Industrial Equipment Company Ltd (BICO) has secured a $1.3bn guarantee from the Commonwealth government to build a $2bn manufacturing facility in Queensland.
The guarantee comes after BICO said last month it was planning to close its Tasmanian factory at the end of the year.
“We have been working hard to deliver this facility to our customers,” Mr Abbott said.
“It’s going to provide jobs and economic growth in Queensland, Australia.”
“It will be the biggest investment in Australia’s industrial sector in more than 100 years.”
BICOs Tasmania facility is the largest in the world, with a workforce of 3,500 people and producing around 200 million parts annually.
Construction is expected to begin in the second quarter of 2018 and is expected the factory will be operational by 2022.
BICOL has been struggling to compete with the likes of Kmart, Home Depot and Lowe’s.
The company has been on the back foot for years as it tried to find new ways to compete in a market where companies such as Amazon and Alibaba dominate.
The deal will give BICCO more than $1 billion in funding, and it will receive $400m in cash over the life of the project.
Construction to start in the first quarter of 2019, with the facility to be operational in 2022.
The Government has committed $2.4bn in additional funding to support the sector, including $200m in new infrastructure funding.
The money will help BICOC secure the project and ensure the future of the factory, which has struggled with delays in its expansion plans.
The Australian Manufacturing Workers Union has called for the factory to be closed.
“The BIC operations at Hobart will cease, with no meaningful jobs created and no meaningful growth in the business,” the union said.
BICS Tasmania facility has been hit by a number of delays.
It has been under construction since the mid-1980s and the state government has not been able to secure funding for the project for the past decade.
The state government in the early 2000s had hoped to build the facility as part of the $20bn “Northern Gateway” project, but was forced to backtrack after concerns over environmental impact.
The State Government is committed to a long-term plan to build an integrated, sustainable, high-quality, high quality, manufacturing sector.
The facility is scheduled to be completed by 2021, and the construction could be completed as early as 2022.
Work has already begun on the project in Hobart, and construction will continue throughout the year, with workers expected to be employed at the Hobart site for around 40 years.