A significant partnership has been established to enhance tram manufacturing in Victoria, Australia. Victorian-owned Assemco has signed a Memorandum of Understanding with KN, China’s largest manufacturer of train and tram interior fittings, to facilitate the local assembly of components for the new G Class trams. The agreement was formalized in Shanghai on March 15, 2024, during Premier Jacinta Allan‘s visit to China.
This collaboration aims to transfer advanced skills and technology to Victoria’s tram manufacturing sector. KN, which holds the largest market share for rolling stock components in China, will enable Assemco to take over the assembly, testing, and painting of ceiling panels for the G Class trams. This initiative is expected to enhance local capabilities and contribute to the broader supply chain.
Assemco, based in Croydon South, employs approximately 115 people and boasts nearly 30 years of experience in rail manufacturing. The partnership with KN is anticipated to create new jobs and strengthen the local supply chain, aligning with the Victorian Government’s broader strategy to boost local industries.
Investment in Local Manufacturing
The signing of this agreement is part of a larger delegation of Victorian manufacturers led by Alstom Australia and New Zealand, which includes companies such as Copamate, New Touch Industries, and Catten Industries. This delegation operates under the support of the Allan Labor Government, highlighting a commitment to local manufacturing.
The Victorian Government’s historic investment of $1.85 billion aims to produce 100 low-floor G Class trams and establish a new depot. This project represents the largest investment in tram manufacturing in Australian history, with a commitment to at least 65 percent local content. It is projected to support approximately 1,900 jobs in Victoria.
Premier Allan emphasized the significance of this investment, 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 that this partnership is part of her China Strategy, which seeks to foster innovation and investment from Chinese businesses into Victoria, ultimately delivering jobs and stability in a fluctuating global economy.
Enhancing Skills and Job Creation
Minister for Public and Active Transport Gabrielle Williams reinforced the importance of this investment, 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.” Williams pointed out that Victoria’s rolling stock industry significantly contributes to skilled employment in both manufacturing and the supply chain.
Alstom’s Managing Director Pascal Dupond expressed pride in the ongoing tram production in Victoria, 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.” This statement underscores the strong partnership Alstom has established with the Victorian Government, aiming to reinforce local manufacturing capabilities.
Overall, this partnership between Assemco and KN not only enhances tram manufacturing in Victoria but also represents a strategic move towards strengthening local industries and economies in a competitive global landscape.
