New Research Centre to Deliver Jobs and Exports

22 Dec 11

Victorian caravan and motor home components manufacturer AL-KO Pty Ltd has announced plans to develop a multi-million dollar research and development and manufacturing facility at its Dandenong South headquarters.

Manufacturing, Exports and Trade Minister Richard Dalla-Riva said the company's decision to significantly expand its Melbourne operations represented a vote of confidence for the future of Victoria manufacturing.

"The development of this new Recreational Vehicle Technology Centre is enabling AL-KO to create 18 extra jobs and generate $2.4 million in additional exports over five years," Mr Dalla-Riva said.

AL-KO has earned a reputation for quality and innovation, developing leading-edge products for the caravan and motor home manufacturing industries, including Electronic Sway Control (ESC) and an advanced motor home chassis.

AL-KO holds patents for the ESC worldwide and it is estimated the system could be installed in up to 270,000 new vehicles globally, as well as millions of used caravans and motor homes.

The ESC and other AL-KO products will be manufactured at the new Recreational Vehicle Technology Centre, which will also play a key role in developing and testing new products and systems.

Mr Dalla-Riva said the Victorian Coalition Government was supporting AL-KO to develop the new facility with a $150,000 grant from the Business Assistance Program.

"The Coalition Government is pleased to be supporting a Victorian company that is successfully competing globally by operating better and smarter," Mr Dalla-Riva said.

Mr Dalla-Riva today also announced the government's support for the development of an industry plan for the future growth of the recreational vehicle sector.

The government will provide $45,000 to the Caravan Trade and Industries Association of Victoria (CTIAV) to conduct a review of the local industry and develop a detailed five-year plan for growth.

Earlier this week, Mr Dalla-Riva launched the Coalition's manufacturing industry strategy that will assist Victorian manufacturers to be dynamic, innovative and world-class in performance and productivity.

"This strategy will strengthen Victoria's manufacturing industry to create more opportunities for businesses to grow and become more productive and competitive in a tough global market," Mr Dalla-Riva said.

Victoria's manufacturing sector is the state's single largest full-time employer. The sector employs around 295,000 Victorians and generates around $15.3 billion per annum in export sales.