A Brisbane-based manufacturer will bring plastic film manufacturing onshore from Asia through a multi-million-dollar investment.
The supplier and manufacturer of packaging and industrial supplies, Signet, expects to reduce the financial and environmental costs of shipping product from overseas to customers in Australia.
The company reassessed its polyethylene manufacturing operations in the wake of the falling Australian dollar, and looks forward to seeing the creation of more jobs in Brisbane through the investment.
CEO Jack Winson said a $2 million Italian-made Macchi machine would allow the company to increase its production capacity from 1700 to 5000 tonnes of product a year for the packaging and agricultural industries.
The polyethylene blown film extruder can produce plastic bags, wrapping, and a range of agricultural films to support primary producers.
Winson said Australian businesses were often enticed by offshore manufacturers with promises of lower product costs on the back of lower labour costs.
“In our analysis, labour is a fraction of the cost for the type of specialised product we're making, and has to be balanced against the additional costs and time involved in manufacturing offshore,” he said.
“Manufacturing here in Brisbane means we have control, ensuring a consistently high-quality product that meets our clients’ needs, and the flexibility to ensure we can meet the most challenging deadlines.
“Our local operations also mean we can give clients surety over their budget estimates, because we don't have to account for the unpredictable and fluctuating Australian dollar.”
Signet has been a local Queensland manufacturer for nearly 50 years, producing inks and aerosol paints, signs, labels, and plastic films which compete with competitors' imports.
“We’ve seen many industries, and competitors, engage in ‘manufacturing tourism’ in pursuit of lower costs, but we believe when considering all factors, including costs, Australian manufacturing can stack up,” Winson said.
The new machinery is in the final stages of commissioning and testing, and Signet intends to ramp up production in coming weeks.
