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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2016-04-13 Daily Xml
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Simulation Hub

The Hon. T.T. NGO (15:16): My question is to the Minister for Manufacturing and Innovation. Can the minister tell the chamber how the state government is assisting local businesses creating high-value products and services for export markets?

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) (15:17): I thank the honourable member for his question—it's a very good question—and his interest in these matters. Recently, the state government entered into a partnership with the global manufacturing giant Siemens and also Simulation Australasia to establish an Australian first: a cutting-edge simulation hub at Tonsley. The hub will be called SimLab.

SimLab will assist local businesses, especially small to medium-size enterprises, to create high-value products and services, and it will also help them make better connections with global supply chains and markets. Through the partnership, a suite of software products used for the design, simulation, manufacturing and support of a broad range of high-value products called Product Lifecycle Management (PLM) will be made available in Australia for the very first time.

Product Lifecycle Management integrates people, data, processes and business systems, and helps companies overcome the increasingly complex challenges of developing new products and finding global markets for them. I understand that very few of our small to medium-size enterprises have been exposed to PLM software yet, or have the skills to use it, or can afford to buy it, so this is really a very exciting opportunity for South Australia's SMEs.

With access to PLM software and training through the new simulation hub, local companies could benefit by:

improving the quality of the products they design and manufacture;

getting their products to market faster;

designing and manufacturing higher value products; and

their ability to participate in global supply chains by adopting the technologies that are used in some high-performance companies overseas.

Under a memorandum of understanding, Siemens has contributed millions of dollars' worth of advanced system simulation software to be used for training through the hub. Simulation Australasia, which is the peak industry body for simulation and modelling in Australasia, will deliver the training for local companies and universities, and the state government has contributed somewhere in the order of $250,000 to help establish the hub.

To maximise access for local companies, a number of laptops loaded with the PLM software will be located out at Tonsley. I also understand that laptops will be located at the Stretton Centre, in the Playford council region, to ensure businesses in northern Adelaide have access to the software. The use of laptops will also enable the PLM software to be taken to companies and research institutions for in-house training, should it be required.

Siemens have made a strong commitment to South Australia and are a strategic partner with South Australia in relation to the Tonsley project. This is providing the state with direct access to Siemens Global business networks and key trends from the company's perspective. Recently, the global president and CEO of Siemens PLM Software, Mr Chuck Grindstaff, visited Adelaide to deliver a public presentation on the fourth industrial revolution. He did this presentation at Tonsley. Mr Grindstaff flagged a multimillion dollar software in-kind grant should Germany be selected to build Australia's next fleet of submarines.

At the event at Tonsley, he highlighted how the establishment of a digital shipyard in Adelaide could help the state transform into a hub for high-tech manufacturing, innovative ideas, and increased employment. While he was in Adelaide, the Premier and I also had the opportunity to meet with Mr Grindstaff to discuss further opportunities for South Australia, and Siemens, with other attendees such as the CEO of Siemens and the chairman of TMS, who are the German bidders to build the next generation of Australian submarines.

The Hon. I.K. Hunter: Here in Adelaide.

The Hon. K.J. MAHER: Here in Adelaide. While industry leaders, including Siemens, suggested that the full implementation of what is known, particularly in manufacturing jurisdictions such as Germany, as the 'fourth industrial revolution' is about 15 years away, rapid progress is occurring. It is reported that the German industry will invest around €40 billion per annum by 2020 in Industry 4.0 development. The European industrial sector is expected to invest as much as €140 billion per annum, and European and US consortia have agreed to develop a joint global approach and standards.

PLM software makes up a large component of Siemens' vision for the fourth industrial revolution, and the announcement that the South Australian industry will have direct access to the software is a positive opportunity for our state. I look forward to advising the council of the productive outcomes that flow from the establishment of SimLab and commit the government to continuing to work with South Australian businesses to innovate and create new products and services that will grow our state's economy.

The PRESIDENT: That last question should have actually gone to the Hon. Ms Lee, so I will make up for that tomorrow.

Members interjecting:

The PRESIDENT: That's right—can't tell the difference. Order! They are not the sorts of words we want to have bandied around this house.

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