More iron ore railcars destined for West Australian mines will be manufactured in the state over the next four years, in a move experts have called an "industry first".
Mining giant BHP has committed to building 140 "flat-pack" iron ore railcars locally, in conjunction with engineering firm UGL and QRRS, and with financial support from the state government.
BHP typically orders "several hundred" rail cars from overseas manufacturers each year but a pilot program has seen five built in Australia so far, with another 15 due by February 2023.
The rail cars, which will be used in BHP's Pilbara mines, will be constructed by UGL in Bassendean from parts made by QRRS in China.
Premier Mark McGowan called the project an "industry-first initiative" that followed research into reviving the state's manufacturing industry.
"The key findings of the full feasibility study show that we have the capability and expertise right here in WA to manufacture iron ore rail car wagons and components," he said.
"Making wagons locally is not only a job creator, it's about supporting our WA businesses and ensures we continue to keep a long-term pipeline of work.
"It will also reduce our reliance on overseas suppliers and lower risks associated with global supply chains."
BHP Western Australia iron ore asset president Brandon Craig said the investment would support more Western Australian workers.
"Through this investment we will support the WA manufacturing sector to strengthen its capability and create new opportunities for business growth and local employment," he said.
The announcement follows Rio Tinto's commitment to purchase 100 Australia-made railcars for its Pilbara iron ore mine in October last year.
The Australian Manufacturing Workers' Union welcomed the announcement on Wednesday, with state secretary Steve McCartney saying the financial commitment would help create "long-term, stable and permanent jobs" in the industry.
"This is a big step forward for West Australian workers and jobs," he said.
"BHP has had a strong start to the financial year, thanks largely to its Western Australian assets. This sends a strong message that local manufacturing should happen in WA."
