BEIJING, Jan. 1, 2026 /PRNewswire/ — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), (“Baidu” or the “Company”), a leading AI company with strong Internet foundation, today announced its proposed spinoff and separate listing of the H shares of Kunlunxin (Beijing) Technology Co., Ltd. (“Kunlunxin”), a non-wholly owned subsidiary of the Company, on the Main Board of the Hong Kong Stock Exchange (the “Proposed Spin-off”). The Proposed Spin-off aims to independently showcase Kunlunxin’s value, attract investors focused on the AI chip sector, and leverage its standalone listing to enhance its market profile, broaden financing channels, and better align management accountability with performance. This also supports the effort to unlock the value of Baidu’s AI-powered businesses.
A listing application form has been submitted to the Hong Kong Stock Exchange (the “HKEX”) on a confidential basis to apply for the listing of, and permission to deal in, the H shares of Kunlunxin on the HKEX. Following completion of the Proposed Spin-off, it is expected that Kunlunxin will remain as a subsidiary of the Company.
Details of the Proposed Spin-off have not yet been finalized. The Proposed Spin-off is subject to, among others, the obtaining of approvals from the HKEX, the completion of the filing with the China Securities Regulatory Commission, and the final decisions of the Company and Kunlunxin. There is no assurance that the Proposed Spin-off will take place or when it may take place.
This announcement shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, in the United States or elsewhere, and shall not constitute an offer, solicitation or sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
About Baidu
Founded in 2000, Baidu’s mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under “BIDU” and HKEX under “9888”. One Baidu ADS represents eight Class A ordinary shares.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in announcements made on the website of the Hong Kong Stock Exchange, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu’s growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company’s revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and other documents filed with the SEC, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this announcement is as of the date of the announcement, and Baidu undertakes no duty to update such information, except as required under applicable law.
2 January 2026. Based on advance estimates, the Singapore economy expanded by 5.7 per cent on a year-on-year basis in the fourth quarter of 2025, faster than the 4.3 per cent growth in the previous quarter. On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 1.9 per cent, easing from the 2.4 per cent expansion in the third quarter. For the whole of 2025, the economy expanded by 4.8 per cent, extending the 4.4 per cent growth in 2024.
Sectoral Performance in the Fourth Quarter of 2025
The manufacturing sector posted strong growth of 15.0 per cent on a year-on-year basis in the fourth quarter of 2025, accelerating from the 4.9 per cent expansion in the previous quarter. Growth during the quarter was largely driven by output expansions in the biomedical manufacturing and electronics clusters. The former was primarily supported by robust output growth in the pharmaceuticals segment, while the latter was bolstered by sustained demand for AI-related semiconductors, servers and server-related products. On a quarter-on-quarter seasonally-adjusted basis, the sector grew by 9.2 per cent, extending the 11.1 per cent expansion in the third quarter.
An extra £2m has been allocated to help Welsh tourism and hospitality businesses install weatherproofing measures.
The Year of Croeso Weatherproofing Fund received nearly 400 applications from businesses seeking grants between £5,000 and £20,000. The original £1.75m budget has been increased to meet overwhelming demand.
The scheme supports micro, small and medium size businesses employing between 1- 250 people. Successful applicants will receive grants covering up to 75% of project costs.
Visit Wales research in 2024 found that 55% of tourism businesses cited poor weather as the main reason for reduced visitor numbers.
This additional investment will help businesses extend their operating seasons and create better experiences for visitors.
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans said:
“Our Welsh tourism and hospitality businesses offer fantastic year-round experiences, but the weather isn’t always on our side. By allocating a further £2 million to our popular weatherproofing fund, the Welsh Government is helping nearly 400 businesses stay open longer, keeping people employed, and boosting local economies across Wales.”
Tourism and hospitality businesses represent 11.8% of total jobs in Wales. The weatherproofing measures will support more stable, full-time employment.
This recall involves removing certain devices from where they are used or sold. The FDA has identified this recall as the most serious type. This device may cause serious injury or death if you continue to use it.
Affected Product
The FDA is aware that Alcon has issued a letter to affected customers recommending certain Alcon Custom Paks be removed from where they are used or sold.
Affected devices:
What to Do
Locate and dispose of any affected lots of Alcon Custom Pak remaining in your inventory.
On November 24, Alcon sent all affected customers a letter recommending the following actions:
Review your inventory to determine if you have any unused affected product within your facility.
Segregate and dispose of any unused affected product from your inventory.
Call Alcon Customer Service to arrange for replacement of your affected inventory of Alcon Custom Pak.
Please forward this notification to all departments within your organization who may be in possession of this affected product; and any other organization to which this product may have been transferred.
Reason for Recall
Images of product with incomplete seal.
Alcon stated that impacted lots may contain pouches with incomplete seals. Due to the risk that the sterile barrier may be compromised, Alcon is recalling potentially affected lots. The use of non-sterile surgical products may increase the risk of microbial contamination and subsequent ocular infection which may necessitate additional medical attention.
As of December 18, Alcon has not reported any serious injuries or deaths associated with this issue.
Device Use
Alcon Custom Paks are customer-designed, sterile surgical procedure packs/convenience kits intended for use by trained ophthalmic surgeons in a variety of ophthalmic surgeries. Custom Pak is a collection of various ophthalmic surgical instruments and the materials necessary to perform an ophthalmic surgical procedure.
Contact Information
Customers in the U.S. with adverse reactions, quality problems, or questions about this recall should contact Alcon through https://notifeye.alcon.com/external/s/ or call 1-800-757-9780 and select option 5.
Additional FDA Resources:
Unique Device Identifier (UDI)
The unique device identifier (UDI) helps identify individual medical devices sold in the United States from manufacturing through distribution to patient use. The UDI allows for more accurate reporting, reviewing, and analyzing of adverse event reports so that devices can be identified, and problems potentially corrected more quickly.
How do I report a problem?
Health care professionals and consumers may report adverse reactions or quality problems they experienced using these devices to MedWatch: The FDA Safety Information and Adverse Event Reporting Program.
Australians can expect to see more electric utes, sports cars and hatchbacks that break price records at both ends of the spectrum, with changes encouraging even the most reluctant brands to join the trend.
But the electric vehicle market could also experience significant regulatory upheaval in 2026, with a road-user charge on the national agenda and a review of tax exemptions.
Both moves could have a significant effect on the local automotive industry, experts say, and on Australia’s target to cut emissions between 62% and 70% by 2035.
More than 153 electric and plug-in electric cars were on sale in Australia during 2025, according to the Electric Vehicle Council, but many more are queued up to arrive this year.
They include several models from BYD, such as an electric hatchback poised to post a price record at $23,990, and a high-end luxury sports car from Polestar that promises to reach 100km/h in less than four seconds.
Traditional auto brands are also expected to add to Australia’s electric options after Mazda announced plans to launch its 6e sedan, and Toyota cut the price of its bZ4X SUV update and confirmed the launch of an electric HiLux ute.
More competitive prices and choices would be welcomed by consumers, Swinburne University future urban mobility professor Hussein Dia said, after years of challenges and constrained supply.
BYD will launch its Atto 1 electric vehicle in Australia in 2026. Photograph: AAP
“Market forces are going in the right direction,” he said. “It’s good to have more lower-priced models on the road.”
Some of the launches appeared to be inspired by the new vehicle efficiency standard introduced in January, Dia said, and carmakers’ efforts to avoid being penalised for exceeding their emission targets.
Sales of new electric, plug-in hybrid and hybrid vehicles had all increased during the year, according to the Federal Chamber of Automotive Industries and Electric Vehicle Council, while petrol and diesel car sales fell.
Regulatory changes could alter that trajectory, however, after the treasurer, Jim Chalmers, announced a review of tax exemptions for electric cars in place since 2022.
Almost 100,000 electric cars had been bought through the exemption, Chalmers said, which had exceeded expectations.
A road-user charge is also being considered by the federal government, which could apply to electric vehicle drivers who currently do not pay fuel excise.
Introducing charges and removing discounts before electric cars made up 30% of new car sales could slow adoption, Dia said, and make reaching environmental goals difficult.
“I hope it doesn’t end up being just an electric vehicle tax and that it will be an opportunity to revisit the whole taxation system,” he said.
“We would like it applied to all vehicles.”
A public consultation into the electric car discount will be open until 5 February.
Ten electric cars arriving in Australia in 2026
BYD Atto 1
($23,990): This hatchback could be the cheapest electric car on the market when it arrives in Australia, with the base model promising a range of 220km and fast-charging.
Polestar 5
($171,000): This Porsche rival packs in plenty of luxury features. The base model comes with two motors and will hit 100km/h in 3.9 seconds.
Hyundai Elexio
Due early in the year, this mid-sized SUV features a futuristic design and a battery that promises to travel more than 500km per charge.
Honda Super-ONE
It might look like a toy car but this compact vehicle is real, has been designed for urban driving and will launch in the second half of 2026.
Honda will launch its Super-ONE electric car in Australia this year. Photograph: AAP
Mazda 6e
The popular Japanese car brand will add an electric sedan to its fleet in mid-2026. The 6e will feature a rear motor and a range of more than 500km.
Toyota HiLux EV
Australia’s most popular car brand will deliver an electric version of its HiLux ute in the first half of 2026. Its price is tipped to fall between $90,000 and $100,000.
Kia PV5
An electric van will join Kia’s lineup of SUVs and sedans late in 2026, and promises a range of up to 412km from its base model.
Suzuki e-Vitara
Suzuki’s first mass-produced electric vehicle will arrive early in the year and in the shape of an SUV. Its price is yet to be revealed but its base model could feature a 400km range.
XPeng X9
The latest vehicle from this Chinese brand is a seven-seat people-mover expected to arrive on roads in the second half of the year.
Leapmotor B05
The B05 is a five-door electric hatchback due midway through the year. It will feature a rear-wheel motor and 361km base range.
We took the KGM Musso, Australia’s first ‘affordable’ electric ute, to Bunnings – video
Motorists can expect to see more electric utes, sports cars and small hatchbacks arrive on local roads, including vehicles that could set new price records at both the affordable and luxury ends of the market.
At the same time, proposed regulatory changes, including a possible road-user charge and a review of tax exemptions, could reshape how electric vehicles are bought and owned in Australia.
Big year ahead for electric models
More than 153 electric and plug-in electric vehicles were on sale in Australia during 2025, according to the Electric Vehicle Council, with many more scheduled to arrive in 2026.
Among them are several new models from Chinese car maker BYD, including an electric hatchback priced at $23,990 that could become Australia’s cheapest electric car.
At the other end of the scale, Polestar is preparing to launch a high-performance electric sports car that promises to reach 100km/h in under four seconds.
Traditional car brands are also expanding their electric offerings. Mazda has confirmed plans to launch its 6e electric sedan, while Toyota has cut the price of its updated bZ4x SUV and locked in the arrival of an electric HiLux ute.
Prices easing as competition grows
Swinburne University future urban mobility professor Hussein Dia said growing choice and more competitive pricing would be welcome after years of supply constraints.
“Market forces are going in the right direction,” he told AAP. “It’s good to have more lower-priced models on the road.”
Some of the new launches appear to be influenced by the New Vehicle Efficiency Standard introduced in January, Prof Dia said, as car makers move to avoid penalties for exceeding emissions targets.
Sales of new electric, plug-in hybrid and hybrid vehicles rose during 2025, according to the Federal Chamber of Automotive Industries and the Electric Vehicle Council, while petrol and diesel vehicle sales declined.
Policy changes loom
Despite the growth, the electric vehicle market could face regulatory upheaval in 2026.
Federal Treasurer Jim Chalmers has announced a review of tax exemptions for electric vehicles that have been in place since 2022. Almost 100,000 electric cars have been purchased under the scheme, exceeding expectations.
A road-user charge is also being considered by the federal government. If introduced, it would apply to electric vehicle drivers who currently do not pay fuel excise.
Both changes could have a significant impact on the automotive industry and on Australia’s target to cut emissions by between 62 and 70 per cent by 2035.
Public consultation on the electric car discount will remain open until 5 February.
10 electric cars arriving in Australia in 2026
BYD Atto 1 ($23,990) A small hatchback that could become Australia’s cheapest electric car, with a base range of 220km and fast-charging capability.
Polestar 5 ($171,000) A luxury performance sedan with dual motors, capable of reaching 100km/h in 3.9 seconds.
Hyundai Elexio A mid-sized SUV due early in the year, offering a range of more than 500km.
Honda Super-ONE A compact, city-focused electric car launching in the second half of 2026.
Mazda 6e An electric sedan arriving mid-2026, featuring rear-wheel drive and a range exceeding 500km.
Toyota HiLux EV An electric version of Australia’s best-selling ute, expected in the first half of the year, priced between $90,000 and $100,000.
Kia PV5 An electric van due late in 2026, offering up to 412km of range in its base model.
Suzuki e-Vitara Suzuki’s first mass-produced electric vehicle, an SUV arriving early in the year with an expected range of about 400km.
XPeng X9 A seven-seat electric people-mover from the Chinese brand, arriving in the second half of the year.
Leapmotor B05 A compact electric hatchback due mid-2026, with rear-wheel drive and a base range of 361km.
UC Berkeley professor Ting Xu has spent more than seven years trying to figure out how to design synthetic polymers with protein-like behaviors. Now, she and a team of researchers have unlocked “design rules” that upend long-held views on polymers and could pave the way for eco-friendly plastics and other materials.
As reported today in Nature, the researchers, including MIT professor Alfredo Alexander-Katz, discovered something “wild” when they set out to design polymers as synthetic enzymes: Though their synthetic enzyme couldn’t fold like a natural protein, and its underlying molecular structure was slightly different, it could still mimic the behavior of a natural enzyme.
According to Xu, professor of materials science and engineering and of chemistry, the key lies in the polymer’s ability to bend, twist and easily change the shape of its carbon “backbone.” This flexibility not only compensated for any structural differences between the lab-created and natural versions, but it also enabled the synthetic enzyme to surpass the functional capabilities of a natural enzyme.
“This work is philosophically a quantum leap for us,” said Xu, who is also a faculty scientist at Lawrence Berkeley National Laboratory. “I went from thinking that I won’t be able to replicate the function of the proteins until I can replicate their exact structure and monomeric sequencing, to now seeing a viable pathway. It fundamentally shifts my view on how we should design bioinspired materials.”
A highly collaborative effort, this investigation brought together researchers from UC Berkeley; MIT; University of Illinois Urbana-Champaign; University of California, Davis; and University of Michigan.
According to Xu, identifying these design rules could lay the groundwork for future research and applications. “This foundational knowledge will enable us to produce functional polymers that meet technological needs in a range of areas, from the life sciences and energy to the environment,” she said.
One long-range goal is to use this knowledge to “re-imagine the plastics industry” and solve the ongoing compatibility issues between our need for plastics and their environmental impact. “If we design the polymer right, we may be able to develop plastics that meet both our current durability requirements and future environmental goals,” she said.
Xu added that understanding this translation mechanism will also enable the design of new materials that can do things that natural enzymes can’t — like safely break down antibiotics that pollute our waterways.
“This work is the culmination of many years of research,” she said. “It shows the importance of basic science and how it can open the door to exciting possibilities.”
This research was supported by the U.S. Defense Threat Reduction Agency, the U.S. Department of Defense, the National Science Foundation and the Laboratory Directed Research and Development (LDRD) Program at Lawrence Berkeley National Laboratory.
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Can synthetic polymers replace the body’s natural proteins?
Samsung Electronics has acquired FläktGroup, a leading global HVAC (Heating, Ventilating and Air Conditioning) solutions provider, to aggressively expand its presence in the fast-growing HVAC market.
With the acquisition completed in November last year, FläktGroup’s new CEO David Dorney is set to guide the company through an exciting chapter. A seasoned industry executive, Dorney brings more than 20 years of global HVAC leadership experience with a focus on driving growth across key industrial sectors.
Samsung Newsroom sat down with Dorney to hear more about his vision for the future, the opportunities ahead and what the acquisition means for FläktGroup.
▲ David Dorney, CEO of FläktGroup
Q. Tell us about FläktGroup and its biggest strengths.
FläktGroup has deep roots with a story that goes back to 1909. We’ve pioneered ventilation systems for commercial and industrial buildings, clean rooms, marine applications and fire safety.
We are proud of our teams, their expertise in their chosen fields and the immense effort they put into their work every day. We want our FläktGroup employees to grow in the best way possible. We aim to ensure this happens by continually investing in training and developing our people. This will be coupled with the delivery of top-quality solutions from each of our 14 global manufacturing facilities, backed by our field-trained after-sales service engineers, so that our many loyal customers can enjoy continued satisfaction and peace of mind.
One area of deep expertise is in data center cooling — since introducing our first computer room air conditioning (CRAC) unit in 1964, we’ve been delivering solutions for more than 60 years. That experience means we understand every detail, from precision cooling to energy efficiency.
Q. How do you see the HVAC market today and in the future?
The HVAC market is strong and growing, driven by energy efficiency mandates, rising urbanization, adoption of smart technologies such as IoT and AI and increased focus on indoor air quality (IAQ), with projections showing significant expansion through 2030-2035. Key trends include demand for heat pumps, low-GWP refrigerants and smart connected systems.
Obviously, we are seeing rapid innovation in liquid cooling technologies, and globally, demand for energy-efficient HVAC systems is rising in regions like North America, Europe and Asia-Pacific. The outlook for our industry is positive and we’re ready to adapt and lead.
▲ FläktGroup’s HVAC solution products
Q.What are some of FläktGroup’s recent successful projects?
Our recent important projects span both new-build and turnkey retrofit solutions across a range of essential industries. For instance, we’ve onboarded a number of new data center customers and have provided on-site support for AI and cloud services globally. We have also delivered a turnkey solution in Sweden for a customer building a CO2-free steel production plant, and we completed several defence projects within our marine business, for various countries including India and the US.
This year, we achieved our first cross-selling success in the US, where we delivered FläktGroup Air solutions together with Samsung modular chillers1 for controlling the environmental conditions in an aerospace application.
Q. Where do you see synergies between Samsung and FläktGroup?
We are looking at cross-selling opportunities, supply chain integration and joining forces when it comes to R&D, to accelerate the time to market with our key new product introduction (NPI) roadmap.
By combining FläktGroup’s HVAC expertise with Samsung’s technology leadership, we can create smarter, more connected solutions. For example, integrating our HVAC systems with Samsung’s SmartThings Pro and b.IoT platforms will open doors to advanced energy management and smart building solutions. Samsung also brings strong AI capabilities, which we can use to optimize performance and efficiency.
▲ FläktGroup’s office in India
Q. Which regions or industries will you focus on next?
Our priority is to build on our new partnership with Samsung and continue the collaboration between our teams that started in 2025. We’re focusing on coolant distribution unit (CDU) technology and expanding our FläktEdge smart control systems, while investing in R&D to speed up delivery and support partner projects.
The planned plant in Korea will be a template for all future FläktGroup factories, and it is essential to the expansion of our presence in the wider region. We’re also investing in new production facilities and field services in India and the US, where we see significant growth opportunities in data centers and indoor climate solutions.
▲ A truck tour named “Fläkt on Wheels” was held across 18 countries and 45 different locations, introducing FläktGroup’s solutions to over 1,200 customers.
Q. What is your vision as CEO, and what are your key goals?
Our vision is clear: we want to move forward with Samsung in 2026 and beyond, becoming a global leader in HVAC. That means working closely with our customers and partners alike, addressing their key challenges such as reducing their carbon footprint. It’s a big mission, especially with climate change and its impact on wellbeing.
Our goals focus on innovation, quality and sustainability. We’ll keep developing energy-efficient solutions and smart technologies that make buildings healthier and safer. FläktGroup has already been doing this for more than 100 years, leveraging our broad product portfolio and also investing in new solutions, and now we are taking it to the next level.
Q. Looking ten years ahead, where do you see FläktGroup?
I see FläktGroup, together with Samsung, as a global leader in HVAC and a trusted name everywhere. We’ll be known for sustainability, smart technology and energy efficiency.
Some examples of our current focus areas are expanding environmental product declaration (EPD)2 coverage to 95% of products by 2026, launching FläktEdge specifically for key mission-critical vertical markets and embedding circular economy principles into design and packaging.
Through these efforts, we hope that FläktGroup will establish itself as a company that contributes to creating a more sustainable global society.
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
Moncton artist Alan Spinney doesn’t usually paint on a five-by-five inch canvas, but he and his wife have started doing that for a new mini-art gallery.
The mini-art gallery is a rectangular, metal tower with glass shelves that displays small paintings, ceramics, glass works, ornaments and mixed-media for people to purchase.
Spinney said it was challenging painting on a small surface, but there was a perk.
“I didn’t have to step back five or six feet to look at the painting,” he said.
The galleries help promote local artists and are set up at five businesses in downtown Moncton, N.B.
“I think it’s really valuable to have this, these small mini galleries around downtown in kind of unexpected places,” said Spinney.
He said this gives him and his wife an opportunity to display their art for sale at locations they otherwise wouldn’t be able to, such as a café or hotel lobby.
“And it puts us in a group setting with other talented artists,” he said.
Kathryn Basham says the mini-art galleries will stay at the five locations for 2026. (Kathryn Basham)
When someone approaches a mini-gallery, they scan a QR code to purchase the art. They can choose to have it delivered or picked up at Bright and Brine Fine Art Gallery. Its owner, Kathryn Basham, is the brain behind the project.
“There’s very limited amounts of gallery space within the city and so being able to offer these little pop-ups … offers more of that space for artists to have their work on display,” she said.
Basham said the galleries were installed in late November. She said the money from each sale goes to the individual artist.
Artist Helen Spinney is one of the people taking part in the project. (Alan Spinney)
Helen Spinney said the mini paintings can be used for corporate gifts, for small apartments or decorating a wall with multiple pieces of tiny art.
The couple is focused on an upcoming exhibition and do not have additional mini-art in the works yet.
“We’re excited to hear responses about people who have seen these small galleries and go from there,” said Alain Spinney.
“We’re always painting,” said Helen Spinney. “It’s just something we love to do.”
Modular and prefabricated homes could be used for public housing in Canberra to help “scale up” the local home manufacturing industry.
It’s just one method the ACT government is considering to meet its target of enabling 30,000 news homes in the territory by 2030.
The Master Builders Association has labelled the target “a pipe dream”, but Planning Minister Chris Steel says they’re doing all they can to achieve the goal, despite falling about 100 dwellings short of its first-year target of 4,200 new homes.
That’s why modular and prefabricated housing and components are increasingly viewed as potential solutions to Australia’s housing crisis.
They’re built off-site in factories and then transported to their final location for assembly, and are often a cheaper and quicker housing option.
But those in the industry warn there needs to be substantial changes in planning, regulation and finance rules to make modular and prefabricated housing an affordable, scalable solution.
Manufactured houses ‘the future of building’
Geoff McGinley first looked into tiny homes to avoid the mortgage trap. (ABC News: Joel Wilson)
Geoff McGinley’s modular housing business began as a project to design and build his own home.
“I’d done 28 years in the Navy, and I was ready for the next dream, for the next passion to follow, and I needed an affordable housing solution,” Mr McGinley said.
“I didn’t want to get locked into the mortgage trap that I see and so I thought, ‘I’ll go for a tiny house’.”
Though tiny houses are comparatively affordable and quick to move and set up, Mr McGinley wasn’t happy with the size of the structures on offer.
“Tiny houses are, well, tiny, so … I went and found a really high-quality manufactured house,” Mr McGinley said.
“And manufactured houses really are, I think, the future of building in Australia.“
The biggest constraint Adapt Homes faces is the planning process, Geoff McGinley says. (ABC News: Joel Wilson)
Mr McGinley constructed what he says is like “an extra-large tiny house on wheels”.
“I took this National Construction Code modular house, and we put it onto a commercial truck trailer … it legally meets the definition of a caravan,” he explained.
“Having delivered my house and moved in, I sort of turned to my builder and said, ‘Hey, we can’t stop at one’.
“There is this housing crisis in Australia, and there’s a lack of options.
“People are looking for different ways to solve their housing solutions and they’re getting locked into a smaller range.
“We wanted to give people options so that they had a housing solution when traditional ways of doing this didn’t work.”
Mr McGinley’s company, Adapt Homes, now offers several moveable tiny houses, which range in size from 14 to 40 square metres, and can be joined together or stacked, like toy bricks, to make larger buildings.
Manufactured mostly in China, Mr McGinley argues the supply of these types of homes — which, once built, can be set up on a property in a matter of hours — could be easily scaled up to provide 1,000 a month.
“The biggest constraint is not our ability to manufacture the homes,” Mr McGinley said.
“The biggest constraint is the planning process.
“Obviously, we want to ensure that these homes are fit for purpose and suit the environment.
“But our planning processes take a long time — a really, really long time — they can take three to four times the duration to build a house.”
Mr McGinley said these factory-made homes could be used to provide crisis accommodation quickly and give more options to people for whom owning a home is currently out of reach.
“We see young families or old families, we see people escaping a crisis, we see people who are just trying to live life their way,” he said.
“Let’s accept that there is a path for long-term habitation on a tiny house on wheels. And let’s see this as both an option, but also as our sort of our go-to. Let’s fix something.“
High demand for prefabricated options
AJC Modular CEO Andrew Copley says there needs to be a change in regulation regarding modular housing. (ABC News: Callum Flinn)
AJC Modular chief executive Andrew Copley agrees changes to regulation are needed in order to meet the housing demand in both the ACT and nationally.
His company’s factory in Queanbeyan uses Australian-made structurally-insulated panels to build modular granny flats and homes.
The panels are an insulated foam core sandwiched between two structural facings — in AJC’s case, gyprock.
“We use structurally insulated panels for a few reasons,” Mr Copley said.
“The cost: because we can make them a lot quicker, they go together like Lego pieces; and the sustainability aspect — they’re highly efficient for energy efficiency ratings.”
Prefab panels stacked up inside the modular housing factory in Queanbeyan. (ABC News: Callum Flinn)
He also said the panels are cut to size — so involve minimal wastage.
“And even if we do have wastage, we’ve got specialised recycling bins here to make the best use of that waste, whereas at a [traditional house] job site, it just all gets dumped into one generic waste bin,” he said.
An artist’s impression of a modular home. (Supplied: AJC Modular )
Mr Copley said his company had seen so much demand that they’re now setting up a second factory in Brisbane.
But he argues design approval and certification processes stand in the way of building the number of homes needed to meet government housing targets.
“From the time it takes me to start a job and complete it, it’s about 12 to 14 weeks,” he said.
“However, getting it to that point where we’re actually allowed to start it is the biggest hurdle.
“It doesn’t matter what state it is, it’s just a massive red tape on this product where it shouldn’t be.
“These are all preset designs. They’re pre-engineered. Everything is built exactly the same way every single time.
“But yet we still have these massive hurdles and massive roadblocks to get the product through.”
An artist’s impression of a modular home. (Supplied: AJC Modular )
Mr Copley thinks Australia could learn from the American industry.
“In America, they’ll come and inspect your factory, they’ll look over your building methods, they’ll look at your engineered drawings,” he said.
“And as long as you meet those set criteria and you tick all the boxes — like your setbacks are within the requirements, the house size is within the requirements — it’s an automatic approval.
“We should have the same here. It’s concerning that we’re not at that stage yet.“
Calls for more investment and less red tape
The ACT is ahead of achieving the national housing target to build 1.2 million homes over 5 years, but still fell about 100 dwellings short of its first-year target of 4,200 new homes.
Master Builders ACT Chief Executive Anna Neelagama is sceptical the territory will be able to build 30,000 homes by 2030. (ABC News: Callum Flinn)
Master Builders ACT Chief Executive Anna Neelagama is sceptical the target will be met in the territory.
“Master Builders ACT has labelled the 30,000 target a pipe dream,” she said.
“Our data indicates we will need to build a whopping 4,700 homes each calendar year in order to make up that shortfall and achieve that goal by 2030.
“The industry is suffering from a stranglehold of red tape and regulation and what we’ve said to the ACT government is that we need to give builders time and money back in order to get on with the job of building houses.”
Among the things the industry group are asking for to meet the target is a faster planning system; investment in critical construction trades; and a hold on implementing changes from the National Construction Code 2022 (NCC 2022) — the primary framework of minimum standards for new buildings and building work, which is reviewed every three years.
But the peak body has welcomed the proposed Missing Middle changes to the ACT’s planning system, and argues the inclusion of modern methods of construction — like the use of modular and prefabricated materials or buildings in their entirety — is necessary if demand for housing is to be met.
“They can reduce build times by up to 50 per cent, and they can also reduce the cost of a home end-to-end by about 20 per cent,” Ms Neelagama said.
However, she warned that modular housing “absolutely” should be built by a licensed builder, and raised several questions around compliance.
“In Australia, building a house is very highly regulated,” Ms Neelagama said.
“The homeowner is represented by an independent certifier, and it’s very heavily governed here in the ACT by the Construction Occupations Registrar.
“Modern methods of construction are obviously far less site-based, and there aren’t those checks and balances available yet, in order to deliver the quality consumer outcomes.
“So, at what point do the certification and quality checks occur? Is it in the factory? Is it on site? Who are the people responsible for putting it all together?
“These questions remain unanswered by the ACT government.”
Planning Minister Chris Steel says greater uptake of modular housing will require “a whole change in thinking”. (ABC News: Matt Roberts)
ACT government using prefabricated homes for public housing
Planning Minister Chris Steel said the government was indeed seeking answers on how to bring more modular and prefabricated homes into Canberra.
“The Commonwealth has put some money on the table to accelerate modern methods of construction, and so we’ll work with them and try to use that funding to try and demonstrate this type of housing in the ACT through public housing,” he said.
“Then that might enable the private sector to get on board.”
However, Mr Steel argued that the challenges of modular housing need to be met at multiple levels of government, and within industry.
“It’s required a whole change in thinking,” Mr Steel said.
“There is an opportunity through modern methods of construction to gain efficiencies and scale up production of new homes, and there is a considerable national effort that’s required to support that at every different level.
“We’re working with the Commonwealth on that, but we’ll need to work with industry.
“We also need to look at [how] the planning and building system [support] this type of development when it is built on site, so they can gain the necessary approvals — potentially part of that in the factory, but then certainly once it’s transported out on site and put in place.”
Mr Steel said the government had been talking with banks and financial institutions about what they need to do to restructure loans to support this type of housing.
However, he said one of the fundamental problems is the cost of transporting modular housing, which can be quite high if coming from interstate.
“But if we’ve got local suppliers, then there may be the opportunity through procurement standards that the ACT government might set for public housing, for example, to try and scale up the industry through government procurement,” he said.
“That might also entice the private sector and mums and dads who want to build this housing … if we can show some great examples of it being used in public housing in the ACT.“
One of the biggest costs for modular housing is transporting the structures into place. (ABC News: Joel Wilson)
Missing middle focus remains
Mr Steel said the government’s focus on providing housing for the missing middle remained sharp.
Missing middle housing refers to terraces, townhouses, duplexes and low-rise apartment buildings, and the government wants them in areas currently zoned for standalone houses.
“One of the commitments that we made at the election was to deliver a pattern book for housing in the ACT,” he said.
“This Canberra housing pattern book would be a set of pre-approved designs, which could then have an accelerated pathway through the planning system.
“We want to focus on missing middle housing and provide the opportunity for prefabricated or modular housing as part of the pattern book in Canberra.“
Despite the pessimism in the industry and concerns about delays in implementing the proposed missing middle changes, Mr Steel remains optimistic the government’s housing target can be met, through a combination of planning changes and land release.
“We’re on track to meet the national housing target, and we are at the moment putting in place all of the regulatory changes, the zoning changes, to enable the 30,000 homes,”
Mr Steel said.
“We’re confident at this stage that we’ve already pretty much met the target in year one, and we’ve got the future reforms currently before the Assembly, and more to come next year that will enable us to reach the target.”
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