A company due to build a $700 million electric vehicle manufacturing plant in the New South Wales Southern Highlands has blamed failed talks with the state government for its decision to scrap the plans.
In 2020, Nexport announced it would build the factory on 51 hectares of land at Moss Vale to electrify the state's fleet of 8,000 buses.
But this week, two industrially zoned blocks on Douglas and Berrima Roads, slated for the development, were put up for sale.
In a statement, the company said it had not been able to secure any certainty from the state government about the project and would instead move its operation to a smaller facility at Bankstown.
"We were highly committed to the development of the land at Moss Vale and the opportunities this presented to our company and the broader community," a Nexport spokesperson said.
"As such, we have opted to secure a smaller ready-made facility in Bankstown and are looking to diversify our manufacturing portfolio across Australia … to provide job security for our people."
'It was a game changer'
Suspended Wingecarribee Councillor Ian Scandrett said the company's decision was a blow for the local economy as it was expected to create more than 2,000 jobs.
"This was going to be fantastic … it was going to have a focus on young people, there was a commitment to Indigenous employment as well," Mr Scandrett said.
"It would have brought benefits not only for us but for the state."
Mr Scandrett vowed to fight the company's decision.
"This is such an important thing for the Southern Highlands and for youth, and our general economic development."
Contract announced
On Monday, the New South Wales government announced it had awarded a contract to design, manufacture, and assemble 79 new electric buses to Western Sydney-based company Custom Denning.
The company employs 160 workers at its factory in St Marys.
At the time, Premier Dominic Perrottet said the $70 million investment would help transition the state's bus fleet to zero-emissions technology.
The Minister for Transport, David Elliott, said the contract would also help with the state's "post-pandemic jobs recovery".
