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Shock Manufacturing News

With the Federal Government announcing major incentives to grow local manufacturing as part of the budget, the announcement that one of Australia’s biggest success stories is moving off-shore has shocked everyone.

The hugely successful and Aussie proud - Koala - will move the production of their popular mattresses overseas in a major blow to jobs and investment.

The big names in Aussie business have expressed disappointment at the decision with Harvey Norman boss Gerry Harvey calling out the local company for abandoning Australia.

"Anyone selling imported mattresses are doing it because they can make more money," Harvey told The Australian newspaper on Monday.

Only one of its entire product range – an office desk – will now be made in Melbourne.

As of yesterday Koala still had the fact their products are Australian Made on the home page of their online store. 

In a statement, Koala said the move is part of a strategy to grow their market in Asia. "The decision to cease production of mattresses in Australia will provide significant innovation and quality improvements to help drive our continued growth across Asia-Pacific," a spokesperson said.

Koala's move overseas comes as the Federal Government last week announced a $1.3 billion Modern Manufacturing Initiative that will see the Government invest in local manufacturing to create much-needed jobs.any.

Koala's move overseas comes as the Federal Government last week announced a $1.3 billion Modern Manufacturing Initiative that will see the Government invest in local manufacturing to create much needed jobs.

The initiative is an important part of the Government's Covid-19 recovery plan as we come out of the pandemic.

"We are putting our money where our mouth is, to galvanise investment in Australian manufacturing," The Minister for Industry, Science and Technology, Karen Andrews, said. 

The Government manufacturing plans and the budget overall were endorsed by the powerful The Australian Industry Group (Ai Group). 

"A stronger economy, with higher productivity, greater opportunities for employment and renewed business and consumer confidence are prerequisites for a return to widespread incomes growth in Australia" said Ai Group Chief Executive Officer Innes Willox.

“Buy Aussie Now” continue to lead the push to support Aussie made businesses to keep jobs and investment here in Australia with close to 7000 businesses signed up to showcase their products ahead of the live date to shop in a few weeks.

“There has never been a more important time to support our friends, family who have local businesses. Small businesses create half of all jobs in Australia and this is crucial to our recovery,” said Buy Aussie Now CEO Chris White.

Buy Aussie Now also plans to introduce its own “tick of approval” in coming months which will be a free offering for registered businesses to showcase their Aussie credentials and help shoppers to choose local.


Media and journalism has been in Luke Dennehy's blood ever since he started at the Herald Sun in Melbourne as an editorial assistant at 19 years of age. Luke worked for nearly 20 years at the Herald Sun reporting entertainment and lifestyle news before leaving in 2017 to pursue freelance opportunities. He also had many regular spots on radio and TV over the years, most recently on Melbourne radio station 3AW.  A passionate advocate for Australian music, food, entertainment and business, he is excited to share some of those inspiring stories along the way.


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