Manufacturing
The Territory has a smaller manufacturing industry compared to other jurisdictions, with manufacturing accounting for 5.9% of Gross State Product (GSP) in 2009-10, compared to 8.6% nationally. Unlike other jurisdictions, the Territory’s manufacturing sector is dominated by a small number of large resource-based processing facilities. These include the Rio Tinto Alcan alumina refinery at Gove and the Darwin LNG plant at Wickham Point. The Territory also has a helium manufacturing operation owned by BOC Limited that commenced production on 3 March 2010. The balance of manufacturing activity in the Territory is distributed among smaller operations that manufacture products for export and local consumption, for example steel, wood, paper and food.
Metal Products
Manufacturing in the Territory is dominated by metal products manufacturing (primarily manufacturing bauxite to alumina), which accounts for 40% of total manufacturing value added, compared to 24% nationally.
The metal production sectors of the manufacturing industry also include sheet metal fabrication and the production of materials used in the construction industry.
Fuels and Chemicals
Fuels and chemicals manufacturing in the Territory is growing and, with the completion of the Darwin Liquid Natural Gas (LNG) plant in 2006, accounts for 24% of total manufacturing value added, compared to 16% nationally. This sector also accounts for 4.2% of Territory manufacturing employment. The LNG plant produced an estimated 2.9 million tonnes of LNG in 2007-08.
Machinery and Equipment
Machinery and equipment manufacturing accounts for 9% of manufacturing value added in the Northern Territory. This sector is labour intensive, accounting for about 22% of Territory manufacturing employment.
Machine and equipment manufacturing in the Territory is focused on servicing the mining and Defence sectors, in particular, producing tools and equipment for the maintenance and development of the large defence and mining machinery used throughout the Territory. The maintenance requirements of the large, and still increasing, Defence presence has the potential to significantly impact on and increase the contribution of specialist machinery and equipment manufacturing in the Territory.
Darwin Marine Supply Base
The development of the Marine Supply Base in Darwin’s main port area will provide key infrastructure and services for the development of the offshore oil and gas industry. The Marine Supply Base will create opportunities for current and new industries involved in Darwin’s development as a regional petroleum services hub.
Key Facts
- In 2009-10, manufacturing activity accounted for 5.9% of Gross State Product ($1 billion) and 4% of total employment.
- Manufacturing continues to grow with alumina and LNG production dominating Territory manufacturing.
- Northern Territory manufacturing focus is on the repair and maintenance of major resources and Defence projects.
- There are excellent prospects to increase investment in and the value of manufacturing through new resource development projects.
- Future short and medium term growth is bright with the resources sector providing the most promising potential.
- Sustained growth will come through projects such as the proposed expansion of the Darwin LNG plant, the $20+ billion Inpex LNG project and the Darwin Marine Supply Base as well as potential minerals development and infrastructure projects.
Source: 2011-12 NT Budget.
In the long term, prospects include Timor Sea energy production and the proposed Inpex, eight million tonnes per annum LNG development bringing gas onshore to Darwin from the Ichthys gas field in Western Australia. These projects will operate for many decades and when combined with ongoing Defence support requirements forecasts indicate long term demand for goods and services.
Key Industry Contact
The Manufacturers Council of the Chamber of Commerce NT is a member-based non-government organisation representing the manufacturing sector in the Northern Territory. The Manufacturers Council produces the Service, Supply & Manufacturers Directory which includes contact details and services descriptions for businesses involved in manufacturing.
Government Support
The Department of Business and Employment’s Industry Development Unit is growing the Northern Territory’s economic base by working with targeted industry sectors to identify new and additional opportunities for Territory businesses.
Industry Development and Investment
Contact
Industry Development, |
||
| Tel: +61 8 8924-3839 Email: investment.dbe@nt.gov.au |
Department of Business and Employment Industry Development GPO Box 3200 Darwin NT 0801 |
Ground Floor Development House 76 The Esplanade Darwin NT 0800 |
Content current at 27 May 2011.
