industry

Kwinana Industrial Area

The Kwinana Industrial Area (KIA) was established in the early 1950s when the Western Australian Government negotiated an agreement with the Anglo Iranian Oil company, now BP Refinery (Kwinana) Pty Ltd, to construct an oil refinery. The agreement was formalized with the signing of the Oil Refinery Act 1952, and the rezoning of about 2,400 ha of coastal land for industrial purposes. This agreement fulfilled a major objective of the Western Australian Government, which was to establish an industrial base for the State's economy.

Over the following years the KIA became the State's primary area of industrial development, with major drivers being its proximity to the sheltered waters of Cockburn Sound, a ready supply of labour from Perth and Fremantle, and a willingness by the Government to develop, a dedicated heavy industrial area.

The industrial development within the Kwinana region consists of a highly diverse range of industries from smaller service industries, such as fabrication and construction facilities, through to very large heavy process industries, such as alumina, nickel and oil refineries.

Download an aerial overview map of the KIA (1MB) (courtesy of the Dept of Industry and Resources)

The 2007 Kwinana Industrial Area Integrated Assessment has demonstrated that the KIA provides a wide range of economic, environmental and social benefits to the local community, wider Western Australia and Australia. In particular, Kwinana industries contribute the following benefits:

Economic Benefits:

  • They are a major driver for the Western Australian economy with an annual output worth $15.77 billion;
  • They link to the energy, minerals and agriculture industries of the state, as suppliers of essential inputs and as value-adding processors of primary outputs;
  • They make a major contribution to Australia's international balance of payments through exports and by production of commodities that would otherwise be imported from overseas. Every time an Australian purchases an imported item, the cost is lower than it would be if Kwinana industries were not here;
  • They generate a much larger amount of employment than their direct employment. This is because of the multiplier effects of their large operational and capital expenditures; and
  • They generate a much larger amount of income than the wages and salaries of their employees. This is because of the multiplier effects of their large operational and capital expenditures, through the distribution of dividends to Australian shareholders and through payment of government taxes.

Social Benefits:

  • There is a high degree of direct employment (4,519 full time jobs and 285 part time jobs); 64% of employees live in the CRKLA area; and significant indirect and induced employment (26,000 jobs);
  • There is a high level of employee support with a range of services, flexible work options and innovative employment benefits provided;
  • There is a large amount of active support, including a high contribution of funding. For local and broader community activities (with at least half of funding spent locally); and
  • Several companies provide active and continuous community consultation processes, contribute to the local community and seek to understand key local community issues and priorities.

Environmental Benefits:

  • The interdependency of Kwinana industries helps provide environmental benefits beyond what is achieved by widely dispersed industries; and
  • Kwinana industries have a high standard of environmental performance in the areas of cleaner production, waste minimisation, energy efficiency, water conservation and noise abatement, which also has significant benefits for the local community.
  • Information taken from the Kwinana Industrial Area Integrated Assessment; Environmental, Social & Economic Impact Study 2007.
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