The Federal Government and the state governments of South Australia and Victoria have stumped up $60 million for a manufacturing growth fund to ease the transition from car manufacturing as Holden prepares to exit the state in 2017.

The Next Generation Manufacturing Investment Programme was announced today in Adelaide by Industry Minister Ian Mcfarlane and SA’s Minister for Manufacturing Susan Close at Seeley International’s Meridian Test Laboratory in Adelaide.

Macfarlane said the programme was focussed on identifying new investment opportunities.

“Across Australia, industry is entering a new era and a third wave of development based around internationally competitive advanced manufacturing,” he said.

“This transition is particularly important in South Australia and Victoria as the car manufacturing industry winds down.

“The Next Generation Manufacturing Investment Programme will assist manufacturers to make the investments needed to reach into new global supply chains.

“Under this programme, manufacturers will have access to grants of up to $5 million to enable businesses in South Australia and Victoria, or other manufacturers looking to open new operations in these states, to purchase machinery and equipment, modify existing premises to accommodate the machinery and train staff to use and maintain this equipment.

“The programme is a central element of the $155 million Growth Fund designed to support employees, businesses and regions affected by the closure of Australia’s car manufacturing operations in 2017.

“It is a joint initiative of the Australian, Victorian and South Australian Governments.”

Minister Close said South Australia is putting up $12 million toward Next Generation.

Dr Close said the Growth Fund complements the South Australian Government’s focus on supporting industry diversification, investment and jobs growth.

“Transformation of the South Australian economy will be built on the ability of our local businesses to adopt new ways of doing things,” Dr Close said.

“We are working to help South Australian businesses to identify new opportunities for innovation and to develop and expand their capabilities.

“I hope manufacturers from a range of sectors such as food and beverage, health and medical devices and sustainable building products will consider applying for support for their investment plans.”

Victorian Minister for Manufacturing David Hodgett said that the announcement would provide great opportunities for Victorian companies.