Adelaide bus manufacturer hits roadblock

A northern suburbs firm contracted to deliver new school buses for the state government has gone into voluntary administration.

Aug 14, 2024, updated Nov 03, 2024
BusTech delivered two hybrid-electric buses for the O-Bahn network in 2020. Photo: BusTech
BusTech delivered two hybrid-electric buses for the O-Bahn network in 2020. Photo: BusTech

Edinburgh-based BusTech SA, together with its Queensland counterpart, appointed a voluntary administrator on August 12.

BusTech SA was party to an $11.75 million state government contract announced in January, in which it would supply vehicle bodies, with Scania to build the chassis.

Transport Minister Tom Koutsantonis said he was concerned about BusTech’s situation.

“I’m very concerned about some of their interstate liabilities that they have, that they’ll have to honour,” he said on FIVEaa this morning.

Koutsantonis said the government’s contract was with Scania, which then subcontracted to BusTech after the government required a local manufacturer.

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

“However, the responsibility for meeting contractual obligations with the state government ultimately rests with Scania. The state government has provided what assistance we can to BusTech within existing contractual mechanisms for an extended period of time.”

Koutsantonis said buses under the contract would still be provided.

“In terms of State Government money it’s all secure, the buses we’ve got being made are all secure, but we really want BusTech to survive because they do exceptional work,” he said.

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“We’re hoping that they can trade out of this. We’re with them, we’re going to be making sure that our contracts remain in place but in the end they’ve done some arrangements in other states where they’ve got some serious liabilities and that might be what pushes them over the edge.”

BusTech employs around 270 people nationwide, with reports its Adelaide branch employs 100 staff.

The BusTech Group is 100 per cent owned by Fusion Capital, an Adelaide-based private equity group.

Based in Queensland, South Australia and Tasmania, BusTech says on its website that it has plans to open new “micro factories” in NSW and Victoria.

Ben Verney of Melbourne-based GreyHouse Partners has been appointed administrator of BusTech SA and QLD. InDaily attempted to contact Verney for comment.

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