Elphinstone’s executive general manager Lee Whiteley, Tasmanian transport minister Rene Hidding and Transit Australia Group chairman Luke Gray

Bustech secures $45m deal to build 100 Metro buses in Tasmania

Elphinstone’s executive general manager Lee Whiteley, Tasmanian transport minister Rene Hidding and Transit Australia Group chairman Luke Gray
Elphinstone’s executive general manager Lee Whiteley, Tasmanian transport minister Rene Hidding and Transit Australia Group chairman Luke Gray

Transit Australia Group’s manufacturing arm Bustech has this week made history securing a contract to build 100 low emission buses for Tasmania’s Metro network.

The $45 million project marks the single biggest investment in public transport in Tasmania’s history. It is also the first time any state or national government in Australia has procured buses that are entirely made in Australia.

Bustech is Australia’s only original equipment manufacturer (OEM) with each bus built using chassis designed, engineered and made in-house.

The Metro contract will see Bustech partner with Tasmanian company Elphinstone Pty Ltd on the state’s North-West Coast to utilise existing capabilities while providing a boost to local manufacturing.

The four-year project is expected to create 40 new full-time jobs in Tasmania, including at least 24 jobs at Elphinstone and additional jobs throughout the local supply chain.

It is a similar formula Bustech applied successfully in South Australia, after forming a strategic partnership with Adelaide company Precision Components. The alliance secured a government grant supporting the build of environmentally friendly buses, including electric buses, for trial across Adelaide’s public transport network.

The initiative has already resulted in a further 50 buses ordered, helping to transition decades of advanced manufacturing expertise away from the South Australia’s declining automotive industry.

Adding to Bustech’s primary plant in Queensland, the new ventures provide a significant lift to Bustech’s annual production capacity, boosting the company’s ability to supply national and international markets.

Transit Australia Group chief executive officer Michael McGee said the Tasmania project was an exciting outcome for Australia’s manufacturing industry.

“We are delighted that the Tasmanian Government has recognised the superior build and weight reductions associated with our innovative XDI manufactured chassis,” Mr McGee says.

“It’s also great to see them support and encourage local jobs and skills growth in advanced manufacturing.”

Elphinstone executive general manager Lee Whiteley said the project would strengthen the company’s position and broaden manufacturing facilities.

“The advanced manufacturing training and skills developed through the Metro project, together with our existing expertise, will be important in securing other opportunities in similar markets and sectors,” Mr Whiteley says.

Mr McGee said the new ventures marked exciting new territory for Transit Australia Group.

“In 2015 we successfully launched Australia’s first electric bus,” he says.

“In Adelaide we are developing advanced manufacturing capabilities to produce next generation, environmentally friendly diesel and electric buses for the Australian market.

“Adding Tasmania to the mix provides unique opportunities to further develop our strategic supply chain and leverage off existing skill sets across different companies to enhance our product offerings.”

The first wave of new buses in the Metro fleet will be completed in the next 12 months.


Bustech drives expansion inter-state

courier-mail-bustechA $2 million South Australian Government grant has kick-started a new advanced manufacturing alliance spearheaded by Queensland’s Bustech to deliver the nation’s next generation urban transport vehicles.

Bustech, the manufacturing arm of mass transit specialist Transit Australia Group, last year attracted international attention with the successful launch of Australia’s first electric bus. The company is Australia’s only OEM bus manufacturer, with chassis designed and made domestically. The new agreement will see Bustech continue to charter fresh territory for Australia’s manufacturing industry.

Leveraging existing facilities and engineering capability in Adelaide’s northern suburbs, Bustech has struck a strategic alliance with Adelaide-based Precision Components, sparking the transition of decades of advanced manufacturing expertise and jobs away from South Australia’s automotive industry.

Boosting South Australia’s economic plan to generate additional jobs and new opportunities for local suppliers to diversify, the $2 million grant will see the manufacture of four environmentally friendly buses including two advanced diesel buses and two electric buses.

Once built, the State Government will use the buses to trial how electric and low carbon emission buses might be used as part of Adelaide’s main public transport network.

Transit Australia Group CEO Michael McGee says the South Australian Government’s interest in advanced manufacturing and e-mobility solutions for public transport is inspiring.

“The Adelaide facility is the result of companies collaborating to deliver market-leading products and a government keen to support the manufacture and trial of next generation urban transport vehicles,” Mr McGee says.

“It’s the first step in a long-running partnership with Precision Components and the South Australian Government to create an advanced manufacturing alliance focussed on e-mobility, transport and energy infrastructure in northern Adelaide.”

Mr McGee said it was an example of how governments could attract investment and promote industry.

“We are creating 100 new jobs over the next 18 months and an additional 12 buses are already set for manufacture in Adelaide starting early next year. It’s a great example of how pro-business governments can attract investment and generate jobs.”

“With Bustech buses being completely Australian designed, engineered and made from the ground up, it’s great to keep the skills and labour onshore while delivering the nation’s growing requirements for transport products.”

Mr McGee says the Adelaide alliance has also strengthened Transit Australia Group’s position internationally.

“Adelaide enhances our production capacity for domestic supply and provides genuine export opportunities with our business ventures in New Zealand, Asia and the Middle East.”


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