An export-oriented state and home to major international corporations, South Australia keeps adding to its attractions, with the Adelaide-to-Darwin rail link under construction to the north, and a natural gas pipeline from the south. Key strengths include South Australia’s automotive, defence and wine sectors. Area: 983,480 sq km Population: 1,522,200 (7.7%) Capital: Adelaide (pop. 1.08m) State Final Demand: A$51.46bn* SFD growth: 7.9% Gross State Product: A$45.77bn‡ Credit rating (S&P): AA+ Average weekly earnings: A$662.40 (11/02) Unemployment rate: 6.0% (03/03) Inflation: 3.6%* *=2002, ‡=2001/2. Source: ABS.

South Australia

Making new connections

South Australia wears many hats. Home to reputable national and international companies, it is also an exporter of quality niche products, has a celebrated wine industry, and has a proud history of innovation.

South Australia and its capital, Adelaide, boast a modern economy strategically located at the southern conjunction of Australia’s road, rail and air corridors. This geographic advantage is being enhanced by two major projects:

• the Adelaide-to-Darwin railway, a A$1.3bn project linking Australia’s ‘Top End’ with the east-west rail corridor between the southern states, providing South Australian companies a new daily direct export route to Asia through Darwin;
• the A$500m SEAGas natural gas pipeline being built from offshore in neighbouring Victoria to the industrial heartland of Adelaide.

South Australia is a major centre of commerce and industry, with strong export capabilities in road vehicles, wine, metals, wheat, seafood and aquaculture, machinery, petroleum products, meat and wool. Elaborately transformed manufactures are an increasingly significant export.

Tourism is another major strength, with everything from stunning beaches to ancient Outback landscapes, and a thriving Adelaide arts scene.

Driver’s seat
Of the 350,000 cars manufactured every year in Australia, almost half are manufactured in South Australia at the Holden and Mitsubishi plants in Adelaide. General Motors Holden, a subsidiary of Daimler Chrysler, recently announced substantial expansion plans including a A$408m upgrade of its manufacturing plant there, with more expansion expected.

New production includes the export of Holden Monaros to the US under the Pontiac GTO badge from September 2003. To increase daily production by more than 20%, Holden is introducing a third shift on its assembly line, creating more than 1000 new positions and transforming its Adelaide-based facility into a round-the-clock operation.

Food and beverage
South Australia’s food industry is expected to triple to A$15bn by 2010 – a strong performance from its agriculture production last year saw a record A$5.16bn production.

South Australia produces half the country’s wine production and almost 70% of Australia’s highly successful wine exports. The state is home to wineries, vineyards, viticulture-oenology R&D and education, as well as barrel, glass and label designers and manufacturers. The state’s major export market for wine is the United Kingdom, where sales of Australian wines have now overtaken sales of French wines. Exports to Canada and the US continue to grow.

Research and development
The head office of the CSIRO (Commonwealth Scientific & Industrial Research Organisation) Division of Human Science and Nutrition is based in Adelaide. Adelaide will also be home to the new national headquarters of the Australian Plant Functional Genomic Centre, making it a national leader in the field and one of the top three plant research centres in the world. The state also has a new Science and Research Council that is developing a 10-year strategy for science and research in South Australia.

Defence: South Australia is a centre of high-tech defence R&D

Defence
South Australia’s burgeoning defence industry has developed the state’s skills as a high-technology centre of defence R&D in systems integration, electronic warfare, surveillance and aerospace activities. Also a hub for naval shipbuilding and systems, the state wins 30% or more of Australian capital expenditure on defence.
British-owned BAE Systems, the second largest defence company in the world, has announced it will be consolidating its entire Australian operations in Adelaide. BAE Systems joins General Motors Defence and SAAB Systems, which have also chosen Adelaide as the base for their Asia-Pacific regional headquarters. General Motors Defence has decided to make Adelaide its world centre for the manufacture and export of turrets and light-armoured army vehicles.

Other defence-related companies in South Australia include Raytheon Australia, Tenix Defence Systems, Australian Submarine Corporation, National Air Support and Thales Underwater Systems.

Natural resources
The resources industry produces A$830m in exports annually and employs 20,000 people. South Australia has the largest onshore oil and gas field in Australia, as well as major deposits of base metals and gold, including one of the world’s largest copper and uranium mines. Indeed it may shortly have the biggest, following WMC’s announcement of the largest investment in South Australian history – a proposed A$5bn to expand its mining operations at Olympic Dam. If approved, the operation could produce 600,000 tonnes of copper and 10,000 tonnes of uranium annually, as well as gold and silver.

Bioscience
University and commercially-based R&D has generated internationally-recognised advances in biotherapeutics, gene-based diagnostics, molecular plant breeding and genomics, stem-cell research and livestock productivity. The bioscience sector is a substantial contributor to the state’s economy, with research data indicating that total revenue from the companies surveyed is in excess of A$98m annually. The majority of companies surveyed are active in human and animal health, medical and veterinary devices, and professional services.

BioInnovation SA, a public corporation established by the South Australian government and committed to fostering growth in the bioscience sector, has launched a A$1.5m Bio-technology Fellowship Fund to help South Australia’s three universities bring internationally-renowned scientists
to Adelaide.

Logistics
Besides the new railway to the north, recent and upcoming logistics developments include:

• Australian agribusiness AusBulk giving its Yorke Peninsula Port of Ardrossan a A$40m upgrade to full Panamax capacity, with a deepwater wharf capable of
  handling 80,000 tonne ships; and
• upgrading of Adelaide’s harbour facilities. Deeper dredging of the Outer Harbour is planned, while BRL Hardy Ltd is building a A$13m warehouse with storage capacity of 1.6m cases of wine, scheduled for completion before the end of the year. The project is part of Flinders Ports’ A$400m infrastructure, commercial and industrial upgrade.

For more information contact:
Office of Economic Development
Telephone: +61 8 8303 2400
Fax: +61 8 8303 2410
Websites: www.southaustralia.biz