Oba-dares to grow rig manufacturing business

Two Toowoomba manufacturers will grow their businesses and employ more staff thanks to combined grants of more than $1 million, from the Queensland Government’s Made in Queensland program.  

A grant of more than $937,000 will help Obadare Group become Australia’s only American Petroleum Institute local rig manufacturer for the oil and gas sector, which will create 15 new local job.  

Minister for Regional Development and Manufacturing Glenn Butcher announced the grant on the Obadare shop floor this morning and congratulated the business on its innovative and ambitious strategy to transition from a rig-component manufacturer to becoming a start-to-end full-rig manufacturer.   

“Growing the business and getting to that next level sometimes means taking risks, being bold and the Made in Queensland grant program is designed to help manufacturers like Obadare Group, who have a very clear idea and a sound plan for growth, can take that step,” he said.

“Rigs for the oil and gas sector are currently manufactured overseas and imported to Australia. Obadare is transitioning from being a component manufacturer to a whole-rig manufacturer, providing Australian designs and innovation to customers - that’s a major step and one to be congratulated and I am so pleased we have been able to support them with this grant,” Mr Butcher said.

“We know Queensland manufacturers are the best in the business and the world is starting to see that too.”

Obadare Group Operations Manager Stephen Lucht said the government support was invaluable for helping the company to achieve its goals.

“Australian manufacturing is such a tough industry and government support is really crucial for success. You’ve got to go to market with the most efficient tools and machinery available – nobody gets handed work by chance,” he said.

The business, which employs 70 people, will use the grant funding to invest in several pieces of equipment, including augmented reality headsets that would support customers through the rig package commissioning and long-term maintenance / trouble shooting.

Mr Lucht said the grant funding would allow the business to upskill 25 current staff and - thanks to the purchase of new robotic steel profiling machinery - reduce metal processing waste and increase the efficiency of steel processing activity.

“Obadare is a leading Queensland advanced manufacturer, nationally recognised as a regional employer of choice supported by cutting-edge, advanced robotics, technologies and systems within a modern manufacturing facility.

“The faith that the Queensland Government is showing in local manufacturing is fantastic and will be repaid through jobs growth and positive impact on the local economy,” Mr Lucht said.

Minister Butcher also congratulated Wellcamp business Tanuki on its grant of almost $200,000.

Tanuki, which creates products that help mitigate sodic and crusting soil problems, will use the grant to buy a machine which automates their packaging process.

“This grant is going to help Tanuki hire eight more locals, over the next five years, which will drive greater capacity and output from this great business,” Mr Butcher said.

Tanuki Managing Director Durell Hammond said the $198,849 grant had been a vital part of the solution for the business that was established in 2013.

“This solves a serious bottleneck problem for us and we are now able to automate the process that packages the products into bags and then loads them onto pallets, faster and safer than if done manually,” Mr Hammond said.

“We’re tapping into a new area, distributing this product to customers throughout Australia, and this grant has allowed us to smooth out the last mile of the production process – distribution - which is often the hardest part in a country as large and spread-out as Australia,” he said.

Mr Butcher said the Made in Queensland grant program had supported 105 advanced manufacturing projects since its inception in 2017 and was expected to create more than 7,445 jobs, while generating more than $140 million in private sector investment. 

ENDS

Emilia Hutchinson - 0437 060 435