A $30 million manufacturing innovation centre will be based in a Canberra office block, dashing hopes it could have found a home in Wollongong.
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Unveiled during Tuesday’s budget, the Manufacturing Technology Innovation Centre was billed as evidence of the Gillard government’s commitment to the struggling sector.
The $29.8 million project will allow researchers and firms to collaborate to devise new techniques and products.
It is the latest addition to Enterprise Connect’s national network of ‘‘innovation centres’’.
The announcement triggered speculation Wollongong could be a possible location, given the region's manufacturing roots.
However, a spokesman for Industry and Innovation Minister Greg Combet yesterday confirmed the centre would be based ‘‘within existing infrastructure’’ in Canberra’s CBD.
It will also have a presence in existing offices in six other capital cities.
Wollongong was snubbed despite other Enterprise Connect innovation centres being based in Newcastle, Dandenong, Mackay and Alice Springs.
Australian Industry Group Illawarra regional manager Leanne Grogan said North Wollongong’s Innovation Campus would have been a logical choice.
‘‘Well let’s be honest, Wollongong is a centre for manufacturing and Canberra is not,’’ she said. ‘‘What we would like to see is on what basis has that decision been made.’’
A University of Wollongong spokesman confirmed the university was investigating if it could have housed the project. The $20 million Clean Energy Innovation Centre opened in Newcastle in 2009, in conjunction with the University of Newcastle’s commercial arm, Newcastle Innovation.
Mr Combet’s spokesman would not be drawn on why Wollongong was not considered for the new centre.
‘‘[The centre] will create a network of leading edge researchers and industry experts around the country who will be available to collaborate with manufacturing businesses,’’ Mr Combet’s statement said.
‘‘This collaboration will give our manufacturing businesses the opportunity to harness new technologies, business processes and technical knowledge, to improve their productivity.
‘‘This will better equip businesses to compete effectively in the global manufacturing environment and help them realise new market opportunities, particularly in the Asian market.’’
About $3.9 million will be spent on the $29.8 million centre during the coming financial year.
Another $6.5 million will be spent the year after that, followed by $9.4 million in 2014-15 and $10 million in 2015-16.