closure of Holden at the end of 2017, the state government established a flexible $11.65 million automotive supply diversification program to assist companies heavily reliant on automotive manufacturing. I have talked about some of the successful grants from that program previously, but recently I had the opportunity to announce a $500,000 grant through the program to assist a northern Adelaide automotive component maker, Blown Plastics, to diversify.

Blown Plastics currently employs around 73 people at its Elizabeth South site, and since 1990 has developed its core capacity of plastic blown injection moulding. The company has built its business to be a tier 1 supplier to Holden, producing ducting and wheelhouse liners. I understand that automotive manufacturing currently accounts for a large proportion of its revenue.

The company, under the strong leadership of Simon Morton, the Director of Business and his team have taken a proactive approach to securing new revenue streams to ensure that Blown Plastics has a future post the end of Holden's manufacturing at the end of 2017. The $500,000 grant under the state government's program will enable the company to purchase state-of-the-art moulding equipment to enter the growing medical devices market, making various medical components.

This will support the existing diversification activity being undertaken by the company, which has included pursuing opportunities in food manufacturing through the production of plastic bottles for the domestic market. From speaking with the company when I visited them recently, they are filling a space in the market for product that food producers would otherwise typically need to source from interstate or overseas.

I understand these diversification activities will not only secure the jobs of the people currently working there but also provide very good opportunities for employment growth at Blown Plastics in the future. I congratulate Simon and his team for the committed approach they are taking to ensure Blown Plastics diversifies its manufacturing.

I am pleased to say that this is the 10th grant provided through this scheme and takes the total number of companies supported to eight. Other recent recipients include Trident Plastics at Woodville, Australloy at Wingfield and ZF Lemforder at Edinburgh Park, who have all received grants. The Automotive Supplier Diversification Program will continue to be delivered and, as I have outlined to the chamber previously, if we need to change any of the parameters for the program, we will continue to do so.

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