More components for Melbourne’s new G Class trams will be manufactured in Victoria following a significant partnership between the Victorian-based company Assemco and China’s leading manufacturer of train and tram interior fittings, KN (Kangni). The agreement was formalized today in Shanghai by Premier Jacinta Allan during a ceremony that marks a pivotal moment for the local tram manufacturing sector.
The Memorandum of Understanding (MoU) aims to enhance skills and technological capabilities within Victoria’s tram manufacturing industry, particularly focusing on the assembly of ceiling panels for the new G Class trams. KN, which holds the largest market share in China for the production of train and tram components, will facilitate knowledge transfer to Assemco, enabling the company to take over the assembly, testing, and painting of these panels.
Assemco, located in Croydon South, employs approximately 115 people and has nearly three decades of experience in rail manufacturing. This partnership with KN is expected to create new jobs immediately while strengthening the local supply chain in the long term.
Investment in Local Economy
This deal is part of a broader effort by the Victorian Government to boost local manufacturing capabilities. The Government’s record investment of $1.85 billion aims to build 100 new low-floor G Class trams and establish a new depot in Victoria, marking the largest investment in trams in Australian history. The initiative is designed to ensure that at least 65 percent of the trams’ components are sourced locally, supporting up to 1,900 Victorian jobs.
Premier Allan emphasized the importance of the partnership, stating, “We’re building 100 new trams in Victoria, and now the manufacturing superpower of the world is sharing their skills with us.” She highlighted her administration’s China Strategy, which aims to attract Chinese investment and innovation to Victoria, thereby creating jobs and enhancing industry stability in a fluctuating global economy.
Minister for Public and Active Transport Gabrielle Williams reinforced the historical significance of tram manufacturing in Victoria, noting, “Victoria has been building trams for more than a century, and this investment in skills enhances our capacity even further as we build 100 new Victorian-made trams.” She pointed out that the local rolling stock industry supports thousands of skilled jobs within manufacturing and its supply chain.
Strengthening Global Connections
Alstom, a key player in this initiative, is leading a delegation of Victorian manufacturers, including Copamate, New Touch Industries, and Catten Industries. Alstom’s Managing Director Pascal Dupond expressed pride in the collaboration, stating, “We are proud to be manufacturing the G Class tram in Victoria and creating pathways for local suppliers to connect with global business and supply chain.” He noted that this visit underscores the strong partnership between Alstom and the Victorian Government and highlights a commitment to ongoing investment in the local supply chain.
The collaboration between Assemco and KN represents a significant step forward for Victoria’s tram manufacturing sector, promising to enhance local capabilities and create a more robust economic framework that benefits both the region and its workforce. As the partnership unfolds, it is expected to pave the way for future innovations and expansions in the industry.
