Today marks a significant day for Tasmania’s advanced manufacturing sector with five businesses to share in $1 million Government funding, creating 61 new jobs.
The Caterpillar Transition Taskforce established the Advanced Manufacturing Transition Fund in July to fast-track job creating projects and ensure that the sector had a strong future following CAT’s decision to relocate to Thailand.
The fund is part of $3 million allocated for the recommendations of the CAT Transition Taskforce, which we established to support the workers, their families, the industry and the region.
Today, I am pleased to announce that five Tasmanian businesses will share in $1.05 million, which will leverage a further $1.44 million in private investment.
This $2.49 million total co-investment is projected to create 61 new jobs, and will have an immediate flow-on effect on suppliers. For every dollar invested in advanced manufacturing another four is spent down the supply chain, one of the highest multiplier impacts of any sector.
This investment has also resulted in new, innovative products that will increase Tasmania’s reputation in advance manufacturing and change the way many do business, including:
· Specialised Vehicle Solutions, $591,000 to develop a carrier for service vehicles operating at underground hard rock mines. It will be low profile, narrow and cost competitive. The company currently employs 14.5 full time equivalent staff, and projects this investment will create 35 additional jobs.
· Highco, $285,320 for the design and construction of a manufacturing plant to produce an innovative, cost saving, protective commercial food contact product. This will eliminate punctures in perishable food packaging and has the potential to revolutionise the future of Tasmania’s fresh food export market. The company will almost double its workforce, increasing from 10 staff to 19.
· Island Block and Paving, $60,000 for a brick machine manufacturing plant, which incorporates waste glass product. This will help to win back the local market for Tasmanian-made bricks. They already employ 25 staff, and expect the new plant will create an extra six jobs.
· Definium Technologies, $16,014 to upgrade the company’s advanced electronics manufacturing facility. Six full time jobs are expected to be created, in addition to their existing 3.3 full time equivalent positions.
· Tas-Fab, $98,500 to introduce a storage solution to reduce product handling, improve delivery performance and free-up current storage areas for production and development of products. The company expects to create an additional five jobs, on top of the existing workforce of 26 employees.
The five projects highlight what Tasmania’s advanced manufacturing industry is capable of and that’s the creation of new innovations, increased market share and future opportunities for expansion.
It’s great to see what we are already achieving in the first round, and it’s exciting to think what is ahead of us with almost another $1 million available in the second round.
Applications for round two can be submitted now, and closes on Friday February 26, 2016.
The Transition Taskforce will consider other ideas and projects as we continue to meet next year.