‘Fantastic future’: Mining billionaire Andrew Forrest backs Australian manufacturing
Mining magnate Andrew Forrest has declared Australia has a “fantastic” future in manufacturing, but must avoid trying to compete with industrial powers such as China and the US to win over what he calls “legacy industries”.
Mr Forrest, the billionaire founder of iron ore giant Fortescue, struck an optimistic outlook on Monday as he opened a dramatic expansion of the RM Williams manufacturing facility north of Adelaide.
“I’m telling everyone out there to buy Australian Made,” he said on Monday as hundreds of workers at his Salisbury factory assembled the boots, belts, trousers and purses that have become iconic components of the country’s fashion landscape and export sector.
“Politicians and business leaders, let’s be smart about this. Play to Australia’s strengths. We don’t have to go against where other countries are clearly stealing the market. What we can go after in Australia is where we can and should do better. I’m very proud to be the owner of RM Williams.”
Mr Forrest took control of the legendary 93-year-old Australian clothing brand through private investment group Tattarang in 2020.
The new workshop, called Bushman’s Base, adds 20,000 sq m to RM Williams’ production and distribution footprint in the city, bringing its total footprint to 29,500 sq m – twice the size of Adelaide Oval.
Mr Forrest said he “absolutely” wanted to expand production further and take the business “forward”.
“Not everyone wants to be a mathematician or an artificial intelligence expert,” he said.
“People really love working with their hands. They love creating and seeing the results of their work, and that’s RM Williams.”
However, he warned against sustaining traditional industries such as car making and suggested governments were “underestimating the Australian people” in supporting struggling or failing businesses such as the Mount Isa smelter in Queensland and the Port Pirie smelter in South Australia.
Mining magnate Andrew Forrest tours the expanded RM Williams facility in Adelaide.
“We are a forward-looking nation,” he said.
“I tend to really support new industries… We’re ingenious, we’re creative, we can compete with the best in the world, but let’s go after the areas we’re best at. And let’s not just try to support the old industries.”
The state and federal governments will provide $600 million to keep mining giant Glencore’s copper smelter operating in Queensland and $135 million for Nyrstar’s smelter operations in Port Pirie and Tasmania.
The country’s manufacturing sector is struggling with high energy prices compared to rival countries such as the United States, but Mr Forrest said the country was at a “transition point” where traditional energy systems such as coal and gas are being replaced by 24/7 renewable energy.
“Renewable energy is about to become 24/7 green energy,” he said.
“They operate like a nuclear or coal-fired power plant. Whining about needing more gas was just yesterday…like burning sticks and logs.”
In a separate question, Mr. Forrest ignored the significance of the $13.5 billion critical minerals deal struck between Anthony Albanese and President Trump in Washington, D.C., last week.
“I don’t see anything that critical about critical minerals,” he said.
“I don’t see anything rare in rare earths. We have small oceans.”
