Local bus manufacturer warns of closure over Chinese exports

Sydney’s only local bus manufacturer has warned it is in danger of shutting its doors because the Minns government buys the bulk of their new electric buses from China.

Sydney’s only local bus manufacturer has warned it is in danger of shutting its doors, should the Minns government continue to buy the bulk of their new electric buses from China.

In a letter sent to Transport Minister John Graham earlier this month, Western Sydney bus manufacturer Custom Denning said the business could be forced to close its doors within weeks after the Minns government decided to procure the bulk of its first tranche of electric buses from China, despite new targets aiming to boost the local manufacturing sector.

The Daily Telegraph revealed in February that more than 200 of the government’s 319 new electric buses would be imported from China and bolted together in NSW.

As a result, the 70-year-old St Mary’s company warned it may have to shut its doors, leaving its 180 workers in limbo. Currently more than 60 per cent of the bus parts it uses are made in Australia with the entire bus assembled from scratch at the St Mary’s factory.

So far the government has indicated it wishes to purchase around 21 per cent of the more than 300 buses off the manufacturer.

Custom Denning Head of Operations Daniel Bale with welder Jake Andrews and apprentice Bowen Pearce at the St Marys factory. Picture Thomas Lisson

Custom Denning’s head of operations Daniel Bale said there had been less locally awarded contracts by the Minns government than previous administrations. This is despite government targets to increase local bus orders to 50 per cent by 2027.

“If the numbers continue in the way they have, we’ll be forced to look at our workforce and make some decisions around that,” Mr Bale said.

“At the continued rate we’d have to cut staff, but if the government chooses not to support us that would mean ceasing operations of the business.”

“We want to be able to promote and sustain an industry in Western Sydney. We all know what’s happened to Holden and we don’t want that to happen here.”

Custom Denning’s head of operations Daniel Bale said there had been fewer locally awarded contracts by the Minns government than previous administrations. Picture Thomas Lisson

It is understood that the government is waiting on the maintenance of more than 20 older Custom Denning buses from its transport fleet.

A spokesperson for Transport Minister John Graham said they were interested in purchasing 95 buses from Custom Denning.

“The last thing the Government wants to see is a local manufacturer struggle,” the spokesperson said.

“Transport officials have met with the company to discuss how to ensure the reliability of the company’s Element 1 buses and its overall viability.

“The Government will continue to work constructively with Custom Denning so that they can become the bus of choice for bus operators across Sydney and the wider state.

Originally published as Local bus manufacturer warns of closure over Chinese exports