Roger Cook has promised to bring manufacturing back to Western Australia on his first day in parliament as premier.
“We’re going to build stuff again,” he told reporters on Tuesday.
The Cook government will invest $6.9 million from the Local Manufacturing Investment Fund (LMIF) to support WA-based Gemco Rail as it begins a partnership with mining giant Rio Tinto.
The $15 million fund is part of an election commitment to support local companies.
“We know that over several years, we’ve run down Western Australia’s manufacturing capacity,” Mr Cook said.
“It means thousands of jobs have been lost to future Western Australians, and so we’re righting a historical wrong.
“We can build it here.
“We’ve got the know-how, we’ve got the skills – we’ve got the capability.”
Gemco Rail will build 100 iron ore rail car wagons – 40 initially, and another 10 per year across the next six years – to support Rio Tinto’s existing fleet.
The first locally built rail car is expected to be delivered in mid-2024.
Gemco Rail chief Dean Draper expects the project to create 15 to 20 jobs in the Pilbara.
The rolling stock supplier will use the $6.9 million to upgrade its Forrestfield facility and establish another in Karratha.
The Karratha facility will reduce the need to transport iron ore cars between the Pilbara and Perth, removing an estimated 150 truck journeys from roads and 300 tonnes of carbon dioxide each year.
“We know we have a big role to play here in Western Australia,” Rio Tinto Iron Ore CEO Simon Trott told reporters.
“It’s good for the state – it’s good for our business to have these components and rail cars made here in Western Australia.”
Rio Tinto will spend about $150 million to buy the rail cars across six years and continue to invest in bearing maintenance.