Australian manufacturers will receive $48.3 million in federal funding to modernise their operations and create 2,600 new jobs in the face of the coronavirus pandemic.
About 200 projects worth more than $215 million will be supported through the Manufacturing Modernisation Fund, under a merit-based grants scheme to be divided between large and small scale projects.
The federal government is contributing $48.3 million, it announced on Thursday.
Minister for Industry, Science and Technology Karen Andrews said the job-creating investments couldn't come at a better time, as the manufacturing sector grapples with COVID-19.
"The federal government is committed to helping Australian manufacturers prepare for the future and to employ more Australians. More than 2,600 new jobs are expected to be created by these successful projects," Ms Andrews said.
"We established the MMF before the coronavirus pandemic to help small and medium sized manufacturers invest in capital equipment and new technologies to transform and upgrade their manufacturing operations.
"As we face the coronavirus pandemic and look to come out the other side stronger, this investment will be more critical than ever."
Grants totalling $35 million will go to 59 companies for large scale projects worth over $177 million, with a further $13.3 million going to 141 small scale projects worth over $38 million.
Among those being supported will be a new production line bringing back the Aussie chocolate bar the Polly Waffle in South Australia, expected to create 38 jobs.