Up to $71,000 is available from the Automotive Supply Chain Transition Program for automotive supply chain companies to plan for their future, including access to new sectors and markets.
Automotive Supply Chain Transition Program (ASCTP)
The Automotive Supply Chain Transition Program is a Victorian Government initiative that will provide intensive tailored support to businesses in the automotive supply chain to guide them through the transition period as major car manufacturing in Victoria ceases.
The Automotive Supply Chain Transition Program (ASCTP) is focused on retaining industry capability and jobs in Victoria that might otherwise be lost due to the announced closures of the three major car manufacturers (Ford, Holden and Toyota) in Victoria.
The Automotive Supply Chain Transition Program (ASCTP) is part of the Victorian Government’s Towards Future Industries: Victoria’s Automotive Transition Plan, which aims to:
- help businesses in the automotive parts and related supply chain industries find new markets in the global automotive industry or other industries within Australia
- provide assistance to automotive industry workers to find new jobs
- support economic development in the areas most affected by the closure of the major car manufacturers.
This will be achieved by:
- Providing intensive support to equip supply chain companies with options and strategies for transition
- Offering assistance to implement key recommendations identified in the plan.
Stages of Assistance
The Automotive Supply Chain Transition Program offers two separate stages of assistance.
1. Business Transition Plan
Independent Business Specialists will provide intensive support to participating companies, including the completion of a business diagnostic to help identify future opportunities and assistance required. The diagnostic outcomes will then form the basis of a Business Transition Plan, which will be developed by the Business Specialist and the participant.
The Business Transition Plan will identify target sectors and markets for diversification as well as the strategies and capabilities the company needs to pursue in order to transition
2. Business Transition Services and Merger Advisory Services
Business Transition Services
- At the completion of the Business Transition Plan stage, participating supply chain companies may be eligible to receive assistance towards business transition activities identified in their plan.
- The nature of support will depend on the outcomes identified in the Business Transition Plan.
- Where common needs are identified across a number of program participants, group delivery of specialist services may be appropriate and cost-effective.
Merger Advisory Services
- where a business merger has been identified in the Business Transition Plan as the appropriate course of action, support for Merger Advisory Services may be provided to maximise retention of industry capability and jobs.
- designed to provide advice on the strategies required for a business merger
- Assistance from a representative of the Department will be incorporated into all program streams, providing the supply chain company with information on existing State and Federal industry support programs.
Total support provided for any automotive supply chain company will be capped at $65,000.
Automotive Supply Chains Companies
Supply chain companies must meet all the following criteria to be eligible for assistance under the Automotive Supply Chain Transition Program:
- Have an Australian Business Number (ABN)
- Be incorporated in Victoria
- Have been trading continuously since May 2013 (when the closure of the car companies was first announced)
- Be a Victorian based business, with at least 20 per cent of revenue1 derived from new car manufacturing by the three local car manufacturers (Ford, Holden and Toyota) and their supply chain
- Have the ability to meet the minimum co-contribution requirement for the relevant transition project.
To be considered to become an Automotive Supply Chain Transition Program Business Specialist, applicants must:
- Have an Australian Business Number (ABN)
- Be registered for GST
- Be a Victorian-based business with a high level understanding of the automotive industry, and the Victorian supply chain in particular
- Demonstrate experience providing strategic analysis (including diagnostics) and planning for businesses in Victoria
- Be financially viable.
Eligible Project Activities
Activities funded under Business Transition Services includes (but is not limited to):
- new product development
- business matching
- assistance with management skills
- sales and marketing strategies
- financial management
- market access activities
Activities funded under Merger Advisory Services includes (but is not limited to):
- business valuations
- asset valuations and registers
- due diligence
- leasehold premise obligations
Applications close 30 June 2018, unless funds are fully expended prior to that date.
The Andrews Labor Government is helping Victorian automotive businesses affected by the closure of automotive manufacturing to identify new opportunities and target markets.
Meeting with workers at Composite Materials Engineering in Bayswater, Minister for Industry and Employment Wade Noonan announced $112,000 in funding to provide seven automotive supply chain companies across Melbourne with the business support they need to plan for their future.
The Labor Government’s Automotive Supply Chain Transition Program (ASCTP) was established to support businesses identify future opportunities and new markets, and highlight the capabilities needed to enter that market.
Other funding recipients to receive much needed support to develop a transition plan include:
- Venture Campbellfield Pty Ltd (Campbellfield)
- Venture DMG (Keysborough)
- Boge Elastmetall Australia Pty Ltd (Dingley)
- Roehlen Industries Pty Ltd (Mordialloc)
- Dolphin Products Pty Ltd (Heidelberg West)
- Entegro Group Pty Ltd (Brooklyn)
Eligible supply chain companies stand to receive assistance valued at $16,000 to develop a transition plan.
Businesses can then apply for funding of up to $50,000 to implement the key transition activities identified in their plan.
Funding is also available for business capability development, including assistance with management skills, sales and marketing strategies, financial management, new product development and marketing opportunities.
This program is part of the Labor Government’s $46.5 million Automotive Transition Plan to help Victorian automotive businesses transition into new markets, retrain and find sustainable jobs for automotive workers, and attract investment into communities suffering from the closure of automotive manufacturing.
Automotive supply chain companies wishing to apply for ASTCP assistance, or specialist companies seeking to deliver transition projects for the program, are urged to visit www.business.vic.gov.au/asctp or call Business Victoria on 13 22 15.