The facility will be dedicated to the production of the mechanical power transmission systems and motor control electronic company's latest industrial gear solution "the IGX SEW-Eurodrive X Series" and provide support to SEW's global network of assembly and service centres.

"The new facility will better enable SEW-Eurodrive to provide its individual global assembly and service centres with complete IGX gear units and components," Tribe said.

"The Australian industry will have increased access to short delivery industrial gear units that are effectively tailored to their drive application.

"This development will be of particular significance when SEW-Eurodrive Australia opens its IGX assembly facility in Melbourne in the second half of 2008."

Tribe said the new facility's location next door to the company's development department and headquarters would be a real advantage.

"This will enable tighter integration between SEW-Eurodrive's design and manufacturing facilities and will allow for more efficient information exchange," he said.

The X series features helical and helical-bevel gear technologies that deliver torques from 58,000Nm to 175,000Nm.