BENDIGO'S manufacturing industry remains strong despite Australia's COVID-19 induced economic downturn, industry figures report.
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It comes as defence manufacturer Thales announced it would double the rate of Hawkei production at its Bendigo facility.
This will directly create 17 jobs.
Bendigo Manufacturing Group chair Mark Brennan, who heads Thales's local plant, said manufacturing had remained strong across the business sector.
He said members of the group had increased production and expanded on export opportunities, despite the COVID-19 crisis.
Mr Brennan said businesses did have the challenge of managing social distancing.
He said the Thales news was good from the group's perspective, creating jobs for local people.
"Any job increase is positive. That's a great thing, especially in this environment where people are actually not able to work in their current industries," Mr Brennan said.
"Manufacturing provides an opportunity and a career path."
Defence Industry Minister Melissa Price said the Thales work provided confidence for 20 small to medium Australian companies involved in the Hawkei supply chain.
Be.Bendigo chair Dennis Bice said Bendigo was fortunate to have diverse industry and employment opportunities.
He said this meant the city was not reliant on one single industry to keep its economy going.
Mr Bice said manufacturing was a key industry in Bendigo.
But Mr Bice said Bendigo's hospitality, retail and travel industries had all been "smashed" by the coronavirus crisis.
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