NSW shortlists 10 manufacturers for MMC expansion program

Ten proponents have advanced from more than 60 submissions for a NSW Government program aimed at expanding housing manufacturing capacity.

The NSW Government has shortlisted 10 proponents for the next stage of its Modern Methods of Construction Industry Expansion Program, following more than 60 submissions from Australia and overseas.

Around two-thirds of the original submissions came from Australian organisations, with proposals spanning modular and prefabricated construction, robotics-enabled manufacturing and kit-of-parts systems.

The shortlisted proponents have now been invited to participate in the Request for Proposal stage.

Manufacturing capacity moves to next stage
The program is intended to support one or more proponents to establish a new Advanced Manufacturing Facility in NSW or expand and diversify an existing operation.

A particular focus will be increasing manufacturing capacity for medium and higher-density housing, although successful facilities could also supply components for other housing types, schools and hospitals.

The government has identified five MMC categories targeted by the procurement: 3D primary structural systems, 2D primary structural systems, non-systemised structural components, additive manufacturing, and non-structural assemblies and sub-assemblies.

The Request for Proposal stage opened on 16 September and is scheduled to close on 19 October. Successful projects are expected to be announced following evaluation later this year.

The type and scale of government assistance will depend on the proposals ultimately selected. Potential support identified by the government includes financial grants, equity investment, concessional loans, training and industry development assistance, and access to government-owned land under concessional tenure arrangements.

Proponents are required to identify and justify the government support they would need to establish or expand their manufacturing operations.

The expansion program forms part of the NSW Government’s broader MMC Innovation Facility initiative, alongside the Housing Innovation in Construction Fund and Housing Innovation Network Grants Program.

When the original Expression of Interest opened on 2 July, the government also indicated it could consider agreements to purchase output from successful manufacturing facilities, potentially providing manufacturers with an initial pipeline of housing and other public-sector projects.

The latest stage moves the program beyond broad market testing and towards detailed proposals from a smaller group of manufacturers.

The identities of the 10 shortlisted proponents have not been publicly disclosed.

The NSW Government says the program is intended to increase local prefabricated component production, strengthen domestic supply chains and progressively reduce construction costs, while developing advanced manufacturing capability and jobs within the state.

Find the NSW Government’s Modern Methods of Construction Industry Expansion Program HERE