Leading cyber security company, VeroGuard Systems, is building a major advanced manufacturing facility in Northern Adelaide in a project which will create nearly 600 new jobs in its first three years.

The $57.5 million investment will see the company establish an Advanced Manufacturing Centre to securely produce its VeroCard technology.

The company intends to recruit 424 of the 596 required employees from the Northern Adelaide region, providing opportunities for former automotive workers and the currently unemployed.

VeroGuard Systems is a Melbourne-based cyber security company that specialises in identity and access management technology. The company’s technology integrates military grade security and encryption with banking grade ‘black-box’ technology, with their products being sold to governments and private companies across the world.

VeroGuard’s “card-present” digital technology approach introduces a secure identity layer to the internet providing a level of security that does not currently exist. This is a revolution in securing online identities for both industry and the consumer.

The company is building a research relationship with the University of Adelaide including curriculum to ensure a pipeline of graduates for ongoing employment.

Chairman of VeroGuard Systems Daniel Elbaum said South Australia has been widely promoted as encouraging for business investment, leading technology solutions, and provides the population density and workforce to enable the high-tech manufacturing and cyber knowledge required.

“Veroguard Systems plans include setting up their manufacturing and operational centre for its global operations within the next six months to deliver their first projects. It is expected that 600 jobs will be created within three years in new cyber security and digital identity technologies, substantially boosting the credibility and profile of South Australia internationally,” Mr Elbaum said.

“This could be the tip of the iceberg for jobs with large global companies already in discussion with Veroguard Systems also. It’s great to kick off here in South Australia unlike so many other Australian companies who have had to go offshore first to gain backing for their technology.”

More recently, VeroGuard developed a formal partnership with local Adelaide company, LVX Group, which would now see the project’s employment numbers increase dramatically – potentially up to another 1500 workers.

Under the plan VeroGuard’s identity, cyber security and integration platform would be included in LVX’s smart building/city Internet of Things (IoT) projects. Connection to the internet naturally comes with security risks. LVX managing director Corey Gray said the partnership sought to address these.

“The endgame of Smart City/IoT is that all of a city’s ‘machine’ assets, (devices), are IoT enabled and intelligent,” he said. “The catastrophic risk in all of this is that a hacker can no longer just steal identities and money, but hack a Smart City System, disable CCTV, turn all traffic signals to green, turn out the street lights and hijack driverless vehicles.”

VeroGuard Co-chief Executive, Nic Nuske, said the company had not anticipated focusing on the Internet of Things until 2020: “The opportunity to partner with LVX is such a great option for us that we are accelerating our plans in this rapidly growing, high-value part of the market.”

VeroGuard Co-chief Executive, Daniel Elbaum, said: “Demand for secure interoperable platforms for Smart Cities will also have a significant impact to the volumes of people we will need to manufacture and support our solutions in South Australia. This could be as much as three to five times our existing plans.”