Ford's co-contribution subsidises defence contract

Ford's $3 million present to the people of Geelong is the gift that keeps on giving. The local manufacturer chipped in the money -- along with $21 million provided by the Victorian and Federal governments -- to promote and support business development in the Geelong region. Ford set up the fund with backing from the state and federal governments, following the company's original announcement it would close the Falcon engine plant in the Victorian regional city (more here).

Named the Geelong Investment and Innovation Fund, the fund has yielded a $1.8 million grant to Chemring Australia, a company tasked with supplying 'countermeasures and pyrotechnics' for the Australian Defence Forces (ADF).

Chemring Australia, the Australian subsidiary of British concern Chemring Group PLC, is based in Lara, just outside of Geelong. The grant provided by the Geelong Investment and Innovation Fund allows the local subsidiary to fill 40 new positions, which will, in turn, deliver an $18 million boost for the local (Geelong) economy during the current global crisis. In a press release issued yesterday by the Minister for Innovation, Industry, Science and Research -- Kim Carr (pictured) -- the ADF contract was said to be worth $160 million.

The creation of the 40 new jobs has provided the local subsidiary with the necessary production and R&D resource to secure the job for delivering finished products to the ADF, rather than the work going to other Chemring facilities around the world. As a consequence, a larger part of the $160 million slated to go overseas will remain in Australia.

In addition to the existing contract, Chemring is seeking support opportunities presented by the RAAF's procurement of the JSF (Joint Strike Fighter) aircraft -- and the funding will assist the company in achieving this end. Consequently, the company is expected to expand its staff numbers from the Geelong hinterland.

According to Ford's Manager, Public Affairs, Sinead McAlary, the car company continues to back the Geelong Investment and Innovation Fund, despite announcing that the engine plant would remain in operation beyond 2010 (more here).

"We were quite integral in setting up the whole investment fund in the first place," she told the Carsales Network.

"There was never any suggestion that we would [forego being involved in the investment fund], even when we decided to keep the engine plant open."

To date, according to Senator Carr's press release, the fund has created 193 sustainable full-time jobs, worth a $27.2 million fillip for Geelong. Three rounds of funding are being disbursed by the fund, extended to businesses that can mount a case in favour of funding. Currently, the governments are assessing the second-round applications, with an announcement due early next year. Second-round funding will total $24 million.

To comment on this article click here