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AUSTRALIAN bus manufacturing company GoZero Group is set to become the nation’s biggest bus maker after winning a bid to buy BusTech Group, the second-biggest bus maker, from creditors.

BusTech is a major bus-maker in diesel, hybrid and zero-emission buses and employs more than 270 people in factories in Queensland and South Australia. Last month it entered into voluntary administration.

The takeover is not expected to affect BusTech’s recent contract with the South Australian government to supply vehicle bodies – built on Scania drivetrains – under a $11.75 million contract.  

South Australian transport minister Tom Koutsantonis, speaking before the GoZero move, said on radio in Adelaide that Scania, which subcontracted BusTech for the work, did not have any concerns about meeting the contract targets.

“BusTech is continuing to operate while under voluntary administration, and existing production targets remain on track,” Mr Koutsantonis told FIVEaa radio.

“However, the responsibility for meeting contractual obligations with the state government ultimately rests with Scania.”

GoZero, which has subsidiaries including the Foton Mobility Distribution joint venture, said in a statement that after the bid had been approved, the deed of company arrangement was “expected to be finalised in the coming days, pending the satisfactory conclusion of discussions with the state governments.”GoZero managing director Stephen Cartwright said: “We need the state governments to demonstrate their ongoing support for the transaction to ensure that the workers remain employed in Adelaide and Brisbane, and to ensure that BusTech remains a local bus manufacturer for many years to come.”

He said that the acquisition substantially expands GoZero’s Australian bus manufacturing capability and that BusTech’s factories in Edinburgh, South Australia and Rocklea, Queensland would complement GoZero’s established Nexport bus factory in Western Sydney. 

Mr Cartwright said it was an important acquisition for GoZero Group. 

“Not only will it increase our opportunity to service the growing national market for low and zero-emission buses, but it will protect local manufacturing jobs in both Queensland and South Australia at a time when the employment market remains uncertain,” he said. “We are rapidly scaling up to be able to meet increasing demand from state governments, councils and the private sector, increasing our investment in factories and people ensuring we have the scale and capacity to deliver Australian-made world class buses. 

“This acquisition is a testament of great confidence in the future of the bus  manufacturing sector in Australia, and the message to all tiers of government is clear; “we support a Future Made in Australia, and we stand ready to help you reach your  strategic zero emission targets’ and provide safer, cleaner public transport for all Australians”.

Mr Cartwright said that for every bus GoZero builds in Australia, five Australian jobs were created or retained. 

“Buses are the most used mode of public transport ahead of all other modes,” he said.“In NSW alone, buses account for well over 40 per cent of all public passengers, making over 300 million journeys a year. 

“Having a strong and predictable pipeline of bus orders is the key to the sustainability of local bus manufacturing, the creation of jobs (including four-year apprenticeships) and  the renewal of the public transport fleet with low and zero emissions buses.” 

Mr Cartwright said the acquisition of BusTech would go a long way to solving the local  bus manufacturing sector’s ‘chicken and egg’ problem, where governments’ often expect manufacturers’ to have already invested in scaled capability prior to being offered new bus orders.

“GoZero Group’s manufacturing strategy is to maximise local supply chain content in buses, supplemented with select strategic collaborations with proven international suppliers,” Mr Cartwright said. 

BusTech Group was established in 1995 with its first bus completed in its factory in Ernest, Queensland. It now has factories in Rocklea, Queensland and Edinburgh, South Australia.

GoZero Group operates companies including electric bus-maker Nexport that builds buses for public, school and private charter transport; NSW’s biggest bus and coach charter company NSBC; and distributes zero-emission vehicles for public transport and electric trucks under the Foton Mobility Distribution joint venture.

By Neil Dowling

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