The Victorian Government says it is creating a $120 million fund to boost manufacturing. 

The $120 million Victorian Industry Fund announced this week is designed to promote sovereign advanced manufacturing capability and strengthen supply chains, according to the government.

The fund replaces a previous industry fund in its final year of operation.

It will reportedly include $20 million for an equity investment pilot fund to attract companies that “align with Victoria’s strengths”, such as medical technology. Another $40 million will be used to attract international investment.

Additionally, the fund will underwrite a low carbon manufacturing program to support Victorian manufacturers to compete globally for renewable energy components.

The fund is further aimed at developing digital manufacturing with $4.5 million to funds internships.

The state government has also announced measures to support defence manufacturing, with $4.1 million allocated to the Defence Science Institute’s research and development program and a defence manufacturing internship program.