A Queensland mining technology company will be the first cab off the rank to receive money from a multi-billion dollar federal manufacturing fund.
The Toowoomba-based Russell Mineral Equipment will get the monetary boost to keep manufacturing jobs in Australia as part of the Labor government's $15 billion National Reconstruction Fund, more than a year after it was set up.
Russell Mineral Equipment, which helps develop technology used in hard rock mining, will get $40 million.
The fund aims to drive investment in seven priority areas: resources, agriculture, transport, medical sciences, renewables and low-emissions technology and defence.
Industry Minister Ed Husic said this first investment marked the start of the government's plan to strengthen manufacturing industries in Australia.
"It's an investment we've made on behalf of the Australian people, an investment that will secure financial return, as well as keeping a great Aussie company in Aussie hands," he told reporters in Canberra on Tuesday.
"We said as a government we would build our manufacturing capabilities, that we wanted to grow sovereign capability, that we wanted to be able to stand more on our own two feet."
Mr Husic said announcements on other businesses in line for funding would be made in the coming weeks, independently of the government.
"We are not about politically colour-coded spreadsheets making decisions on the basis of political interest over national interest," he said.
"We deliberately set up the board of the National Reconstruction Fund to be independent.
"We want taxpayers to have the confidence that the proper decisions are being made."
Fund chair Martijn Wilder said the initial investment would allow the recipient Australian business to expand.
"A key part of what's really attractive about this investment for us is not just putting money for the company, but it's allowing the innovation the company has built to grow," he said.
"Our investment in RME will also help us to protect Australian manufacturing."
