New Electric Bus Manufacturing Facility to be Built in Nowra

Australia is taking a significant step forward in its transition to zero-emission public transport with the announcement of a new electric bus manufacturing facility in Nowra, New South Wales. The 6,000 square metre factory will be built by Foton Mobility Distribution (FMD), an Australian-owned company led by Neil Wang, the founder of KRW Motor Group. This project marks a major milestone in boosting local manufacturing, creating jobs, and supporting the state’s ambitious Zero Emission Buses (ZEB) program.

A New Hub for Zero-Emission Public Transport

The Nowra factory, subject to council approval, will become a key hub for producing battery electric buses, battery electric trucks, and hydrogen fuel cell engines. With a focus on innovation and sustainability, the facility will employ up to 100 skilled workers and provide a much-needed boost to local manufacturing capacity in NSW.

This announcement follows the Minns Labor Government’s decision to award FMD a contract to supply 126 battery electric buses. These vehicles will be built in Nowra and will operate on bus routes across Greater Sydney. The contract was part of Transport for NSW’s Zero Emission Buses (ZEB) program, which aims to transition the state’s public transport fleet to cleaner, greener alternatives.

The first stage of the ZEB program is already underway, involving the conversion of 11 existing bus depots in Greater Sydney to battery-electric technology. Additionally, the government is constructing a new battery-electric depot at Macquarie Park and plans to procure 1,200 new electric buses by 2028.

Rebuilding Domestic Manufacturing in NSW

For years, NSW relied on offshore manufacturing for its public transport vehicles, leading to job losses, cost blowouts, and lengthy delays. The new Nowra factory signals a shift in approach, with the NSW Government prioritising local manufacturing to create jobs and ensure greater efficiency in public transport projects.

Premier Chris Minns highlighted the importance of bringing bus manufacturing back to Australia, stating:

“The offshoring of public transport by the former government was a complete disaster, which is why we’re building these buses here in NSW – creating local jobs and public transport that works.”

Minister for Transport Jo Haylen echoed this sentiment, noting that the Minns Government is committed to ensuring local businesses have opportunities to be involved in building the state’s zero-emission bus fleet.

“We want our local manufacturers and suppliers to have good opportunities to get involved in building the Zero Emissions Buses that we need. That’s why we have structured our zero-emissions bus program in a way that builds our bus manufacturing capacity for the long term.”

The Future of Clean Transport in NSW

The factory is expected to produce over 400 buses per year, significantly contributing to the state’s transition to zero-emission transport. Additionally, it will play a role in training and upskilling local workers, creating partnerships with TAFE NSW, TAFE Queensland, and other tertiary institutions to provide hands-on experience in zero-emission vehicle manufacturing.

A temporary training facility will be opened as early as May 2025 to start preparing a skilled workforce for the upcoming factory operations.

Neil Wang, CEO of Foton Mobility Distribution, expressed excitement about the project, stating:

“We are very pleased to have been chosen as one of the initial four successful tenderers to supply battery electric buses to Transport for NSW. The initial order for 126 buses was the catalyst for moving forward with plans for the Nowra production facility.”

Beyond manufacturing buses, the facility will contribute to cutting-edge research and development. FMD has collaborated with CSIRO and Federation University to sponsor a PhD program focused on developing hydrogen fuel systems, which could be applied to agricultural machinery such as tractors.

A Win for the South Coast Region

The Nowra facility will be a game changer for the Shoalhaven region, bringing high-quality jobs and economic growth to the South Coast. Member for South Coast Liza Butler praised the initiative, emphasising its role in supporting local employment and skills development.

“The proposed new bus factory here in Nowra will provide fantastic employment opportunities for up to 100 people once fully operational and enable the re-skilling and upskilling of many workers who wish to be a part of the transition to zero-emissions transport.”

The investment is expected to have long-term economic benefits, attracting more businesses and manufacturers to the region.

A Commitment to Local Industry

Minister for Domestic Manufacturing and Government Procurement Courtney Houssos reinforced the government’s commitment to rebuilding local industry, pointing out that previous offshoring policies had cost NSW thousands of jobs and billions of dollars.

“By leveraging the power of government contracts like this, we can rebuild local industries, support local workers, and grow the NSW economy, particularly in regional communities.”

This announcement represents a major step forward in revitalising Australia’s manufacturing sector while simultaneously addressing climate change by producing cleaner public transport solutions.

A Bold Step Toward Net Zero

The establishment of Foton Mobility Distribution’s new electric bus factory in Nowra is a significant win for NSW, combining job creation, local industry support, and environmental benefits. With government backing, local manufacturing expertise, and a clear vision for the future, the project sets the stage for a more sustainable and self-sufficient transport sector.

As NSW moves towards a zero-emission public transport system, the Nowra factory will play a critical role in delivering the next generation of electric buses, ensuring cleaner air, reduced reliance on imports, and a stronger local economy.