The Melbourne-based automotive and defence manufacturer, Abcor, has officially unveiled its new facility providing a strong boost for Victoria's manufacturing industry.

The A$15 million facility, located in Campbellfield (25 minutes north of the city centre) will operate in conjunction with the company's existing facilities and manufacture more than 12,000 steel bull bars and other car parts for Japanese car company, Toyota.

Victorian Industry Minister, Lily D'Ambrosio, who attended the official opening ceremony of the new plant in Melbourne's north, said the establishment of a new manufacturing plant was "great news" for Victoria.

"Abcor's success is testament to the company's world class engineering and design capabilities, and a welcome development for the local manufacturing sector and the broader economy," she said.

Abcor's Director John Kaias said the new purpose-built facility features highly specialised manufacturing and assembly line equipment valued in excess of $5 million.

"Abcor has a highly talented engineering and design team with a strong understanding of vehicle dynamics and Australian design rules which has been instrumental in the company securing this contract with Toyota," Mr Kaias said.

Toyota Australia President, Mr Dave Buttner, said he was delighted with the business partnership between the two companies and Abcor's commitment to world-class design and manufacturing in Australia.

Abcor was established in 1971 and has since grown into a company with an annual turnover of more than $80 million across automotive, truck and defence divisions that work closely with international brands.

The new facility fits well within Victoria's automotive manufacturing industry, which has a long and evolving history of innovation and collaboration.  Victoria is also Australia's leading centre of automotive research and development with prestigious institutions such as: RMIT, Monash, Swinburne and Deakin Universities.