Australian bus manufacturer BusTech Group has entered into voluntary administration, with the future of the company left unknown.
With operations in Queensland and South Australia, BusTech is one of the largest independent bus manufacturers in Australia, making diesel, hybrid and zero emission buses. It has more 270 employees across its two companies.
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Despite the uncertainty, BusTech’s recent $11.75 million state contract to supply vehicle bodies in South Australia appears to be going ahead.
South Australia Transport Minister Tom Koutsantonis says Scania, who subcontracted BusTech for the work, reported it does not have concerns about meeting the targets of the contract.
“BusTech is continuing to operate while under voluntary administration, and existing production targets remain on track,” Koutsantonis told FIVEaa radio.
“However, the responsibility for meeting contractual obligations with the state government ultimately rests with Scania.
“The state government has provided what assistance we can to BusTech within existing contractual mechanisms for an extended period of time.
“In terms of state government money, it’s all secure, the buses we’ve got being made are all secure, but we really want BusTech to survive because they do exceptional work.
“We’re hoping they can trade out of this. We’re with them, we’re going to be making sure our contracts remain in place, but in the end they’ve done some arrangements in other states where they’ve got some serious liabilities and that might be what pushes them over the edge.”
A first meeting with BusTech creditors will be held on August 22.
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