It will take up around 35,000 square metres of area in the Lionsgate Business Park, which has been refurbished following Holden's departure in 2017.
Trade and Investment Minister Nick Champion said reworking one of Adelaide's most iconic manufacturing sites highlights the strength of the manufacturing sector.
“Few would have thought it possible transforming Holden’s old factory floor into a place where exotic mushrooms can be grown and cultivated but South Australians not only innovate, we lead the rest of the pack,” he said.
“Nothing like this facility exists interstate and we want to support local companies to expand and reach new customers on a national and global scale.”
The plant will provide a supply of locally grown mushrooms to both stores and restaurants, which normally rely on imported stock. Around 85 per cent of Australia's exotic mushrooms are imported from overseas.
It's expected the new site will spark 350 new jobs.
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