Nissan Australia parts factory to stay "well beyond 2020"

In an unusual twist, there is some good news for automotive manufacturing workers in Melbourne today, with their jobs secure into the next decade.

Nissan Australia has shocked the automotive manufacturing industry by confirming the future of its casting and parts factory is secure "well beyond 2020".

The fresh hope for the facility in Dandenong South was announced today after Nissan Australia secured a deal to continue manufacturing parts for the Nissan Leaf electric car and 38 other models sold internationally.

Manufacturing is far from dead in Australia and we're proof of this

"Manufacturing is far from dead in Australia and we're proof of this," said Peter Jones, the managing director of Nissan Casting Australia.

"Amid the turmoil that's been reported about our country's manufacturing sector, especially in the local automotive industry, Nissan's been working away in the background."

The Nissan factory has been running around the clock, three shifts, seven days a week for the past six months, such is the demand for its parts.

It exports components to Japan, the US, the UK, Thailand, Mexico and South Korea.

About 160 people are employed there and Nissan says it expects to recruit more workers to keep up with parts supply.

Nissan Australia makes components for a range of vehicles including the Leaf electric car, Navara pick-up, X-Trail SUV and others, and each component has a small kangaroo stamped onto it.

The Nissan factory has also secured a deal to produce parts for a top secret future car

Nissan says it has been working with the CSIRO to develop a unique manufacturing technique that saves up to $100,000 per component.

"With the CSIRO, we developed … a casting technology that eliminates valve blockages caused by the molten aluminium. It avoids machine stoppages and can save us up to $100,000 a year in the production of a single component," said Mr Jones.

The Nissan factory has also secured a deal to produce parts for a top secret future car.

"This new business includes driveline components for soon-to- be-released models, new motor technology and all-new propulsion systems not yet announced, so I'm afraid I can't share any details with you. (But) these developments will see Nissan Casting Australia operating well beyond 2020," said Mr Jones.

Former industry minister, Senator Kim Carr, who oversaw the Federal Government funding of the automotive industry, said: "This is a huge vote of confidence from a major international investor in Australia's automotive skills and capabilities".

Senator Carr said the Nissan example shows "Australia's auto industry has a bright future with the right policy settings. We can attract new investment, new jobs, and new technologies."

Nissan parts factory: by the numbers

Staff employed: 160
Three shifts a day, seven days a week.
Factory size: 20,000 square metres on 90,000 square metres of land
Output: 2.3 million castings and about 25,000 Nissan vehicle accessories, including towbars.
Components produced: 49 separate components including 39 castings and 10 vehicle accessories.
Exports: Japan, US, UK, Thailand, South Korea and Mexico.
A small kangaroo appears in every casting Nissan makes in Australia.
Parts are fitted to: 39 different models, including Nissan, Renault and Infiniti Cars.