Bustech is again proving the Australian manufacturing industry is not dead with a major contract win to supply 100 low emission buses to Tasmania’s Metro network.

The deal, worth $45 million over the next four years will create 40 full-time jobs on the Apple Isle with Bustech partnering with local company Elphinstone to create at least 24 jobs.

Bustech is Australia’s only original equipment manufacturer (OEM) with each designed, engineered and built entirely on Australian shored. The company has recently applied a similar business model successfully in South Australia partnering a local component company.

The alliance secured a government grant supporting the build of environmentally friendly buses, including electric buses, for trial across Adelaide’s public transport network.

Adding to Bustech’s primary plant in Queensland, the new ventures provide a significant lift to Bustech’s annual production capacity, boosting the company’s ability to supply national and international markets.

Transit Australia Group chief executive officer Michael McGee said the Tasmania project was an exciting outcome for Australia’s manufacturing industry.

“We are delighted that the Tasmanian Government has recognised the superior build and weight reductions associated with our innovative XDI manufactured chassis,” McGee said.

“It’s also great to see them support and encourage local jobs and skills growth in advanced manufacturing.

“Adding Tasmania to the mix provides unique opportunities to further develop our strategic supply chain and leverage off existing skill sets across different companies to enhance our product offerings,” he said.

Elphinstone executive general manager Lee Whiteley said the project would strengthen the company’s position and broaden manufacturing facilities.

“The advanced manufacturing training and skills developed through the Metro project, together with our existing expertise, will be important in securing other opportunities in similar markets and sectors,” Whiteley added.

The first deliveries are expected to happen in the next 12 months.