BP scraps GAB exploration project BP has decided not to proceed with its exploration drilling programme in the Great Australian Bight (GAB), offshore South Australia. Image credit: www.bp.com Claire Fitzpatrick, BP’s managing director for exploration and production, Australia, said that after careful consideration the company concluded that the GAB project “will not be able to compete for capital investment” with other upstream opportunities in its global portfolio in the foreseeable future. “We have looked long and hard at our exploration plans for the Great Australian Bight but, in the current external environment, we will only pursue frontier exploration opportunities if they are competitive and aligned to our strategic goals,” Mr Fitzpatrick said. “After extensive and careful consideration, this has proven not to be the case for our project to explore in the Bight.” The decision comes after BP conducted a thorough review of its upstream strategy earlier this year, which found that the company would be better off to focus its exploration efforts on opportunities likely to create value in the near to medium term, primarily building on its significant existing upstream positions. “This decision isn’t a result of a change in our view of the prospectivity of the region, nor of the ongoing regulatory process run by the independent regulator NOPSEMA. It is an outcome of our strategy and the relative competitiveness of this project in our portfolio,” Mr Fitzpatrick added. He said BP has already communicated its decision to the federal and state governments. “This decision has been incredibly difficult and we acknowledge it will be felt across the South Australia region. We have made significant progress with preparations for drilling in the Bight with the support of communities and federal, state and local governments,” he said. “We acknowledge our commitments and obligations and our priority now is to work with government and community stakeholders to identify alternative ways of honouring these.” BP has also informed its joint venture partner, Statoil that it will not be proceeding with exploration drilling, adding that the company “fully understand BP’s change in strategic direction and accept BP’s decision”. “BP is a long-term, significant investor in Australia, most visibly through our retail network and refinery and also as partners in the North West Shelf and Browse ventures,” Mr Fitzpatrick continued. ”We expect to continue to consider further opportunities to invest and grow our business here.” Australian Manufacturing

TerraCom to build 60Mw solar power station at Blair Athol coal mine TerraCom Limited has unveiled plans to construct a 60Mw solar power station on rehabilitated land at the Blair Athol coal mine which has historically produced a high quality thermal coal for over 100 years. Image credit: http://ift.tt/yftkXj by dan The company, which recently acquired the mine via its wholly owned subsidiary Orion Mining, is planning to construct the station on a 50 hectare site while bringing the mine back into production. The mine is expected to restart operations in the 4th quarter 2016 with a production capacity of 2Mtpa of coal. Terra Com Chairman Cameron McRae said the Quantum Group from Singapore will work with GHD in Queensland to initially plan the solar power system. “TerraCom is keen to play a role in helping the Government deliver on its renewable energy targets. Blair Athol is well placed to achieve this due to its close proximity to the electricity grid,” Mr McRae noted. “The Quantum Group are industry leaders in alternative energy generations and we are very pleased to announce that Queensland energy expert Mr John O’Brien shall lead the planning from GHD.” The Company is now awaiting Queensland Government approvals for the Blair Athol lease to be transferred from the current owners. Mr McRae said rehabilitation and mining operations will commence as soon as permission is granted. “The introduction of a Solar Power Station constructed on rehabilitated mine land will provide a long term future for Blair Athol as a solar hub which will mean Blair Athol will be again helping to power Queensland’s growth.” Australian Manufacturing

Austal Australia named finalist for the 2016 WA Industry and Export Awards The Export Council of Australia and West Australian Minister for Commerce, Michael Mischin have named Austal Australia as finalist for the 2016 WA Industry and Export Awards, recognising the company’s strong export success in the past year. Image credit: www.austal.comRNOV Al Mubshir (S11), the first High Speed Support Vessel (HSSV) designed and constructed by Austal Australia for the Royal Navy of Oman The company has been named a finalist in 3 separate Export Award categories, including the Manufacturing Exports Award, the Innovation Excellence Award and the Marketing and Design Award. Austal Chief Executive Officer David Singleton said the announcement was a well-deserved acknowledgement of Austal Australia’s continuing export success which saw the company deliver 5 new vessels from the West Australian shipyard over 2015/16, including 3 exports. “Over 75% of Austal’s global production is for export markets and our Australian shipyard continues to generate valuable new business that is creating jobs, developing skills and growing Australia’s sovereign shipbuilding capability,” Mr Singleton remarked. The news comes just days after Austal’s successful delivery of the RNOV Al Naasir (S12) – the second of two 72 metre High Speed Support Vessels (HSSV’s) built for the Royal Navy of Oman under a US$124.9 million design, construct and integrated logistics support contract. Australian Manufacturing

Lithium Australia begins pilot testing for continuous production of lithium carbonate Lithium Australia NL (LIT) has commenced piloting for continuous production of lithium carbonate under the second stage of its new test program at the Sileach pilot plant. Image credit: lithium-au.comium The Sydney plant is operated by ANSTO Minerals – a division of the Australian Nuclear Science and Technology Organisation. “The step-up to “continuous” lithium carbonate production commenced in the past 24 hours and followed the initial pilot scale extraction of lithium from pegmatite ore sourced from Lepidolite Hill located 15km south of Coolgardie in Western Australia,” LIT told the ASX on Tuesday. According to the Company’s Managing Director, Mr Adrian Griffin, the second stage of pilot testing involves the recovery of lithium carbonate and potassium salts from solutions generated during the previous plant test. “Pilot testing the Company’s 100% owned Sileach process at the ANSTO Minerals has been very successful to date, extracting over 95% of the lithium,” Mr Griffin remarked. “We anticipate very good results for the carbonate production step as the initial solutions are largely devoid of impurities.” The Sileach™ process is a hydrometallurgical process used for the recovery of lithium from spodumene, currently the primary source of hard-rock lithium production. The process is readily adaptable to other silicate minerals and has been developed to reduce cost of producing lithium chemicals from materials that have traditionally been roasted, with very high energy cost, to recover the lithium. Lithium Australia is a dedicated developer of disruptive lithium extraction technologies and has strategic alliances with a number of companies, potentially providing access to a diversified lithium mineral inventory. Australian Manufacturing

Construction begins on $400m lithium processing facility in Kwinana Construction has begun on a new lithium processing plant in Kwinana with a processing capacity of 24,000 tonnes per year of lithium hydroxide. Image credit: http://ift.tt/2dCSCuC The plant, a $400 million investment from China’s Tianqi Lithium, will source ore from the Greenbushes mine in southwestern Australia – jointly owned by Tianqi and Albemarle Corp – and will increase the company’s processing capacity by as much as 50%. WA Premier Colin Barnett said the project was “a major development for Western Australia”, that will boost the local economy and create hundreds of jobs during the construction phase. “More than 115 employees will be needed once the project becomes operational toward the end of 2018,” Mr Barnett added. “The project will also generate benefits for the South-West of the State, with production likely to double at the Greenbushes mine, near Bunbury, to supply the Kwinana plant.” State Development Minister Bill Marmion said the Liberal National Government has helped secure the investment for WA by working alongside Tianqi’s Australian subsidiary, Talison Lithium, which operates the Greenbushes mine. “A concerted effort was made to ensure a suitable site and cross-government approvals were secured, in order for a timely investment decision to be made,” Mr Marmion said. “This is an important manufacturing project which adds value to natural resources development in Western Australia and increases our capacity to produce higher value products.” Lands Minister Terry Redman said the Chinese company had recently finalised a lease with LandCorp for up to 49 years, over a 20-hectare site within the Western Trade Coast. “The proximity to vital infrastructure and support services and the port and skilled labour provided by the Western Trade Coast, were significant factors in the State’s success in attracting this project,” Mr Redman said. Australian Manufacturing

GE set to acquire LM Wind Power GE has launched a $1.65 billion offer to acquire LM Wind Power, a Denmark-based manufacturer and supplier of rotor blades to the wind industry, in an effort to capture more value in the fast growing renewables industry. Image: http://twitter.com/generalelectric LM is one of the biggest manufacturers of wind turbine blades in the world, and a supplier not only to GE’s renewables business, but to rivals Gamesa and Goldwind as well. Jérôme Pécresse, President and CEO of GE Renewable Energy said the deal in-sources wind turbine blade design and manufacturing for GE’s Renewable Energy business, improving its ability to increase energy output and create value for onshore and offshore customers. ”We, along with LM Wind Power, have a deep pipeline of technical innovations that can further reduce the cost of electricity. With our combined global footprint, we can build flexible solutions for customers around the world. This combination will help sustain growth in the wind power industry,” Mr Pécresse said. “The acquisition of LM Wind Power, a leading supplier to the wind industry, will help us deliver on that goal. Simply stated, we’ll be more local, have more flexibility and knowledge in turbine design and supply, and more ability to innovate and reduce product costs, while improving turbine performance. We will also develop enhanced digital and services capabilities.” Marc de Jong, CEO of LM Wind Power, said the deal will combine the speed and focus of LM’s entrepreneurial culture with GE’s world-class engineering and operational capabilities. “Our two organisations are highly complementary and the transaction positions us well to respond faster to customer needs and enhance performance of wind turbines to ultimately reduce the cost of energy,” he said. “We look forward to working closely with the GE Renewable Energy team to accelerate our growth strategy and continue to deliver greater value to all our customers.” LM, which will continue to operate as a standalone unit within GE Renewable Energy once the transaction is completed, has 13 factories located on four continents in 8 countries including Denmark, Spain, Poland, Canada, USA, India, China and Brazil. The company will also retain its existing management team and be headquartered in Denmark, where it maintains a global technology centre. “LM Wind Power has a terrific team, with a strong passion for their mission to power a cleaner world. Their values of customer-focus, teamwork, trust, and ownership are harmonious with our own values. I’m very optimistic that together we will help shape the future of energy,” Mr Pécresse concluded. The transaction – subject to customary regulatory and governmental approvals – is expected to close in the first half of 2017. Australian Manufacturing

Iveco to distribute International Trucks in Australia CNH Industrial and Navistar Inc yesterday released a joint statement, confirming that Iveco has been appointed sole distributor of International Trucks in the Australian market. Image credit: www.iveco.com.au The announcement put to rest speculation about the future distributor of International Trucks, after initial plans were outlined by Navistar Inc. at the 2015 Brisbane Truck Show. While the specifics of the agreement are yet to be ironed out, it is clear that International trucks brand will now return to the location where thousands of international commercial vehicles were produced or assembled from 1952-2001. CNH Industrial Executive Managing Director for Australia and New Zealand, Ray Osgood, said he was “extremely pleased” to have finally struck a deal with Navistar Inc. for the distribution rights after 18 months of negotiations. “International has an incredible heritage in Australia, dominating the commercial vehicle market for several decades – there remains a lot of passion for the brand here today, and it still has a lot of equity in this market,” Mr Osgood said. “CNH Industrial is extremely excited at the prospect of partnering with Navistar in reintroducing the iconic International Trucks brand to Australia. Our operational experience within Iveco and the obvious synergies and history between the two brands will provide notable efficiencies as the International range is introduced in the months ahead.” Navistar Senior Vice President, Distribution & Export, Mark Belisle, said the company carefully considered the best course of action for the return of International Trucks to Australia. “Despite not having sold here for a number of years, ‘INTER’ is still entrenched in the psyche of the Australian market and remembered fondly by fleet operators. This enthusiasm for the marque was also highlighted at the 2015 Brisbane Truck Show with both the ProStar and LoneStar display trucks capturing the imagination of show-goers,” Mr Belisle said. “Of course the return of a brand to Australia that is so well regarded, deserved a detailed plan befitting of its standing here, and that meant establishing an association with a company that was well equipped to assist in effectively re-launching in the local market. In Iveco we’ve identified the necessary credentials and industry experience to help meet our goals. The close history between Iveco and International is not lost on us either; it adds an element of emotion to the agreement.” Australian Manufacturing

Toyota calls back 300 Prius vehicles in Australia Toyota Australia is recalling approximately 300 current generation Prius vehicles manufactured between August 2015 and October 2016 due to “potential issue with the parking brake cable”. Image credit: www.toyota.com “The impacted vehicles are equipped with a manual parking brake system that is operated by a foot pedal. When the foot pedal is operated, a connecting cable applies the rear brakes,” the company said in a statement. “There is a possibility that during normal operation of the vehicle, the parking brake cable may disengage, causing the parking brake to become ineffective. If this happens and the transmission is left in any gear other than ‘park’ while the ignition is on, the vehicle could roll away. To rectify this condition, parking brake cable clips will be installed on all impacted vehicles.” Toyota Australia said the parts are expected to arrive at dealerships later this month, after which impacted owners will receive a letter to inform them to make an appointment at their preferred Toyota dealer. According to the company, the repair, which will take approximately 30 minutes, will be carried out free of charge. Australian Manufacturing

ASC to be split into three Government-owned companies The Federal Government has announced that it will split Adelaide-based shipbuilder ASC into three individual, Government-owned companies. Image credit: www.asc.com.aus According to the statement, the formal separation of ASC into shipbuilding, submarine sustainment and infrastructure companies will ensure optimal support for the future needs of Australia’s future shipbuilding capability. The move follows a strategic review of ASC, which sought to identify the best possible corporate, capital and governance arrangements to help maximise the future success of ASC and the Australian naval shipbuilding industry. The Department of Defence Ministers said the procedure to split ASC into three new companies will begin immediately and will be completed next year. “These changes will have no impact on ASC employees’ current terms and conditions and will provide the right structure for the growth of the workforce as a result of major infrastructure investment and the construction of Offshore Patrol Vessels, Future Frigates and Future Submarines,” reads the statement. The Management of ASC has welcomed the announcement, saying the company had effectively been operating separate submarine and shipbuilding businesses for the last two years. “This operating model has enabled each business to focus its attention and allocate resources to deliver on their programs and pursue opportunities for future work. It has been a major contributing factor in the company’s turnaround in the Collins Class submarine and Hobart Class air warfare destroyer programs,” said ASC Chairman Bruce Carter. He said the separation will have no bearing on ASC’s involvement in its current programs. “The separation of ASC into three businesses will ensure that the company is best- placed to support the future needs of Australia’s naval industry,” Mr Carter added. “The last two years has seen a remarkable turnaround in Collins Class submarine availability and the Hobart Class air warfare destroyer program is now meeting its schedule milestones and we expect our improved productivity to continue.” Australian Manufacturing

Glencore restarts Collinsville Coal Mine, begins recruitment process Glencore is set to recommence operations at its Collinsville Coal Mine near Bowen in a move that is expected to provide employment for up to 200 Queenslanders. Image credit: www.glencore.com.au The company, which already kickstarted a recruitment process to fill the positions, said the decision was influenced by increased demand from South-East Asia for the specific type of coal produced by Collinsville. “Our Collinsville mine has made material progress in increasing operational efficiencies and reducing costs in the current market and the decision to return to production is positive news for the local community and the wider region,” said Tony Galvin, head of Glencore’s open cut coal business in Queensland. Glencore cut production in December 2015 due to declining thermal coal prices. Subsequently, the company reduced the 230-strong workforce by 180, 140 of whom were redeployed to other Glencore operations. “This year there has been a focus on rehabilitation work and management of mine water,” the company said in a press release. “We have also continued to support a number of community initiatives, including the funding of a revitalisation master plan that aims to increase tourism in Collinsville and surrounding areas.” Premier Annastacia Palaszczuk has welcomed the announcement that one of Queensland’s oldest coal mines at Collinsville is restarting production and hiring again. “This is yet another piece of positive news for the north and ongoing evidence of green shoots appearing in the resources sector,” the Premier stated. “It’s been encouraging to see these green shoots appearing over the past few months showing in both global prices and within the industry itself in Queensland.” Australian Manufacturing

Bosch Australia showcases highly automated driving (HAD) capabilities at ITS World Congress in Melbourne Bosch Australia has demonstrated and road tested its Australian engineered automated vehicle at the Intelligent Transport Systems (ITS) World Congress, which is being held in Melbourne this week. Image credit: www.bosch.com.au The company’s vehicle was driven on a closed Albert Park circuit on Sunday during the ITS World Congress Media Day, with demonstration to continue over the duration of the Congress. The vehicle has the ability to communicate with other vehicles and to automatically act on behalf of the driver based on projected danger such as road-works, sudden changes in traffic conditions and unexpected obstacles. Bosch will also demonstrate connectivity between its vehicle and a Ducati motorcycle at Albert Park, a feat that could prove key to protecting vulnerable road users such as motorcyclists. According to the company, the vehicle also includes advanced human machine interface (HMI) technology that can adjust vehicle settings and monitor for driver distractions. Bosch Australia’s automated driving program has been supported with a $1.2 million investment by the Victorian Government via the Transport Accident Commission (TAC). Bosch Australia President Gavin Smith, who is speaking as keynote at the ITS World Congress, said the advancement of highly automated driving will significantly reduce the number of accidents on the roads while also delivering a myriad of other benefits. “More than 90 per cent of all crashes are caused by human error, by increasing automation in vehicles, we can have a profound impact,” Mr Smith said. The information gathered from the trials will be used to inform the development of regulations and infrastructure to enable similar self-driving cars to operate on Australian roads when they become commercially available in the future. “Projects such as these are not just vital for the advancement of road safety but also for the further development of technical expertise and capability of Bosch Australia engineers,” Mr Smith added. “More than 45 Bosch Australia engineers worked on the car in the last year and we are extremely proud of what they have achieved.” As of 2017, cars will be fitted with systems such as “integrated highway assist,” which allows a car to travel at speed on the highway, while remaining in its lane. “In 2018, this will be augmented with a “highway assist” system that allows the car to change lanes by itself. Both systems still require a human driver to monitor the road,” Bosch Australia said in a press release. According to the company, by 2020 cars will be equipped with a “highway pilot” that can essentially take over all driving tasks, with only a sporadic human intervention needed at times. By 2025, Bosch expects all vehicles to be fitted with “auto pilot” system that can drive a car from point A to point B without any human involvement. “Although we cannot say precisely when the tipping point for highly automated driving will be, we are certain the future of mobility will be connected, electrified and automated,” Mr Smith concluded. Australian Manufacturing

Samsung discontinues Galaxy Note7 production Numerous reports have emerged that Samsung has decided to end production of the Galaxy Note7, just hours after asking retailers to stop sales and exchanges of the smartphone. Image credit: http://ift.tt/2e7rxft “We remain committed to working diligently with appropriate regulatory authorities to take all necessary steps to resolve the situation,” the company in a statement, before deciding to discontinue production altogether. “Consumers with either an original Galaxy Note7 or replacement Galaxy Note7 device should power down and stop using the device and take advantage of the remedies available.” The move comes after the company received dozens of reports of batteries catching fire and exploding, and after it failed to rectify the problem with the issue of replacement phones, which also malfunctioned. The Galaxy Note7 was intended to be Samsung’s flagship smartphone, one that would dethrone Apple’s iPhone as the best smartphone on the market. Samsung has yet to make an announcement regarding its plans with existing Galaxy Note7 phones that are in use and how it intends to deal with customers with pending orders. Australian Manufacturing

Australia Pacific LNG announces start of operations from second train Australia Pacific LNG has announced the start of production from the second train at its Curtis Island facility near Gladstone. Image credit: www.aplng.com.au The company, which began LNG production from its first train in December 2015, confirmed that it had produced 150,000 cubic metres of LNG, equivalent to the volume required to fill an LNG ship Australia Pacific LNG CEO, Page Maxson, said the start of operations from the second train marks the final major construction milestone on the company’s journey to becoming one of Australia’s leading domestic and international energy supplier. “The second train is up and running, enabling our LNG Facility on Curtis Island to deliver commercial quantities of LNG at sustained output from both trains. With our strong reserves position we are looking forward to working with our key customers here in Australia and overseas to help meet their energy needs today and in the decades ahead,” Mr Maxson said. “As the largest producer of natural gas in eastern Australia, we are underpinned by a world-class coal seam gas resources position. We currently provide approximately 25 per cent of domestic gas to the east coast market, with sufficient reserves to meet both LNG and domestic demand.” The commencement of train two operations means that approximately 200TJ/day of equity gas that was previously directed to the QGC sales contract will become available to Australia. Minister for Resources and Northern Australia Matt Canavan has welcomed the announcement, saying it was an important boost to Australia’s export capacity. “It will also deliver a sustained and reliable energy source to domestic and key international markets like Japan and China,” the Minister added. “As the third Queensland LNG project to begin production from a second train, the $25 billion APLNG project demonstrates the extent to which the Australian resources sector underpins the national economy and drives growth.” APPEA Chief Executive Dr Malcolm Roberts has also congratulated Australia Pacific LNG and its employees and on “delivering a first class world project professionally and safely”. “Six trains are now fully operational on Curtis Island off Gladstone following unprecedented investment in world-first projects that are exporting a cleaner energy source to the world,” Mr Roberts noted. “They form part of a bigger $200 billion investment in new LNG projects which will soon see Australia become the world’s leading exporter of LNG.” Australian Manufacturing

Queensland cuts red tape to progress Adani mine project The Queensland state government has set out to accelerate the development of the $21.7 billion Carmichael coal and rail project by renewing and expanding the project’s special “prescribed project” status to include its water infrastructure. Image credit: http://ift.tt/2d3ez5i State Development Minister Dr Anthony Lynham said the combined mine, rail and associated water infrastructure have all been declared critical infrastructure – the first time this has happened in seven years. He said the declaration, which was based on advice from the independent Coordinator-General, means less red tape for the project and the jobs and business opportunities it offered. “This step bundles together major elements of the project for the first time – the mine, the 389 kilometre rail line, and the water infrastructure, including a pipeline, pumping stations and a dam upgrade,” the Minister explained. “It makes it more efficient to establish easements for infrastructure like the water pipeline and the rail, and expands the Coordinator-General’s power to ensure timely approvals.” He said the Palaszczuk Government has gone to great lengths to accelerate the development of the project, as illustrated by the 22 key Commonwealth, State and local government approvals granted for Adani’s mine, rail and port facilities. “Adani has now obtained all the necessary primary approvals for its mine, rail and port project— and most importantly, I have granted the mining leases,” the Minister added. “At a state level, the only key approvals remaining are water licenses and Adani is actively working on those with my Department of Natural Resources and Mines. I know that regional communities particularly will welcome the advice from Adani that construction of the project is set to begin in 2017.” He also pointed out that the progress on the project had been achieved while protecting the Great Barrier Reef and meeting Queensland and Commonwealth environmental impact assessment requirements. Australian Manufacturing

South Australia to invest 10m in driverless car technology The South Australian state government will fork out $10 million worth of grants in an effort to boost testing and R&D of connected and autonomous vehicle technologies in the state. Image credit: www.arrb.com.au The initiative was launched by Transport and Infrastructure Minister Stephen Mullighan at the 23rd World Congress on Intelligent Transport Systems (ITS), which opened in Melbourne on Monday. Making the announcement, Mr Mullighan said the Government will invite companies, industry bodies, research institutions and other organisations to submit creative proposals focusing on autonomous vehicle testing and demonstrations, as well as on connected vehicle-to-vehicle and vehicle-to-infrastructure pilots and demonstrations. “Connected and autonomous vehicles can deliver huge benefits to South Australia – they have the capacity to reduce congestion, save lives and help people get around our community with more freedom,” the Minister said. “We need to know more about what changes are needed to our roads and our laws so that this technology can improve safety on the roads, improve mobility for people with disabilities and reduce congestion and emissions.” He said the initiative is inviting creative proposals that will accelerate the roll-out of these technologies on the state’s roads and open up new opportunities for South Australian businesses and its economy. “We already have world leading companies in this field. Cohda Wireless, SAGE Automation and Sydac are all based in South Australia and are some of our most impressive success stories,” the Minister added. “Transforming the South Australian economy depends on our ability to adopt new ways of doing things, using advanced technologies to build globally competitive, high-value firms and sustainable, well-paid jobs. It is estimated that the driverless vehicle industry will be worth $90 billion globally by 2030. Getting our State involved early will open up new opportunities for South Australian businesses and our economy.” The initiative builds on SA’s previous achievements in this field, which saw the state stage the first on-road trials in the Southern Hemisphere and host the first international driverless car conference in Australia. SA also introduced Australian-first legislation to allow for on-road trials of autonomous vehicles. According to Mr Mullighan, the state government will only fund experiments conducted within the state, with overseas-based partners encouraged to participate by partnering with local SA small to medium enterprises, universities and other organisations. Australian Manufacturing

Austal to deliver mid-life remediation program to the Royal Australian Navy’s ACPB fleet Austal Australia has been awarded a contract to deliver a mid-life remediation program for the Royal Australian Navy’s Armidale Class Patrol Boat (ACPB) fleet. Image credit: Austal The ACPB is a 56 metre all-aluminium monohull patrol boat. Austal is the original designer and builder of the Armidale Class; the company delivered 14 ACPBs from 2005 to 2007. According to the official announcement, starting this month, the company will undertake a number of hull remediation and configuration changes as well as planned and corrective maintenance work on up to seven (7) ACPB’s at its Henderson, Western Australia shipyard. “As the original designer and builder of the Armidale Class, Austal is in an ideal position to deliver this important, mid-life enhancement work to a proven naval platform. Our inherent knowledge base and practical experience building and servicing the hard working Armidale fleet will ensure the vessels depart Austal in 2017 as a fully operational and effective capability,” said Austal Chief Executive Officer David Singleton. “This order is indeed timely for Austal and ensures that key skills in naval shipbuilding and repair are maintained in Henderson during the lead up to the placement of the Offshore Patrol Vessel contract. Once again, by winning this competitively bid contract, we have demonstrated that Australian shipbuilding can be internationally competitive.” Australian Manufacturing

Volkswagen to replace conventional freighters with LNG-powered vessels for marine transport of vehicles The Volkswagen Group has decided the use environmentally friendly transportation for its vehicles in an effort to improve the environmental balance of its marine transport fleet. Image credit: www.volkswagenag.com As of 2019, the Group will transport its vehicles with two LNG-powered Siem Car Carriers vessels on routes between Europe and North America. Additionally, the carmaker also revealed that it intends to transfer vehicle and material transport in Europe increasingly from trucks to lower-emission means of transport such as ships in the future. “The Volkswagen Group is shouldering its responsibility for the environment. This not only applies to our cars but also to our production and logistics. We are pooling all our efforts to improve environmental compatibility in Logistics under the term Green Logistics,” said Wolfram Thomas, Head of Group Production. “By commissioning the two LNG-powered freighters for the route between Europe and North America, Volkswagen Group Logistics is forging ahead with environmentally compatible, resource-efficient transport.“ The two LNG-powered vessels have a capacity to carry about 4,500 vehicles, which is comparable to conventional transatlantic freighters. Both ships will be equipped with a 12,600 kW engine developed by MAN Diesel & Turbo. Thomas Zernechel, Head of Group Logistics, said the move will reduce emissions per ship and year by up to 25% in the case of CO2, up to 30% in the case of NOx, and up to 60% in the case of particulate matters (PM). SOx emissions will be cut by as much as 100%. According to him, the use of a dual-fuel marine engine with direct injection and exhaust gas treatment will also help reduce emissions. “Compared with other means of transport, marine shipping is one of the most efficient possibilities. Volkswagen Group Logistics already transports half of the vehicles produced by sea. We are continuously working on the optimization of our marine transport systems. The chartered vessels on which a decision has already been taken are the first milestone.” Mr Zernechel added. “The possibility of changing other vehicle transport vessels chartered by Volkswagen over to LNG operation will depend on the availability of the necessary infrastructure. Apart from LNG as an alternative fuel, we are also working on other projects which will continuously make our logistics processes more environmentally compatible.” Australian Manufacturing

End of an era: Ford shuts down Broadmeadows and Geelong plants The last Aussie-made Ford vehicle has rolled off the production line in Broadmeadows on Friday, signaling the beginning of the end of carmaking in Australia. Image credit: Ford Australia Facebook page Ford has officially closed its factories in Geelong and Broadmeadows after 91 years of manufacturing, leaving a total of 600 employees out of work. The Premier of Victoria, Mr Daniel Andrews, labeled Ford’s deprture as “a very sad and difficult day for workers”, many of whom have spent their entire working lives at Ford. “Our thoughts are with them, their families and the many others in Ford’s supply chain who will also be affected by the closure,” Mr Andrews said. “Labor Governments have always supported automotive manufacturing in Victoria and we are doing all we can to help workers, businesses, and communities through this very difficult period.” He said it was “absolutely paramount” that all levels of government work together to help workers and businesses during the difficult transition. “The Andrews Labor Government is providing $46.5 million of targeted assistance, including programs and training for auto workers, businesses and local communities hardest hit,” the Premier added. “The experience of Ford employees will provide a valuable benchmark for all other workers such as those at Holden, Toyota and supply chain companies as they make a similar transition.” Despite pulling the plug on all manufacturing operations, Ford will remain present in the country through its Asia-Pacific Product Development Centre which will be located at its Broadmeadows headquarters. “Ford will continue to employ approximately 1,500 people in Victoria and will retain its Asia-Pacific Product Development Centre and parts warehouse at Broadmeadows, its Research and Development Centre at Geelong, and its proving ground at Lara,” Mr Andrews concluded. Australian Manufacturing

Holden ends Cruze production in Australia Australia’s last locally-built Holden Cruze rolled off the assembly line at the Elizabeth assembly plant in South Australia, as Holden winds down its operation ahead of its announced closure next year. Image credit: media.gm.com The company’s Chairman and Managing Director Mark Bernhard thanked Holden’s employees for their contribution towards designing and launching building Australia’s locally-made small car. “Those who were involved in the Cruze project have a strong, and deserved, sense of pride at what was achieved in terms of project development, management, engineering, design and, of course, production,” Mr Bernard said. “Holden’s business is changing and we are building a bright future, but it is equally important to recognise and honour our people and our heritage. We’re incredibly proud of our manufacturing history and our legacy; I want to thank every Holden employee, and all those people in the supply chain, for their personal contribution to our industry and our company.0 Holden has donated the final Cruze hatch and final sedan to its long-time charity partner, the Leukaemia Foundation, which will raffle the cars to fundraise for patient transport services and The end of Cruze production marks the end of employment for around 270 Holden employees, who will leave the business by the end of November on a voluntary basis. Holden said each employee has been given “access to a suite of transition services” and up to $3000 in approved training as part of the company’s $15 million contribution to the government’s Growth Fund which was established to assist those affected by the end of local car manufacturing. Holden will continue to build the world-class Commodore at Elizabeth until late 2017, after which it will shut down all manufacturing operations but will retain its sales and marketing operations, spare parts organisation, world-class design studios and an ongoing engineering department. Australian Manufacturing

ACCC releases statement of issues on competing proposals for Glencore’s coal haulage network The Australian Competition and Consumer Commission (ACCC) announced that it will be seeking public submission on the proposals from Aurizon and Pacific National to acquire Glencore’s GRail coal haulage network in the Hunter Valley. Image credit: accc.gov.au The two proposals came after Glencore announced that it is putting up its coal haulage business for sale as part of its debt reduction plan. The ACCC has released a combined statement of issues on the alternative proposals in an effort to assess the proposals against the alternative scenario of a new player entering the market by acquiring GRail. “The Hunter Valley coal haulage market appears to have high barriers to entry, so we would expect the addition of a third competitor to have a significant effect upon the market. This has been supported by market feedback. In contrast, an acquisition by Aurizon or Pacific National would essentially be a continuation of the status quo where there are two active players in the Hunter Valley coal haulage market,” ACCC Chairman Rod Sims said. “Aurizon and Pacific National were both sponsored into each other’s coal haulage markets in Queensland and New South Wales and there has been little or no new entry before or since. There are some examples of coal producers acquiring their own rolling stock, but Glencore Coal is the only Hunter Valley coal producer to have done so for a majority of its coal haulage requirements.” The consumer watchdog invited responses to the statement by 21 October 2016, setting a provisional date for a final decision on 15 December 2016. “Glencore is now selling that rolling stock along with a long-term haulage contract. Coupled with the fact that Glencore Coal is the largest coal producer in the Hunter Valley, this is a platform for entry that is unlikely to be replicated in the foreseeable future,” Mr Sims added. “However, the ACCC also recognises that coal producers are generally well-resourced, sophisticated parties that may be able to protect their own interests, even if Aurizon or Pacific National acquires GRail. We are going to be exploring their ability to leverage competition between Aurizon and Pacific National or to bypass both haulage providers by acquiring their own rolling stock or by sponsoring new entry.” Australian Manufacturing