MEDIA RELEASE THE DEPUTY PRIME MINISTER AND MINISTER FOR TRADE

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11 September 1997

MELBOURNE COMPANY SIGNS LUCRATIVE CONTRACT WITH MERCEDES

The Deputy Prime Minister and Minister for Trade, Tim Fischer today congratulated Melbourne company Suspension Components Australia (SCA), which has won a second major contract to supply stabiliser bars to prestigious motoring company, Mercedes Benz.

In 1995 Austrade Frankfurt assisted SCA in winning a major export contract with Mercedes Benz to supply stabiliser bars for their prestigious new sports car, the Mercedes SLK, which was launched at the end of 1996. The new contract is to supply stabiliser bars for a new model which is to be launched towards the year 2000.

"This is a tremendous achievement for an Australian company, especially to be selected by such a discerning company of the calibre of Mercedes Benz," said the Minister for Trade, Tim Fischer.

"The first contract was won against fierce competition from both German and overseas suppliers. It was a rare occurrence for an Australian supplier to be awarded the contract as most German car companies prefer to deal with suppliers closer to home."

"The fact that SCA and Mercedes have just signed a second agreement proves the high quality of the product," he added. "As a result of the new contract, SCA will increase their production output and therefore will need to employ more staff." SCA currently employ 130 persons.

Austrade Frankfurt began promoting the Australian automotive industry more than five years ago but, in October, 1995, activities were intensified and the German Automotive Representation, or GAR, programme was set up. Its aim is to help Australian automotive component suppliers to get a foot in the door of Germany's seven car manufacturers. SCA as a participant of this programme made extensive use of Austrade's services in order to win the two contracts with Mercedes.

"Austrade, as the local representative for the Australian company in Frankfurt, provides everything from the initial contact to the back up support and on-going communication with the German customers " said Mr Fischer. "The programme is showing great results for Australian suppliers as other manufacturers have expressed interest in dealing with Australian suppliers, in particular the VW Group which sent a delegation to Australia earlier this year."

Canberra, 11/09/97

For further information, please contact Mary Rose Trainor, Media Relations, Austrade on (02) 9390 2735 or email maryrose.trainor@austrade.gov.au