The Australian Federal Government has created a subsidy programme so around 600 workers made redundant at Ford's engine production factory west of Melbourne can re-enter the workforce.
The automobile company's Geelong engine plant will close by 2010.
Other companies in the area will be offered subsidies to helpabsorb the displaced Ford workers.
An A$24 million fund has been set up to attract new investment to Geelong.
The Federal Industry Minister, Ian Macfarlane, says the government is prepared to pay half the set up cost for firms prepared to relocate to the area.
"There is already a strong base in aerospace tourism aquaculture and metals and textiles," he said.
"Any industry that needs a base of skilled labour could come to Geelong, so in fact we could see the industrial base of Geelong changed in a positive way," Mr Macfarlane said.
He says local interest in the fund has already been reported by its chairman, David Morgan.
"He's well known locally, he's the chancellor of the University but also a previous president of Ford, he's also been involved in a number of commerce groups within Geelong and his report back to me is that there is very strong interest in this fund," Mr Macfarlane said.
