06/03/2014 - 16:06

Industrial strip adds $14.7bn

06/03/2014 - 16:06

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Industrial strip adds $14.7bn
Kwinana industrial area.

The four major industrial precincts in Kwinana, Cockburn and Rockingham, known as the Western Trade Coast, contributed more than $14.7 billion to the state’s economy in 2013, making it the most important industrial area in the state.

The WTC comprises the Australian Marine Complex, Kwinana Industrial Area, Latitude 32 Industry Zone and Rockingham Industry Zone.

An independent study found that the WTC generated more than $14.7 billion in direct sales, employed 11,362 people, accounted for 2 per cent of Western Australia’s gross state product, and contributed 33 per cent of all value added in the state’s manufacturing sector.

WTC said the figures were slightly lower than a 2007 study by Pracsys, which found the group’s economic output was $15.5 billion and employed 11,600 people.

However, given the challenging trading times of the high Australian dollar and high labour demand in recent years, the resilience of the group was pleasing, WTC said.

 WTC industries committee chair Phil Edman said the group was one of the world’s leading industry hubs, and had been made possible by state government investment.

“The state government’s commitment to the area, demonstrated by the premier’s announcement to legislate a clear and agreed industry zone, is encouraging growth, with businesses within the WTC indicating plans to invest more than $2 billion over the next five years to improve capacity,” he said 

The study, conducted by Sinclair Knight Merz (SKM) and Resource Economics Unit (REU), also found the WTC to be the largest integrated industrial ecology in the world.

Industrial ecology refers to when one industry uses the products and/or waste by-product of another.   

WTC said the Kalundberg Eco-Industrial Estate in Denmark claimed to be a world leader in industrial ecology with 30 transactions.

However, there were 158 different customer/supplier transactions in WTC, according to the study.

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