THE Federal Government is contributing $1 million towards a poly pipe factory earmarked for Tocumwal.
The money will help Poly Transport Systems which is set to build a $14 million factory in the town which would employ 40 people.
It is Australia's first plant that will produced recycled high-density polyethylene extruded pipe.
The Environment Minister Sussan Ley said taxpayer funding was being contributed on the basis of water saving benefits through replacement of open concrete channels.
"With potential for 70 per cent of the finished product from recycled material, it will not only save farmers money but also helps protect the environment by reusing plastic waste," Ms Ley said.
"When the project gets underway we're expecting 31 jobs on construction, ongoing employment for around 40 people and a multiplier effect of another 120 jobs, so it's a massive boost to employment in Berrigan Shire."
Shire mayor Matt Hannan said a site at the Tocumwal aerodrome owned by the council and another private property were in contention to host the factory.
"Forty jobs is not insignificant, it's a really welcome amount of new jobs for the area going forward,": Cr Hannan said.
Poly Transport Systems director Chris Dow, who was overseas and unable to speak to The Border Mail, spruiked the benefits of the investment in a media release issued by Ms Ley.
"The Murray Darling region is under immense pressure for water," Mr Dow said.
"This project will enable the replacement of significant sections of piping helping farmers save up to 25% lost through current open channel irrigation systems or poorly maintained infrastructure."
The funding came through the government's Manufacturing Modernisation Fund which also saw money go towards assisting in the creation of dentures, noodle crackers and tortillas.
There was also $937,225 provided to Batlow Apples to go towards a $3,748,900 million factory upgrade to assist in the production of Batlow Happles, dried apple snacks.
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