The federal government is investing more than $33 million to address supply chain risks for specific items.
The move aims to strengthen Australia’s supply chains, including backing Australia’s only local manufacturing site for critical intravenous (IV) medical fluids.
Under Round One of the Supply Chain Resilience Initiative (SCRI), 27 projects will share in funding, with Round Two now open for applications. The SCRI is a key part of the $1.5 billion Modern Manufacturing Strategy created to strengthen supply chain resilience.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said these grants will improve Australia’s access to critical products – medicines and agricultural production chemicals – including in times of crisis.
“The COVID-19 pandemic has shown us the importance of resilient supply chains and manufacturing capability within Australia – especially for critical products,” Minister Taylor said.
“Whether it be to ensure we have life-saving medicines, or that our farmers have the agricultural production chemicals they need to keep producing food for Australians, we want to secure our capabilities to make what we need.
“That is why the Government is investing in projects to support manufacturing of these critical products – as well as in the areas of semiconductors and water treatment chemicals under Round Two.
“These projects, with the Government’s support, will grow Australian manufacturing, build capability and support, and create crucial jobs in Australia.”
Successful companies under Round One will receive matched grants of between $50k and $2 million across medicines and agricultural production chemicals – which were identified as sectors of focus in the Sovereign Manufacturing Capability Plan.
Baxter Healthcare will receive up to $2 million in Round One funding to support the production of more than 50 million units of life-saving IV medicines used in ICUs, emergency rooms, operating rooms, and oncology wards across the country.
Strike Energy will also receive up to $2 million to build a large-scale facility that will use natural gas and green hydrogen to produce urea for agricultural fertiliser, replacing imports and creating jobs in Western Australia.
Round Two is now open
The Round Two funds, which are now open for applications, will cover eligible projects in the areas of semiconductors and water treatment chemicals.
This support builds on existing engagement with the telecommunications sector to ensure resilience in critical operations in that sector.
To be eligible the applicant must:
- have an Australian Business Number (ABN)
- be non-income tax-exempt
- be registered for the Goods and Services Tax (GST)
- be an entity incorporated in Australia and a trading corporation.
For a project to be eligible, the application must show:
- a minimum of $100,000 in eligible project expenditure
- that it’s a manufacturing business or a business within the manufacturing supply chain
- that the project addresses supply chain vulnerabilities associated with critical product categories
- that the applicant can complete the project and meet the costs of the project not covered by grant funding
For more details on the successful projects and for Round two guidelines, visit https://business.gov.au/grants-and-programs/supply-chain-resilience-ini…