Perth could become a major aerospace repair centre for the South Pacific region.
Deputy Premier and State Development Minister Ian Taylor told the `Into Asia Conference' in Perth today he had signed a memorandum of understanding between the State Government and one of the biggest companies in the world - United Technologies Corporation - and Western Aerospace for a feasibility study into the proposal.
"The study is a demonstration of the way the Government is prepared to work with overseas companies in a bid to attract their operations to Western Australia," Mr Taylor told the conference delegates.
"The feasibility study follows the location here in Western Australia of the super alloy plant by United Technologies, Pratt & Whitney, Wyman Gordon and Western Aerospace.
"These organisations appreciate the strategic location of WA and the State Government is confident that, as with the super alloy plant, the State will be successful in securing the aerospace component repair centre."
Mr Taylor said the centre would cost about $40 million and provide approximately 250 jobs.
The component repair centre would serve the total South East Asia/Pacific region, ranging from the People's Republic of China (PRC)/Taiwan south to Australia and from Pakistan to New Zealand/Pacific Islands.
The study would evaluate economic factors including labour costs and stability, incentives and infrastructure along with proximity and compatibility to markets.
It would also look at United Technologies Corporation benefits such as engine market leverage and offsets.
If established, it was expected the centre could repair a number of components including compressor stators, electronic engine controls, environmental control systems, propellers and spare part distribution.
The study would also evaluate other possible sites, including the eastern states.
"This agreement is the result of negotiations started with the Government last year," Mr Taylor said.
"The State Government has agreed to support the study by providing office and secretarial support for its duration."