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Released October 01, 2015 | PERTH, AUSTRALIA
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Researched by Industrial Info Resources Australia (Perth, Australia)--On September 14, Malcolm Turnbull successfully led a leadership spill, deposing Tony Abbot in a 54-44 split to become the 29th prime minister of Australia. The development could have an impact on Australia's industries.
Industrial Manufacturing
Christopher Pyne has been sworn in as minister for industry, innovation and science. As a South Australian representative, he will have a keen interest in the AU$50 billion ($35 billion) construction and maintenance of 12 new submarines for the Royal Australian Navy. Additionally, South Australian Labor Premier Jay Weatherill and Independent Senator Nick Xenophon will be putting pressure on Pyne, newly appointed Minister for Defence Marise Payne, and the prime minister to have the project based in South Australia.
The Australian Submarine Corporation (ASC), based in Osbourne, South Australia, likely will be the major engineering, procurement and construction (EPC) services provider if the project goes ahead in South Australia. ThyssenKrupp Marine Systems (Dusseldorf, Germany), naval defense company DCNS (Paris, France) and a consortium of Mitsubishi Heavy Industries (Tokyo, Japan) and Kawasaki Heavy Industries (Tokyo) also have expressed interest in the project's procurement process.
Oil & Gas
The Australian Petroleum Production & Exploration Association (APPEA) has called on the new prime minister to remove unnecessary restrictions and barriers on exploration and development, stating that allowing for greater supply will put downward pressure on prices. Turnbull will be expected to pursue policies to advance shale gas and not to be deterred by the campaigns in the Northern Territory to block shale development and hydraulic fracturing.
As the environment minister under John Howard, Malcolm Turnbull oversaw the final approval of the Chevron Corporation's (NYSE:CVX) (San Ramon, California) Gorgon project in 2007, imposing 36 conditions on the development.
IIR Oceania is tracking 14 active Chevron Gorgon projects worth $46.46 billion (USD).
Metals & Minerals; Power
Newly appointed Minister for Resources, Energy and Northern Australia Josh Frydenberg faces the challenge of managing the portfolio following the collapse of commodity prices and an overall poor climate for industry. Frydenberg is a strong proponent of the Adani Carmichael Coal Mine Project and is expected to continue the Coalition's legacy of support of the coal industry.
IIR Oceania is tracking five Adani Carmichael Mine projects worth $3.21 billion, and an additional 11 Galilee Basin projects worth $3.64 billion.
The Metals & Minerals Industry will be concerned about Turnbull's stance on climate change, having previously struck out with the party's Direct Action Policy over an emissions-trading scheme. Despite his former dissonance on the issue, Turnbull supported the government's climate change policy in his first Parliamentary Question Time appearance as prime minister.
For Australia's Power Industry, the appointment of Frydenberg is significant, given that he is a strong proponent of nuclear power development. In a 2011 article in The Australian, Frydenberg claimed that Australia had a competitive advantage in nuclear power due to its significant uranium reserves, which are estimated at about 1.7 million tonnes (31% world share).
IIR Oceania is tracking 34 uranium mining projects worth $1.76 billion.
Food & Beverage
Key to the Food and Beverage Industry will be Turnbull's ability to pass the China-Australia Free Trade Agreement (ChAFTA). With Australian beef exports to China worth AU$655 million ($460 million), dairy AU$347 million ($244 million); ovine meat AU$425 million ($299 million); grains AU$264 million ($185 million); seafood AU$35 million ($25 million); and live exports AU $206 million ($145 million), the prime minister will be keen to pass the ChAFTA and see exports meet growing Chinese demand.
With a booming Chinese middle class demanding higher-value products, such as value-added Australian dairy powders and meat products, the reduced tariffs in the coming years from the agreement could see dairy, bovine and ovine exports each pass the AU$1 billion ($700 million) mark.
Summary
What can be expected from the new prime minister is a strong focus on technology, advanced manufacturing and innovation. Industries reliant on government support, such as the Automotive Industry and other traditional industries, however, will not likely see any further support under a Turnbull-led Coalition government. In reality, no major imminent changes for industry are likely from the leadership change.
Business confidence has increased since Turnbull won the spill, in line with consumer confidence increasing 8.7%, less than a week after he became leader. Australian industries will be looking to the new prime minister to enact swift liberalizing economic reform to deter the coming resource-driven downturn, but also to maintain the "business-friendly" environmental policies of the Abbot leadership, which the Liberal Party argued had a positive impact on Australia's competitive advantage in the resource and energy sectors.
Industrial Info provides comprehensive information on 12 industrial markets. Information ranges from global activity trends to intelligence about specific capital and maintenance projects, as well as highly detailed plant and unit information. Industrial Info is currently tracking more than 91,000 projects across 12 industry verticals: behind each of these projects sit full scopes and schedules of works and key decision maker contacts.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Manufacturing
Christopher Pyne has been sworn in as minister for industry, innovation and science. As a South Australian representative, he will have a keen interest in the AU$50 billion ($35 billion) construction and maintenance of 12 new submarines for the Royal Australian Navy. Additionally, South Australian Labor Premier Jay Weatherill and Independent Senator Nick Xenophon will be putting pressure on Pyne, newly appointed Minister for Defence Marise Payne, and the prime minister to have the project based in South Australia.
The Australian Submarine Corporation (ASC), based in Osbourne, South Australia, likely will be the major engineering, procurement and construction (EPC) services provider if the project goes ahead in South Australia. ThyssenKrupp Marine Systems (Dusseldorf, Germany), naval defense company DCNS (Paris, France) and a consortium of Mitsubishi Heavy Industries (Tokyo, Japan) and Kawasaki Heavy Industries (Tokyo) also have expressed interest in the project's procurement process.
Oil & Gas
The Australian Petroleum Production & Exploration Association (APPEA) has called on the new prime minister to remove unnecessary restrictions and barriers on exploration and development, stating that allowing for greater supply will put downward pressure on prices. Turnbull will be expected to pursue policies to advance shale gas and not to be deterred by the campaigns in the Northern Territory to block shale development and hydraulic fracturing.
As the environment minister under John Howard, Malcolm Turnbull oversaw the final approval of the Chevron Corporation's (NYSE:CVX) (San Ramon, California) Gorgon project in 2007, imposing 36 conditions on the development.
IIR Oceania is tracking 14 active Chevron Gorgon projects worth $46.46 billion (USD).
Metals & Minerals; Power
Newly appointed Minister for Resources, Energy and Northern Australia Josh Frydenberg faces the challenge of managing the portfolio following the collapse of commodity prices and an overall poor climate for industry. Frydenberg is a strong proponent of the Adani Carmichael Coal Mine Project and is expected to continue the Coalition's legacy of support of the coal industry.
IIR Oceania is tracking five Adani Carmichael Mine projects worth $3.21 billion, and an additional 11 Galilee Basin projects worth $3.64 billion.
The Metals & Minerals Industry will be concerned about Turnbull's stance on climate change, having previously struck out with the party's Direct Action Policy over an emissions-trading scheme. Despite his former dissonance on the issue, Turnbull supported the government's climate change policy in his first Parliamentary Question Time appearance as prime minister.
For Australia's Power Industry, the appointment of Frydenberg is significant, given that he is a strong proponent of nuclear power development. In a 2011 article in The Australian, Frydenberg claimed that Australia had a competitive advantage in nuclear power due to its significant uranium reserves, which are estimated at about 1.7 million tonnes (31% world share).
IIR Oceania is tracking 34 uranium mining projects worth $1.76 billion.
Food & Beverage
Key to the Food and Beverage Industry will be Turnbull's ability to pass the China-Australia Free Trade Agreement (ChAFTA). With Australian beef exports to China worth AU$655 million ($460 million), dairy AU$347 million ($244 million); ovine meat AU$425 million ($299 million); grains AU$264 million ($185 million); seafood AU$35 million ($25 million); and live exports AU $206 million ($145 million), the prime minister will be keen to pass the ChAFTA and see exports meet growing Chinese demand.
With a booming Chinese middle class demanding higher-value products, such as value-added Australian dairy powders and meat products, the reduced tariffs in the coming years from the agreement could see dairy, bovine and ovine exports each pass the AU$1 billion ($700 million) mark.
Summary
What can be expected from the new prime minister is a strong focus on technology, advanced manufacturing and innovation. Industries reliant on government support, such as the Automotive Industry and other traditional industries, however, will not likely see any further support under a Turnbull-led Coalition government. In reality, no major imminent changes for industry are likely from the leadership change.
Business confidence has increased since Turnbull won the spill, in line with consumer confidence increasing 8.7%, less than a week after he became leader. Australian industries will be looking to the new prime minister to enact swift liberalizing economic reform to deter the coming resource-driven downturn, but also to maintain the "business-friendly" environmental policies of the Abbot leadership, which the Liberal Party argued had a positive impact on Australia's competitive advantage in the resource and energy sectors.
Industrial Info provides comprehensive information on 12 industrial markets. Information ranges from global activity trends to intelligence about specific capital and maintenance projects, as well as highly detailed plant and unit information. Industrial Info is currently tracking more than 91,000 projects across 12 industry verticals: behind each of these projects sit full scopes and schedules of works and key decision maker contacts.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
