Tag / I Choose SA for Trade and Investment

by brandsa2018

Adelaide a ‘vibrant market for airlines’

The striking facade of the new $50 million Atura Airport Hotel, rising proudly next to the arrival plaza, is just the first sign that much is changing at Adelaide Airport – and further expansion is set to take off.

Construction company Watpac has commenced a $165 million transformation of the airport terminal, scheduled for completion by 2021, which will double international arrival and departure areas, and increase the airport’s dining and retail precinct by 80%.

This is growth that reflects a stimulated business environment that has taken root in South Australia, and Adelaide Airport managing director Mark Young is confident that this positive energy will keep escalating.

“The airport management has been busy for the past decade promoting SA’s image – as a place to visit, to study, to live, to do business and trade,” says Mark.

“It takes time for that to gain traction, but we’re seeing the results of all that promotional work, and now we need to expand the airport to accommodate it properly.”

Since Adelaide’s current airport terminal opened in 2005, growth has been significant and swift. Adelaide Airport now processes more than eight million passengers a year, a rise of almost 50% in a decade, with one million being international passengers – the consequence of being able to fly non-stop from Adelaide to nine international locations, which connect to more than 300 cities.

However, the increased number of international fights is only partially tied to passenger growth. The lynchpin is increased freight traffic – both for imports, and for exported luxury goods, especially SA’s legion of premium foods.

“Expansion is tied directly to SA business,” says Mark. “It’s the freight volume more than passenger numbers that shows this state as being a vibrant market for airlines, and Adelaide is now directly connected to some of the biggest trade distribution hubs in the world – Dubai, Qatar, Guangzhou – through Adelaide Airport.”

Access to South China is a current focus of increased flight activity, but smaller markets are also expanding. Fiji Air is bringing larger aircraft into Adelaide, and will be scheduling more flights.

An artist’s impression of the transformations at Adelaide Airport.

“Sure, some partnerships are building from a small base, but these form important parts of a bigger picture,” says Mark. “It’s not our aim to cannibalise existing routes and airlines, but to achieve strategic growth through reaching out to new markets.”

This includes talking with airline carriers about a possible direct route to America’s west coast – but Mark concedes that this won’t happen in a hurry.

“It took seven years of negotiation with Emirates before its route and flights to Adelaide were confirmed. It will be a similar long process of continual discussion regarding a route to the US, but I believe it is moving forward,” he says. “It’s a way off, but we believe that the market for such flights is there, and our marketing efforts have commenced.”

Such ambition to pursue vigorous expansion puts existing Adelaide Airport facilities under hard scrutiny. Acknowledging that the current international arrivals hall has inefficiencies at peak times, Mark says the new construction work – ironically located where Adelaide Airport’s 1980s international arrivals shed once stood – will double current capacity, with provision for infrastructure to double again.

International upgrades will include a second, longer baggage belt for arrivals, more space for emigration and immigration processing, expanded security screening, a larger duty free precinct for arrivals and departures, and an expanded dining and retail precinct that will add an estimated 600 retail jobs.

An artist’s impression of the larger duty free precinct at Adelaide Airport.

Other improvements that will soon be taking shape in the airport terminal will include a new premium international lounge and dedicated VIP facilities, along with a relocation of the Virgin Australia Lounge.

The first sign of progress in this big airport transformation was the opening in September 2018 of the seven-story, 165-room Atura Hotel abutting the terminal.

It allows hotel guests to check out and proceed straight to their flight through a direct level-two connection into the airport’s check-in counters. Such an improvement not only accommodates the current needs of travellers, but also serves as a necessary springboard to further growth, and sends a powerful signal to the rest of the nation that Adelaide is a destination on the rise.

“While we still have sufficient capacity to meet future forecasted growth in the number of flights coming to Adelaide, we’re quickly reaching capacity within the existing terminal, and we know there’s potential for more growth,” says Mark.

There are 1.4 million South Australians travelling overseas each year, so about 30% of these people are currently flying out from other Australian cities, and with more flight options we will see that more of these people can be travelling directly from Adelaide.

“The growth in Adelaide Airport is a signal to the state,” Mark says. “It builds confidence in who we are and what we do – and it’s all moving forward.”

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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by brandsa2018

Harbour Bottling enters new export markets as love for SA wine grows

A growing taste for South Australian wine overseas has led to a boost in business and new export markets for an Osborne bottling plant.

Wine export business Harbour Bottling, located near Adelaide’s major shipping container port, began exporting wine to India, the UK and Canada last year, on top of its usual trade to China.

Previously, all its products were exported to China – a market that Harbour Bottling director Wayne Chao says is also continuing its love for SA wine.

“Because of the nature of our clients, 100% of our products went to China, but since last year we started our first export to India and since late last year we are going to the UK and Canada,” he says. “So we are now opening more doors for exporting to different countries.”

AWTE Enterprise is the company behind Harbour Bottling, which provides contract wine bottling, packaging, warehousing and exporting services to the wine industry.

Harbour Bottling processes about 4000 wine bottles an hour.

The bottling plant, the only of its kind in Australia located so close to an export hub, produces about 4000 bottles an hour, equating to an average of 40,000 bottles a day.

The facility has a capacity to fill 600 shipping containers a year, a limit Wayne says is expected to be reached within the next two years, prompting plans for a second production line and a possible relocation of the business in the area.

“Last calendar year we produced more than five million bottles, that’s about 400 containers a year,” he says.

“Our bottling line capacity is about 600 containers (a year) so with the increasing trend of orders, we are about to reach our limit in maybe the next 12–24 months.”

According to Wine Australia’s export statistics from 12 months to September 2018, SA exported 408 million litres of wine, a 7% increase on the previous year.

SA’s wine export value was also up by 15% on the previous year at $1.67 billion. SA’s top export market by value and volume was China, followed by the UK.

Wayne says he believes the China-Australia Free Trade Agreement (ChAFTA) entered in 2015 has made “quite a bit of difference” to the wine trading market.

“In the past three years our business has been growing by about 30–40% every year. For us that’s a big increase and I think it’s definitely a benefit of the ChAFTA,” he says.

In January this year import tariffs on Australian bottled wines to China were abolished, meaning more wine is expected to make its way to the east Asian country.

Habour Bottling was established in 2017 by four Chinese entrepreneurs to help cater for Chinese demand for Aussie wine. Directors Jason Zhao, Jonathon Li, Simon Hou and Wayne Chao had each pursued different study and career pathways, including winemaking, computer science, media, medical science, real estate, civil engineering and wine exporting, before launching their business venture.

AWTE Enterprise and Harbour Bottling director Wayne Chao.

Together they saw a gap in the market for a “one-stop wine exporting logistics solution”. They were fond of Adelaide’s lifestyle offerings and the state’s world-class wine regions.

“We saw the opportunity in wine exporting. SA has many world-class wine regions that produce a lot of wine,” Wayne says.  “Australian wine has been a growing market in China, especially in the last couple of years. It’s a booming business.”

Harbour Bottling’s major client is Orchid Wine Estate – owned by Jonathon Li and Jason Zhao – which exports about 200 containers a year. Harbour Bottling works with local producers and wine brands from various leading wine regions across SA.

One of Harbour Bottling’s four directors Simon Hou recently stepped away from the business after being elected as an Adelaide City Councillor and taking on an extra workload.

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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by brandsa2018

Boost after buyouts of SA businesses

The recent sale of several high-profile South Australian food and beverage manufacturing companies has presented new growth opportunities due to significant capital injection, without sacrificing the input of local talent and leadership.

Udder Delights Cheese, Pirate Life Brewery and MOJO Kombucha are all now owned by international corporations, but the local entrepreneurs who formed these companies have remained at their helm.

They say new ownership has strengthened these SA-based operations and increased the SA workforce, rather than having enforced changes applied to existing operations.

Udder Delights founder Sheree Sullivan says the Lobethal-based cheese producer has continued to prosper since giant Japanese dairy company Snow Brand purchased a majority shareholding in November 2017.

She underlines that foreign investment has provided an essential platform for growth that most local people don’t realise, while Sheree and her husband Saul have remained in the roles of chief executive and managing director respectively.

Udder Delights is led by Sheree and Saul Sullivan.

“Many people just think we’re sold out, and there has been negative social media messages posted, but these people don’t understand how important it is for SA to have international business investment such as this,” explains Sheree.

“This has ensured that Udder Delights can continue to grow stronger as a SA manufacturer, far beyond what we could invest in the company.”

In the year since the change of ownership, Udder Delights has recorded 35% growth in sales, while $1 million infrastructure improvements have been made at the Lobethal factory in the Adelaide Hills, with another $1 million earmarked for further development in the next few years, based on the Sullivans’ suggestions.

“We continue to put together the vision of what we want the business to look like,” says Sheree.

“We still have ambitions for the company to grow, and Saul is now more focused on product development. Before the sale, he was under too much pressure and had too little free time to think creatively and innovate. Now he has the headspace and motivation to start testing new cheeses again.”

The Udder Delights factory in Lobethal.

The Sullivans say this positive sign emphasises that the new company ownership structure has quickly settled into a productive rhythm and is playing to Udder Delights’ enduring strengths.

“Our investors have seen the value in keeping the entrepreneurs who started this company, because they couldn’t do the same things themselves. They respect our ingenuity and vision,” says Sheree.

“They also understand that we bring experience and knowledge to the new company structure, while they’ve lifted the company’s performance in areas where we didn’t do so well. With the sum of all this, we can see that the company is thriving.”

In September 2018, Willunga husband and wife team Anthony and Sarah Crabb sold their company MOJO Kombucha to Coca-Cola. What started a decade earlier with experimental blobs of bacteria and yeast in their back shed to create an innovative drink that was initially sold at farmers’ markets and health food shops, made the transition to supermarkets.

This saw annual turnover rise to $7 million a year, making it the market leader in kombucha drinks and attracting the attention of Coke.

MOJO CEO and co-founder Anthony Crabb with some of the kombucha products.

While MOJO grew quickly through its initial decade without significant external funding, additional capital was needed for it to remain market leader in this rapidly-expanding drinks sector, and the purchase offer from Coke suited the Crabbs’ purposes perfectly.

“While other investment options had been considered, the proposition by Coke was the most attractive and beneficial,” explains MOJO director of sales and marketing Andrew Buttery.

“It allowed Anthony to continue in his role and run the business from its Willunga base as an independent operation, with the benefit of plugging into Coke’s sales and marketing network. This was the best option to take the business to another level, both nationally and internationally.”

Mojo expects to double its sales volume in 2019 as a consequence of Coke’s reach beyond grocery stores into petrol and convenience stores, and on-premise hospitality venues – all happening from a SA production base.

“The ownership transition has been smooth, albeit going through a steep learning curve,” says Andrew. “The support Anthony is getting from the Coke team has been first class, and we expect a big future.”

From left to right: Co-founder Jack Cameron – Hon. David Ridgway MLC, Minister for Trade, Tourism and Investment – Pirate Life CEO John Phinney – Senior Project Manager Josh Smith from Promanage Australia.

Pirate Life has immediately benefitted since being purchased in November 2018 by Carlton & United Breweries, a subsidiary of Belgium-based international drinks company Anheuser-Busch InBev.

A new $10 million Pirate Life brewery and canning facility is being constructed at Port Adelaide, due to be completed in March. It will enable the popular craft brewer to escalate annual production from about three million litres to about eight million litres, to meet growing national demand.

It also means the company is able to operate two facilities, with its original Hindmarsh brewery now dedicated to creating new beers, including innovative sours and barrel-aged brews.

Pirate Life is expecting continued growth following on from its takeover by Carlton & United Breweries.

Pirate Life co-founder and chief brewer Jared Proudfoot says the sale will enable continued growth for the company that has enjoyed immediate popularity since releasing its first beers in March 2015.

“The reality is we have run out of capacity at Hindmarsh. With this partnership we’re in a fortunate position to upgrade to a new, bigger brewery while dedicating Hindmarsh to innovate and craft a whole range of new styles to make sure we keep pushing the boundaries and evolving.

“Our whole team is sticking around and it’s invaluable for all of us to be able to benefit from the knowledge and skills of some of the best brewers in the world.”

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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by brandsa2018

Adelaide-based SEAPA excelling in international markets

Existing outside the oyster industry has enabled Adelaide-based plastics fabrication company SEAPA to forge radical ideas that have revolutionised oyster farming systems and built a globally influential business.

The popularity of its innovative oyster harvesting baskets has seen SEAPA take out the Agribusiness Award and Australian Exporter of the Year Award at the 2018 Australian Export Awards in Canberra.

This underlines the company’s spiralling success, building on its 2018 Business SA Export Agribusiness Award for outstanding international success in the field of agricultural products.

“Our background is in plastics injection moulding – not oyster farming – so our strength has been forming close partnerships with primary producers and coming up with innovative solutions to their problems,” says Andy Will, SEAPA group general manager.

“The ability to adapt rather than impose our products on customers has made them more beneficial to specific needs.”

SEAPA group general manager Andy Will, left, accepts the Export Agribusiness Award from Trade, Tourism and Investment Minister Simon Birmingham.

Oyster farmers around the world have embraced SEAPA’s long, plastic mesh baskets that are laid horizontally in the water from adjustable long lines, which enables shifting ocean tides to rumble the oysters inside the baskets.

This marks a significant departure from the older fixed rack and rail system, involving growing oysters on fixed trays along submerged wooden rails.

SEAPA’s horizontal basket system provides the flexibility for farmers to adjust the height of baskets to accommodate tidal movements, encouraging more rapid growth and development of well-cupped oysters with a clean hard shell and high meat content.

“All of our customers want the same outcomes – higher quality oysters, produced with greater efficiency,” says Andy.

“They want a farming system flexible enough to react to different seasons and environmental conditions, so that’s what we have worked closely with them to design and manufacture.”

For this system and these radical ideas to enjoy success beyond South Australia’s Eyre Peninsula, where they have been trialed and successfully implemented, it has been necessary for SEAPA to be patient and strategic.

The oyster harvesting baskets in action.

Many countries that have employed the same oyster harvesting systems for centuries are wary of implementing change; France is very dogmatic about continuing traditional methods, Japan even more so.

“None of this happens overnight,” says Andy. “We have been in the US since the early 2000s, and more than a decade in France.”

“We have to make sure that the initial systems that we introduce into these countries are operating with optimal success in their farms, and we want their neighbours to notice that our systems involve a lot less labour and more impressive yields, because we know they need to see something in action before they believe it works.”

Since 2001, SEAPA has been exporting its range of products manufactured in Adelaide, with 75% of SEAPA’s revenue in the previous financial year coming from international markets.

Asia has emerged as a key buyer of SEAPA products, with significant sales progress in China, Japan and Korea stemming from the recent removal of prohibitive tariffs.

Continued growth in these markets represents a significant prize; while 13,000 tonnes of oysters are produced annually in Australia, 2.2 million tonnes are produced in China each year, and SEAPA’s footprint there is currently small but with the potential for rapid growth.

Technical innovation has been a pillar of SEAPA’s success, with its large range of 60 products allowing its oyster harvesting system to be used in almost any farming environment.

SEAPA group general manager Andy Will, left, managing director Garry Thompson and group sales manager Alex Jack.

SEAPA’s technological innovation is led by the design and manufacturing teams at its parent company, Adelaide plastic injection moulder Garon Plastics, which uses advanced design tools and 3D printing to rapidly develop and deploy new ideas for testing and refinement, giving farmers the tools they need, when they need them.

Being based in Adelaide has several advantages for SEAPA, from its established and progressive manufacturing plant, to performing extensive research and development through working closely with SA’s league of oyster farmers.

“We see the farmers that use our products as our partners in the design of the system. We wouldn’t be able to develop the products without their input,” Andy says.

However, having its head office and manufacturing plant located a long way from international markets means that SEAPA has needed to be nimble and strategic in forging its global sales network across 20 countries, benefitting from establishing local offices in its target markets across North Asia, Europe, and North America.

While SEAPA has already enjoyed a strong performance in the current financial year, Andy can see that global oyster eating trends are changing, with a rise in premium oyster bars in the US and Asia meaning that demand for excellent oysters in shell will increase, and therefore provide increased opportunities for the introduction of more of SEAPA’s innovative oyster basket systems.

“There is great success that we have enjoyed through the first 20 years of this company, but greater opportunities now lay ahead,” says Andy, “and we have to remain innovative and agile to make sure we can reap the benefits.”

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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by brandsa2018

Trade and investment sectors offer endless opportunity

A highly competitive business environment, a skilled and educated workforce and a culture of innovation are some aspects that make South Australia a prime spot for trade and investment opportunities.

Our state is often celebrated for its enviable lifestyle offerings and cost advantages matched by no other Australian state, providing the perfect platform for outside companies to invest and develop, and for homegrown businesses to grow and thrive.

SA also has a 24-hour connection to key international markets and a solid reputation for producing world-class products and premium services.

Throughout January and February, Brand South Australia is exploring the trade and investment sector, as part of its successful I Choose SA campaign.

Here on Brand SA News, we’ll bring you examples of businesses who have chosen our state as the base of their operations as well as success stories of those exporting their goods and services to the world.

We’ll also share articles on international businesses choosing to invest in SA, develop a presence here and take advantage of our highly skilled and educated workforce.

One example is German battery giant Sonnen, attracted to SA by its can-do attitude and its deep, technical manufacturing skills base developed from a long history in the automotive industry.

The official launch of Sonnen at the former Holden factory in Adelaide’s north.

It’s of course also relevant to note British steel magnate Sanjeev Gupta, owner of the Whyalla steelworks, and his plans for major investments and ambitious upgrades to the steel city. We’ll also tell you about SA businesses that have come under foreign ownership – companies like Pirate Life Brewing, Udder Delights and Mojo Kombucha.

Although their ownership has left SA, these three businesses are still based in the state but have the opportunity to expand, create more jobs and continue to deliver the premium products we love.

SA’s goods and services are valued by key international markets, thanks to our outstanding freight connections and cold chain logistics to South East Asia, the Middle East and within Australia.

As well as successful commodities such as iron, copper and energy resources, SA is renowned for its food and wine exports due to impeccable food safety standards. Other industries, including education, defence, advanced manufacturing and space, also have ties to our trade sector.

Among the most exciting investment opportunity is Australia’s Space Agency, to be developed in Lot Fourteen (old Royal Adelaide Hospital), boosting our capabilities in innovation and technology.

Interested to learn more about SA’s trade and investment industry? Head along to Brand South Australia’s Industry Briefing at the Adelaide Convention Centre on January 31.

Guests will hear from Minister for Trade, Tourism and Investment, David Ridgway.

What: Brand South Australia I Choose SA for Trade and Investment Industry Briefing
When: January 31, 4.30–6.30pm
Where: Adelaide Convention Centre
Tickets: click here to purchase

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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by brandsa2018

Why energy giant Sonnen chose to invest in SA

Global energy storage giant Sonnen is producing its first Australian assembled batteries at the former Holden factory in Elizabeth as its workforce builds to some 150 within months.

Operations and finance managing director Marc Sheldon believes South Australia is the ideal place for the German-headquartered company to work toward producing 10,000 batteries a year to meet demand in Australia and the neighbouring Asia Pacific region.

“The energy market as it exists in SA is unique, it is more advanced than any OECD country in its transition to renewable energy,” Marc says.

This, he says, gives the Sonnen company the opportunity to address challenges and be prepared for a market it expects to develop rapidly throughout the region in the next few years.

It also means Sonnen has established itself in a state where it has access to highly skilled workers and companies with a “can do” attitude.

Sonnen’s operations and finance managing director Marc Sheldon, left, Sonnen CEO Christoph Ostermann and managing director for Australia and Asia Pacific Nathan Dunn.

Marc says more than 50 local employees are already on the production line and almost all of them are ex-Holden staff – while another more than 100 are working as installers through the supply chain.

The company is well on the way to creating about 430 new jobs in the state within 18 months, he says, as outlined when the new Liberal State Government announced earlier this year that Sonnen would be moving into the repurposed Holden factory.

“What we do is advanced manufacturing in the purest sense, we leverage the innate capabilities in the market itself,” Marc says.

“We’ve indicated before that one of the key challenges for us when we are choosing a site is around availability of talent and availability of staff to fill those roles, what we’ve now really found is lots of well educated, well trained staff.”

Sonnen is supporting the new $100 million Home Battery Scheme announced by the State Government in September that provides a subsidy of up to $6000 per household to install home battery systems.

From October, 40,000 South Australian households have had access to the scheme designed to reduce electricity costs and demand on the network, in turn delivering lower power prices for all South Australians.

Sonnen CEO Christoph Ostermann, far left, shows Premier Steven Marshall, and Minister for Energy and Mining Dan van Holst Pellekaan, far right, Sonnen systems at the company’s official launch in SA.

The $100 million in State Government subsidies was also matched with $100 million in finance from the Clean Energy Finance Corporation to provide low-interest loans for the balance of the battery and new solar if required.

When the scheme was announced, Premier Steven Marshall said priority was being given to qualified system providers who commit to installing approved battery systems that are manufactured or assembled in SA.

Sonnen was the first provider to be afforded the nine-week priority period – meaning their products were exclusively available to households – with additional brands available after the nine-week period.

The company describes its world-leading sonnenBatterie as a high-tech energy storage system that automatically adjusts the energy usage in a household in combination with solar panels to provide clean, renewable energy.

“There’s a reason why we’re going to SA, we’re quite impressed with what the government has been able to put together since its election and the feeling we’ve received from people in SA is really good, there’s a can-do attitude,” Marc says.

“Businesses we meet with say we can do that right now or let’s sit down and see how we can make that happen … that makes us quite happy looking at the future.”

Minister for Energy and Mining Dan van Holst Pellekaan, left, and Premier Steven Marshall congratulate Sonnen CEO Christoph Ostermann, on the company’s establishment in Adelaide.

Sonnen will use Adelaide as its Australian headquarters and shipping centre for the Asian region, and Marc says the first SA assembled batteries to be exported will head to New Zealand in January.

The company aims to assemble and manufacture 50,000 energy storage systems at the site over the next five years, after its plans to establish the battery production plant in Adelaide were initially announced in February 2018.

Manufacturing costs are also now proving to be positive from the initial cost projected in pre-planning as Marc says there already had been an increase in productivity per head by 30% as the process was streamlined.

Sonnen has also appointed a new Australian managing director Nathan Dunn to support growth with Marc, who has worked for Sonnen for the past three years, saying there was much potential in SA.

“I think in South Australia everything is moving in the right direction and a lot of very interesting developments are happening right now that will benefit the state,” he adds.

Header image: The Sonnen Adelaide team. Photo by Danielle Marie.

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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