PARTS supplier Dana Australia has shrugged off the apparent doom and gloom in the Australian automotive manufacturing industry by starting construction of a new headquarters, factory and distribution complex in the Melbourne suburb of Keysborough.

While its car driveline factory that supplies Ford Australia at Campbellfield is set to close with the loss of some jobs when Falcon and Territory production shuts this year, Dana’s heavy vehicle component assembly operation that supplies the big four Australian truck manufacturers – Kenworth, Mack, Volvo and Iveco – as well as the aftermarket, is full steam ahead.

Company executives and local politicians this week turned the first sod on the Keysborough site where all Dana functions will be combined in one 10,000 square metre facility.

Currently based at Hallam, south-east of Melbourne, Dana Australia expects to relocate to the new building in November this year.

The company currently employs 130 people in Victoria, although some of the 30 people employed at its Campbellfield car driveline operation are expected to be made redundant. Others will be offered a transfer to the new Keysborough operation.

The manufacturing side of Dana Australia – currently also based at Hallam – revolves around assembling Spicer driveline modules for heavy vehicles from parts imported from Dana factories overseas. The operation is supported by a local design and engineering team.

As well, a vast array of aftermarket motor vehicle and industrial components, ranging from head gaskets to four-wheel drive gear sets, are also imported and distributed by Dana Australia, which is a wholly owned subsidiary of 112-year-old Dana Holding Company of the United States – a $US6.1 billion ($A8b) conglomerate.

Dana Australia managing director Peter Langworthy said that like many Australian businesses, Dana had been faced with managing the fallout created by the end of local passenger car manufacturing.

“With this announcement, Dana is very pleased to confirm its ongoing commitment to manufacturing in Australia,” he said.

Mr Langworthy said Dana had invested almost $1.5 million in Australia in the past 12 months, and would invest a further $700,000 by the time the new building opened.

“We believe this project will deliver many benefits and greater efficiencies such as combining design, engineering and manufacturing,” he said.

The new five-star-rated green facility – at the junction of the Eastlink toll road and Greens Rd – is being built for Dana by property developer Frasers Property Australia.

The development is a shot in the arm for the Victorian economy that is preparing to bear much of the brunt of the passenger car manufacturing shut down.

By Ron Hammerton