International giant Hitachi in secret talks with SAHMRI as authorities scramble to save crisis hit cancer bunker from financial collapse

One of the world’s biggest multinational companies is in secret talks with South Australian authorities as a potential white knight to save a world-leading cancer facility from ruin.

One of the world’s biggest multinational companies is in secret talks with South Australian authorities as a potential white knight to save a world-leading cancer facility from ruin.

The $500m Australian Bragg Centre, formerly SAHMRI 2, is under a cloud amid mounting concerns the country’s first proton beam therapy unit is on the brink of financial collapse.

But the South Australian Health and Medical Research Institute – with state government help – has launched exploratory talks with Japanese-headquartered corporation Hitachi as authorities scramble to resolve the crisis.

Senior officials stress, however, efforts are still focused on reviving a $68m contract with Boston-based ProTom International (PTI) to create the southern hemisphere’s first such unit.

The proposed Australian Bragg Centre proton therapy unit spearheaded by the South Australian Health and Medical Research Institute. Picture: SAHMRI.

Treasury officials are gravely concerned the PTI contract, which would help treat more than 700 patients a year – especially children – in a heavily fortified four-storey concrete bunker on North Tce, is at “significant risk” of failure.

The Hitachi talks, which sources close to the project described as contingency planning in its “very early” stages, centre on the Tokyo Stock Exchange listed conglomerate potentially supplying hi-tech equipment.

The Nikkei 225 company, worth an estimated $AUD117bn [$11.42 trillion Yen], is considered a world leader in Particle Therapy cancer treatment since 1994, raising questions as to why an experimental firm was originally chosen.

PTI, which blames Covid-19 and Ukraine war for its financial woes, operates its cutting edge technology only at Massachusetts General Hospital, Boston.

Hitachi, which employs almost 400,000 workers globally, has 11 divisions worldwide in areas including healthcare, home appliances, transport and industrial equipment.

Australian Bragg Centre in Adelaide has already hit taxpayers with an estimated bill topping at least $100m. Picture: Matt Loxton

Officials could not say what the taxpayer exposure would be if the PTI deal collapses and other technology is procured.

The Australian Bragg Centre for Proton Therapy and Research Centre bunker was built specifically for the PTI equipment dimensions.

Taxpayers already face a $100m building bailout.

In response to questions, Treasurer Stephen Mullighan said: “SAHMRI is still engaging with PTI in an effort to have the existing contract met.

“Hitachi is one of a few alternate suppliers of proton therapy systems worldwide, which are also being explored by SAHMRI if PTI is unable to deliver under the existing contract.”

Doctors hail the pioneering technology as a game changer especially for children. Picture: SAHMRI.

The Bragg centre, in the CBD’s northwest $3.6bn biomed city precinct, has already been hit with cost blowouts and delays through a public/private partnership involving SAHMRI, Commercial & General construction firm, taxpayers and Dexus property fund.

PTI, which denies any wrongdoing, has been hit with a “please explain” about its financial affairs after “significant concerns” emerged during US-based crisis talks with SA authorities in late January.

SAHMRI, acting on state Treasury advice, is refusing to pay PTI any more than an almost $45m already paid from the grant.

Mr Mullighan added: “There are only a handful of companies worldwide that produce these systems, including Hitachi.

“ABCPTR is looking at what options are available to successfully deliver this project.

“There is a current contract in place between SAHMRI and ProTom International and the parties are continuing to work through PTI’s ability to deliver the project.”

Treasurer Stephen Mullighan has revealed authorities are gravely concerned at the project being at ‘significant risk’ of failure. Picture: NCA NewsWire / Naomi Jellicoe

MPs are set to quiz SA Health on Friday about its involvement in the crisis.

Neither a SAHMRI spokesman nor a Hitachi spokeswoman would comment.

PTI, which filed for voluntary “chapter 11” bankruptcy in 2015, has not publicly commented.