Ford Australia production plants sold

Ford Australia has revealed that the buyer of the company's former vehicle and powertrain assembly plants is none other than the Pelligra Group, a construction and property development business.

In a press release issued today, Ford advised that Pelligra was selected to acquire the production plants in Geelong and Broadmeadows due to the company's "appreciation for the significance of the sites' histories to the local communities".

The Geelong engine production plant is to be renamed 'FORTEK Geelong' and the vehicle assembly plant in Broadmeadows is to be renamed 'ASSEMBLY Broadmeadows'.

Ford will continue to run product development out of Broadmeadows, Geelong and the You Yangs Proving Ground at Lara. Those three sites employ 1600 of the company's workforce in Australia – over 2000 staff. In 2019 Ford Australia plans to spend at least $500 million on R&D.

“Ford’s Geelong and Broadmeadows sites have played a central role in the history of Australia’s auto industry as centres of technical excellence, and have been part of the fabric of the local communities for generations,” said Kay Hart, Ford Australia CEO.

“We are pleased that Pelligra Group will build on Ford’s ongoing engineering and design presence by adding new opportunities for innovation, ideas and business in Geelong and Broadmeadows,” Hart was quoted as saying in a press release.

Most of the sites acquired by Pelligra will be subdivided, and the property developer has committed $500 million for the first stage of its project to reinvent the sites as technology and business hubs in each respective community. According to the new owner, the project will generate 2000 new jobs across the two locations.

“Pelligra has a strong track record of projects that deliver jobs and rejuvenate communities,” said Ross Pelligra, Chairman of Pelligra Group.

“Our intention with FORTEK Geelong and ASSEMBLY Broadmeadows is the same; we are committed to ultimately delivering 4,000-5,000 jobs in the next 5-10 years, with the first manufacturing tenants anticipated to start work on site within a year.”

Ross Pelligra acknowledges the historical importance of the two sites his family-owned company has purchased.

“FORTEK Geelong and ASSEMBLY Broadmeadows are significant historical manufacturing sites. Through our investment in the area, we intend to help rejuvenate and grow the local community, and create industry leading hubs with world class innovation, engineering, and manufacturing on site.”

The combined area purchased from Ford is 100 hectares, which includes 265,000m² of factory floor. Pelligra plans to refit the buildings to accommodate new manufacturing and technology businesses. The first tenants are expected to move in within 12 months.

It's not the property developer's first time repurposing a former automotive production plant. The company – now in its third generation of family ownership –has also leased floor space to tenants at the former Holden manufacturing facility at Elizabeth in South Australia.