Adelaide-based bus company BusTech placed in administration

Adelaide bus manufacturer BusTech has been placed in voluntary administration, putting jobs at risk and jeopardising the state government’s attempts to renew its ageing fleet.

The state government’s plans to renew its ageing fleet with more energy-efficient vehicles are now at risk.

Adelaide-based bus manufacturer BusTech has been placed in voluntary administration, putting more than 100 jobs at risk, as well as the state government’s plans to renew its ageing fleet with more energy-efficient vehicles.

Administrators Greyhouse Partners were appointed as voluntary administrators on Monday and said the company, which has manufacturing bases at Edinburgh in South Australia, as well as in Queensland, would continue to trade.

Voluntary administrator Ben Verney said the company employed more than 100 staff across its manufacturing sites and was Australia’s second-largest independent bus manufacturer, constructing “diesel, hybrid and zero emission technology buses for the urban route and school markets’’.

“The administrator is looking for funding support from key stakeholders including customers and landlords, to enable the companies to continue trading throughout the administration period,’’ Mr Verney said.

“During this time, options for a sale of business or restructure via a deed of company arrangement will be explored and considered.’’

He said a creditors’ report would be issued in around four weeks and a creditors’ meeting would be held on August 22.

The company is owned by Fusion Capital, the company behind building a supercar in Adelaide and was formerly known as Brabham Automotive.

In January, the state government announced an $11.8 million contract with BusTech to manufacture 16 hybrid buses on chassis supplied by Swedish company Scania. At the time the state government said the new buses would be rolled out over the three years and would run on new routes servicing schools including Morialta Secondary College, Riverbanks College and Aldinga Payinthi College.

In January, Adelaide Metro also announced it was expanding services to the Adelaide Hills as part of a $19 million election commitment to deliver 15 new hybrid-diesel buses.

The previous Liberal government signed a contract for 350 buses to be delivered by 2029, of which 100 have been delivered so far with another 20 in production.

Transport Minister Tom Koutsantonis said on Tuesday it was “always disappointing to see a local business in this situation’’.

“BusTech is continuing to operate while under voluntary administration, and existing production targets remain on track,’’ Mr Koutsantonis said.

“However, the responsibility for meeting contractual obligations with the State Government ultimately rests with Scania.’’

Scania was contacted for comment.

Originally published as Adelaide-based bus company BusTech placed in administration