Redarc’s $20m investment to follow AMGC-funded ‘smart factory’ rollout

Aussie electronics maker and exporter Redarc says it will invest $20m in 12 months on jobs and ‘co-bots’.

Redarc managing director Anthony Kittel, left, and AMGC managing director Dr Jens Goennemann inspect a ‘collaborative’ robot at the Lonsdale facility. Picture: Brenton Edwards

Aussie electronic systems maker Redarc has unveiled plans to invest $20m in 12 months in its SA operations after securing matched funding from the Federal Government for a separate ‘smart factory’ project.

Redarc makes electronic systems primarily for recreational vehicles, diversifying into the aftermarket requirements for SUVs and the defence sector.

Redarc’s $800,000 project will focus on the improvement of internal processes, people and products at its Lonsdale facility in partnership with some of its key suppliers.

Some of the specific initiatives are introducing ‘co-bot’ protocols, where robots operate safely out of cages and in collaboration with workers, automation of back-end and internal systems, data gathering and analysis for product improvements and R&D as well as training for Redarc’s employees.

The project has received $397,770 from the Federal Government’s Advanced Manufacturing Growth Centre.

Learnings from it will be shared with the sector by the AMGC.

“We are running three shifts and a 24/7 operation now with our sales in the past six months north of 60 per cent,” Redarc managing director Anthony Kittel said.

The business, which has a turnover in excess of $100m and exports to 33 countries, employs 275 people nationally and overseas.

“This project builds on our last capex of $22m which we completed in 2018, after which we doubled jobs.

“With the current business incentives and low rates, we will be investing in order of $20 million in the next 12 months to build on what the smart factory will achieve for us.

“While 35 new jobs linked to smart factory, there will be a lot more once we complete our investment.”

Redarc is highly regarded for its focus on local jobs and investing 15 per cent of its revenue back into R&D annually since 1997, when Mr Kittel bought the business.

It currently has three robotic machines on its manufacturing floor working on mundane, repetitive tasks, and has trained and redeployed workers previously doing those jobs into higher skilled areas.

Redarc was founded in 1979 as a single-product line business and was bought as an eight-person company; it now has 600 product lines with US, Europe and France being its high-demand markets.

The new investment is designed to support the existing business but also support development of new products in hypersonics, electric vehicles and the medical devices industry.

Andrew Rogers, manufacturing engineering manager at Redarc oversaw the 2018 expansion of the business and will be driving the second major round.

“We need to have a nimble, agile and value-driven manufacturing base to be able to sustain that type of business and respond quickly to customer needs,” Mr Rogers said.

AMGC managing director Dr Jens Goennemann said Redarc’s project was one of many taking Australia from “a lucky country to a smart country’.

“As an SME, but with the kind of investments and jobs they have created, are a picture book example of manufacturing we want to see more of.

“Australia has to compete by being better, not cheaper.

“And advanced manufacturing is not about replacing jobs, it’s about creating more.”

”Redarc has shown how it has done both successfully by charging a premium for its higher value products and being smarter about it.”