Ten Australian automotive suppliers have shared $6.5 million worth of grants in the first round of funding of the Federal, South Australian and Victorian governments’ $30 million Automotive New Markets Program (ANMP).
The ANMP, announced in August as part of the broader $35 million Automotive New Markets Initiative, is designed to help local automotive component makers develop new business opportunities both domestically and overseas, winning work in global supply chains and developing new domestic markets beyond the automotive sector.
Victorian duo Australian Arrow and Chassis Brakes International were each awarded the maximum $1 million under the scheme, with the remaining $4.5 million split between six Victorian and two South Australia suppliers.
The funding will be directed towards a range of automotive and non-automotive projects, including the development and production of braking components for Asia, next-generation photovoltaic solar plants designed for remote regions of Australia, and new technologies for the production of complex parts for the aerospace, defence and mining sectors.
Victorian minister for manufacturing, exports and trade Richard Dalla-Riva said the grants would enable Australia’s automotive suppliers to build their commercial base while maintaining their capacity to service existing customers.
South Australian minister for manufacturing, innovation and trade Tom Koutsantonis stressed his belief that the automotive industry is fundamentally important to the future of Australia’s manufacturing sector.
“Assisting component makers to diversify and scale up will ensure South Australia continues to have an advanced and innovative manufacturing industry well into the future,” Koutsantonis said.
“The initial round of applications made under the $30 million four-year ANMP has demonstrated that there is a determination in our automotive industry to diversify operations and the strength to make it happen.”
The funding announcement comes just two weeks after Ford and Holden banded together to underwrite the circa-$6.5 million debt of embattled parts supplier Autodom Limited to rescue it from bankruptcy and ensure its doors remained open.